Bigwigs To Lose Mining Claims

LIVINGSTONE MARUFU

Zimbabwe’s powerful figures and companies will lose their mining claims if they do not utilise them by mid-2020 under a new government “use it or lose it” mining policy as the country chases a US$12bn mineral revenue target, Business Times has learnt.

The development comes at a time when most prominent figures are holding claims for speculative purposes thereby costing the country potential revenue.

This has compelled the government to embark on a “use it or lose it” policy, which will take away a holder’s licence if he/she does not exploit the concession.

The Minister of Mines Winston Chitando told Business Times that the government was moving towards making mining the cornerstone of the government’s economic turnaround strategy and a lot still had to be done if the country was to achieve the US$12bn mineral revenue target set by the government.

“To reach that mark, we first need to ramp up production and increase productivity levels,” Chitando said.

“We need to utilise all mining claims that have been licensed. Under the new mining policy, we will withdraw licences from anyone who doesn’t utilise it, be it a prominent figure or not. We will take it away.”

Prominent figures, including serving and former senior government officials, are the main holders of the underutilised claims across the country, according to Chitando. Analysts say the true test of Chitando’s seriousness will come next year when he renews or withdraws licences from miners.

According to the Ministry of Mines and Mining Development, gold is the country’s flag carrier with US$4bn earnings, followed by platinum with US$3bn, and other minerals sharing the remaining US$5bn. Chitando said the country was expecting a huge investment in the mining sector, and the production of enough electricity with surplus to be exported.

Since June this year, the economy has been reeling from power cuts making it difficult for companies to operate.

“We will certainly achieve US$12bn by 2030 due to the fact that coal production will improve significantly and will make Zimbabwe a net exporter of electricity owing to various projects which will be completed in the next two or three years,” Chitando said.

Experts say the US$12bn target could be reached before 2023 if Zimbabwe improves on fundamentals and forex retention levels.

“If over 40 tonnes of gold are being smuggled in South Africa yearly together as Finance Minister Mthuli Ncube said recently, and an average of 30 tonnes being sold in the formal sector, Zimbabwe will get over US$3bn worth of export earnings,” said one expert.

Irvine Chinyenze, the CEO of the Gold Miners Association of Zimbabwe, said Zimbabwe would reach the US$12bn revenue target before 2023 if the authorities could take into account all minerals lost through leakages.

“We are losing about US$2bn mineral revenue to smugglers in the gold sector, just imagine what we can have in terms of revenue if we curb leakages in all minerals,” Chinyenze said.

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