Crafting ESG framework for mining companies in Zimbabwe
FUNGAI CHIMWAMUROMBE AND BHEKIMPILO MANGENA
Overview
Section 73 of Zimbabwe’s Constitution gives the State the mandate to take reasonable steps to protect the environment for the benefit of present and future generations.
The constitution accords every citizen a right to a healthy environment.
Mining companies should subscribe to environmental protection provisions of the Mines and Minerals Act (Chapter 21:05), Water Act (Chapter 20:24), Environment Management Act (Chapter 20:27), Explosives Act (Chapter 10:08); Forestry Act (Chapter 19:05), Hazardous Substances and Articles Act (Chapter 20:03); Atmospheric Pollution Prevention Act (Chapter 20:03) and Parks and Wildlife Act (Chapter 20:14).
The given Acts should inform the environment, social and governance (ESG) framework for mining companies in Zimbabwe.
Basis for Mining Companies ESG Framework
Mining is a business which changes the landscape of the environment due to its extractive nature.
Open cast (surface), shaft (underground), quarrying and other forms of mining bring forth land degradation, pollution of atmosphere and water sources.
It is against this background that mining companies ESG framework should focus on mitigating effects of their operations. Mining companies should work with communities through traditional leaders, Environmental Management Agency (EMA), Ministry of Mines and Mining Development (MMMD), Forestry Commission, Zimbabwe National Water Authority (ZINWA), Zimbabwe Parks and Wildlife Management Authority (ZIMPARKS), local authorities and the Ministry of Local Government, Public Works and National Housing which has the mandate to administer the Communal Lands Act (Chapter 20:04).
Sustainable cities and communities, is the global Sustainable Development Goal (SDG) number 11, hence community involvement in mining companies ESG programmes is central. The International Financial Reporting Standard (IFRS) S1 (general requirements for disclosure of sustainability-related financial information) and S2 (climate-related disclosures) issued by the International Sustainability Standards Board (ISSB) and adopted by the Public Accountants and Auditors (PAAB) of Zimbabwe effective January 2024 also has a huge bearing on mining companies ESG framework given need to consider sustainability and climate opportunities and risks such as water conflicts.
Key ESG Programmes for Mining Companies
Mining titles give mining companies, syndicates and individuals rights to do mining activities in communal areas, farms, national parks, forestry areas, private land and urban areas.
People in affected communities, wildlife and natural habitat, cultural and historical sites as well as infrastructure such as roads, hospitals, schools and clinics may require re-location.
The relocations and related compensation of displaced people should be line with the Zimbabwe Human Rights Commission (ZHRC) statement on rights of internally displaced people issued on 13th July 2020 and the United Nations Guiding Principles on Business and Human Rights (UNGPs). Water, Sanitation and Hygiene (WASH) programmes such as borehole drilling and construction of clinics help create a sustainable ESG programme for mining companies.
Good Environmental Management Plans (EMP) should have rehabilitation of open pits, afforestation and proper discharge of chemicals.
Big mining projects should consider road and dam construction given that ores should be transported and huge volumes of water used during extraction and/or processing of ores.
Conclusion
Zimbabwe’s mining sector has seen rapid development in recent years due to discovery of lithium and other strategic minerals which may lead to land degradation, pollution of the atmosphere and water sources.
Mining companies ESG frameworks are therefore key to sustainable development and sustainable communities.
Fungai Chimwamurombe is a registered legal practitioner and Senior Partner at Chimwamurombe Legal Practice and can be contacted through email fungai@zenaslegalpractice.com.
Bhekimpilo Mangena is a registered Legal Practitioner, Public Accountant and a Business Consultant at Zenas Consulting (Pvt) Limited and can contacted through bheki@zenasconsulting.co.zw.
