What you need to know about the mining laws of Zim Part 1

 

Introduction

Zimbabwe is rich in mineral resources and is reportedly endowed with an estimate of over forty minerals comprising precious metals, base metals, industrial metals and gemstones.

The mineral resource sector is reported to have contributed 6.2% to Zimbabwe’s gross domestic product (GDP) between 2009 and 2015 and 8.4% from 2016 to 2018 and 60% of the country’s export earnings as of October 2018.

These statistics should have played a significant role in motivating the government of Zimbabwe through the Minister of Mines to claim that the sector has the potential to generate US$12bn annually by 2023.

The US$12bn mining industry ambition represents a 344% increase from the US$2.7bn registered in 2017.

The statistics provided are an indication that the mining sector can be one of the sectors that many would want to venture into and this piece will focus on the process of obtaining a prospecting license in Zimbabwe.

 

Registration as a prospector

Mining in Zimbabwe is regulated by the Mines and Minerals Act (Chapter 21:05) herein referred to as the Act and the process of obtaining registration is provided for in terms of Part III of the Act.

It has to be noted that the mining sector is highly regularised in Zimbabwe and prospecting is only done by a holder of a certificate of registration as a prospector.

In terms of Section 14 of the Act, the Secretary is actually obliged to keep a register of approved prospectors.

In terms of Section 15 of the Act, a person who is a permanent resident in Zimbabwe can apply for a prospecting license by;

 

(a)  Making a written application to the Commissioner in the prescribed form.

 

(b)  Pay a prescribed fee-this the mines office will always provide.

 

(c)  Submit photographs as may be required.

 

However, a person who is not a permanent resident in Zimbabwe can also make an application to be registered as a prospector only on condition that such an application is done with an accompanying written consent of the Minister.

The reading of Section 15 (2) of the Act provides that the Commissioner will determine the suitability of each applicant and consideration is largely given to the applicant’s extent of the knowledge of pegging procedures and of the rights and duties of prospectors and owners and occupiers of land under the Act.

This therefore, means that intending prospectors ought to be knowledgeable in and around the prospecting field and should be able to demonstrate that they are knowledgeable to the satisfaction of the Commissioner and the Secretary.

The Commissioner will submit the application to the Secretary with his recommendations and if the Secretary is convinced that the application is above board, he issues the Applicant with the certificate.

The Secretary may refuse the application on the grounds that the applicant is not a suitable candidate.

In refusing the application, the Secretary either remits the application to the Commissioner for further investigations or directly informs the applicant that he intends to decline his application and in doing so he is obliged to give reasons upon which he seeks to make such a decision.

Upon such a notification of refusal of the application, the application shall within 21 days appeal to the Minister stating grounds, which his appeal will be based on.

On receipt of the appeal, the Minister the Minister may allow the appeal or dismiss the appeal.

When the appeal is dismissed, the law does not provide for a further appeal platform.

The only recourse that the applicant has is making a fresh application in terms of Section 15 (5), which provides for a waiting period of five years or any shorter period as may be prescribed by the Minister.

 

Conclusion

This is in summary the process, which is provided for by the law for one to become a registered or approved prospector.

Part 2 of this article coming next week will focus on the expiry or renewal of registration as a prospector, cancellation or suspension and the provision of a duplication certificate and of course the intention is to enlighten the would-be investors in the mining sector.

 

Fungai Chimwamurombe is a registered legal practitioner and Senior Partner at Chimwamurombe Legal Practice and can be contacted for feedback at fungai@zenaslegalpractice.com and WhatsApp 0772 997 889. Tapiwa Muhlwa is a Senior Associate, email: tapiwa@ zenaslegalpractice.com

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