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Minister Chidhakwa

Tinashe Makichi recently in Victoria Falls
Government is considering revoking operating licences for companies that fail to submit concrete exploration plans as more measures are being put in place to curtail suspected looting in the mining sector.

This move is being proposed to foster accountability and transparency at the same time ascertaining how much resources the country has.

Zimbabwe has been trailing behind the rest of the world in terms of mineral exploration and development and has lost out on major “commodity booms” enjoyed elsewhere.

Speaking at the 5th Buy Zimbabwe Buy Local Summit in Victoria Falls last Thursday, Mines and Mining Development Minister Walter Chidhakwa said lack of exploration by miners is subject to looting.

“We must develop skills consistent with the dynamics of the mining sector and the country should seriously consider exploration to promote accountability. We must do the mapping of our minerals.

“Mining without doing proper exploration is subject to looting as has been the case with the diamond mining sector,” said Minister Chidhakwa.

He said Government will take action on miners failing to do exploration and it will come up with a policy to curtail minerals leakage and lack of transparency in the mining sector.

Minister Chidhakwa said those companies that fail to do proper exploration risk having their mining licenses revoked.

“We want to make sure our miners do the right thing and it is the citizen’s human right to know how much minerals the country and that can only be ascertained through exploration.

“Government is serious about this move and we will rather give the licenses to those willing to do the right thing,” said Minister Chidhakwa.

The treasury last year availed $5 million capital to the Ministry of Mines and Mining Development to enable the Mining Promotion Corporation to start operations.

The MPC was formed to spearhead mining exploration activities for Government and the organisation will also ensure an increase in exploration activities and development of an inventory of bankable projects that can be marketed to potential local and international investors.

According to last year’s report by the Business Monitor International, the country requires no less than $3 billion for the exploration of mineral deposits in the next five years. BMI stated that Zimbabwe’s lethargy on the exploration front does not only allow it to play a particularly welcoming host to capital from its natural mineral resources.

The country Zimbabwe has not carried out comprehensive exploration to determine the extent of its mineral wealth over the past three decades.

Most mining companies and nations invest 10 percent of their mining budgets into exploration, whereas in Zimbabwe only commits about one percent.

On platinum miners, Minister Chidhakwa said Government is not at war with platinum miners pertaining the setting of a refiners but the main focus is on growing the cake for the better of Zimbabwean citizens.

He said the gold mining sector has been moving on a 50 percent growth rate boosted by compliance that has been seen since last year mostly from small scale miners. “We have witnessed considerable growth in terms of gold deliveries since last year considering that gold has been transported where it was not supposed to go. The Ministry has set up a team to foster compliance on the ground,” said Minister Chidhakwa.

He said all the gold should be sold to the national sole gold buyer, Fidelity Printers and Refiners and anyone who refuses to comply will be arrested.