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Business Reporter

ECONOMIC analysts and other key stakeholders have commended a resolution adopted at the recently held ZANU PF conference in Bulawayo to amend the legislation governing Exclusive Prospecting Orders (EPOs) to enable multiple entities to explore areas currently covered by single EPOs.

EPOs are Government-issued licences that grant exclusive rights to an investor to explore for specific minerals within a designated area.

This allows the holder to conduct geological surveys, drilling, and other exploration activities without competition. 

They are typically granted for a three-year period, with the option for renewal for another three.

Concerns have been raised within the mining sector that some EPO holders are retaining these licences for speculative purposes, without contributing to economic development through exploration or mining activities.

Analysts believe that allowing multiple players to explore areas covered by EPOs would unlock significant value within the mining sector and stimulating economic growth.

This move could encourage increased investment, job creation, and foreign exchange earnings, ultimately benefiting the national economy.

“It will unlock a tremendous mining economy,” economic analyst Dr Langton Mabhanga said. “In some way, it will decolonise the mining sector since some of the provisions of the legislation are backdated to colonial times.”

Dr Mabhanga suggested that some EPO licence holders were using these licenses to speculate on mineral rights rather than actively exploring and developing them.

In August this year, the Government said it had started reviewing some EPOs granted to investors three years ago for coalbed methane to assess the investors’ commitment to these projects.

Mines and Mining Development Deputy Minister Dr Polite Kambamura said several factors were considered when approving or rejecting an EPO.

These include investor’s financial capacity to fund the project, the scope of the prospecting work, and the company’s reputation.

Dr Kambamura expressed concern that some holders might be holding on to licenses for speculative purposes rather than actively pursuing exploration and development.

“So, we will be looking at all those issues (such as) do (holders) have the capacity? Have they done similar work elsewhere? Do they work in other EPOs in the country because we do not want people to just hold for speculation,” he said.

Some of the resolutions related to the mining industry include enforcing the policy of “Use it or Lose it” in order to inhibit mining entities from holding mining claims for speculative purposes, develop and implement a robust programme to revive all closed down mines through modern technologies, innovation and funding frameworks, ensure that land owners in resettlement areas are given “the right of first refusal” in mining claims.

A mining expert, who requested anonymity, told this publication that reforming the EPO system is crucial for unlocking Zimbabwe’s mineral potential.

He said allowing multiple investors to explore areas covered by EPOs, the Government can stimulate competition, encourage timely exploration, and maximise economic benefits.

However, it was essential to ensure that the new regulations were are transparent, accountable, and promote sustainable mining practices.