The legal nature and importance of mining tribute agreements in Zimbabwe

By Rodger Gaiko and Fungai Chimwamurombe

A mining tribute is a distinct category of mineral right recognised under Zimbabwean law. It allows a holder of a mining location to grant another person the right to mine on that location in exchange for the payment of royalties.

Section 283 of the Mines and Minerals Act [Chapter 21:05] provides the statutory definition of a tribute agreement. According to the Act, a tribute agreement refers to any agreement by which a person grants a tribute, licence, concession, authority or other mining right to another party, known as the tributor.

The definition extends to agreements amended or renewed with the approval of the Mining Affairs Board.Central to the tribute agreement are two parties: the grantor, who is the holder of the mining location and the giver of the mining right, and the tributor, who receives permission to work the mining ground. This classification clarifies the legal relationship between the parties and the rights and obligations flowing from the agreement.

A tribute agreement is not a lease of land or even a lease of minerals. Instead, it is a unique sui generis contract in which the mine owner temporarily allows the tributor to exploit part of his or her mineral rights.

 The arrangement grants the tributor the right to extract minerals during the tribute period and sell them for personal gain, provided that an agreed share or royalty is remitted to the grantor. In essence, the tributor is permitted to recover as much mineral value as possible within the contractual timeframe, while honouring the terms agreed upon with the mine owner.To ensure legality and enforceability, tribute agreements must be properly approved and registered. Once a holder of a mining location agrees in writing to grant a tribute, the agreement must be submitted for approval under Part XVIII of the Mines and Minerals Act. Upon approval, the tributor may apply to the mining commissioner for the registration of a notarial deed embodying the terms of the agreement. The mining commissioner maintains a register in which all approved tribute agreements and their particulars are recorded, creating transparency, certainty, and legal formality in the mining sector.Requirements for a Valid Mining Tribute AgreementA mining tribute is both a contractual and a statutory creation. As such, its validity depends on compliance with general contract law principles as well as specific statutory requirements under mining law. For a mining tribute agreement to be considered valid, three essential elements must be met and these areThe agreement must be in writingTribute agreements fall into a category of contracts that must be reduced to writing to be enforceable.The agreement must receive approval from the Minister of Mines. Ministerial approval, often processed through the Mining Affairs Board, ensures that tribute arrangements align with national mining policy and regulatory standards.

The agreement must be notarially executed. Notarial execution provides authenticity, legal formality, and eligibility for registration with the mining commissioner.

Furthermore, because tribute agreements are tied to mining locations, their granting and transferability should always be interpreted alongside the legal framework governing mining locations.

The Importance of Mining Tribute AgreementsMining tribute agreements play a significant role in Zimbabwe’s mining industry, both historically and in modern operations.

They provide a legal mechanism through which resource-rich but undercapitalised mine owners can partner with individuals or companies who possess the necessary skills, labour, or equipment to carry out mining operations effectively. In doing so, tribute arrangements prevent mineral-rich land from lying idle and ensure that natural resources contribute to economic development.

Tribute agreements also open doors for small-scale and emerging miners by giving them lawful access to mineral deposits they would otherwise be unable to exploit.

This fosters entrepreneurship, broadens participation in the mining industry, and contributes to employment creation. For government, the registration and regulation of tribute agreements promote accountability, reduce illegal mining activities, and enhance revenue collection through royalties and taxes.

Overall, mining tribute agreements support efficient utilisation of mineral resources, encourage investment and productivity, and strengthen the legal and economic structures governing the mining sector in Zimbabwe.