38 EPOs issued as mining sector booms
THE future of Zimbabwe’s mining industry looks bright while the sector remains well positioned to continue driving strong economic growth following revelations the Government has issued a total of 38 active Exclusive Prospecting Orders (EPOs).
EPOs confer upon investors rights to prospect (search) for new mineral deposits in specific geographic locations of the country to promote the discovery of freshdeposits for the opening of new mines and expansion of existing operations.
Mines and Mining Development Minister Zhemu Soda revealed the details of permits issued to investors for prospecting during his ministry’s Mid-term Performance Review and 2024 Strategic Planning workshop in Masvingo yesterday.
The mining industry is one of Zimbabwe’s major economic sectors, accounting for more than 75 percent of foreign exchange earnings generated by the country, as well as contributing significantly to Government revenues, employment, and infrastructure development.
Minister Soda said his ministry would continue to implement policies and strategies aimed at attracting investments, improving the legal framework, enhancing exploration and opening up new mines and promoting safe and sustainable mining methods.
Zimbabwe has more than 60 extractable mineral deposits, but less than 10 are currently being commercially exploited.
“Exploration is key for the development of the mining sector. In that regard, the ministry prioritises the release of more ground for exploration.
“To date, we have 38 active exclusive prospecting orders (EPOs) across the country, which give mining firms rights to prospect for minerals.
“This will lead to the opening of new mines and expansion of existing mining operations,” he said.
Soon after the coming into power of the Second Republic in November 2017, President Mnangagwa declared that “Zimbabwe is Open for Business”, which has seen investors from across the globe scrambling for investment opportunities in the country.
“We are confident that the mining sector will continue on a growth trajectory and we will meet our targets.
“The growth of the mining sector is set to be driven by the opening of new mines such as the Dinson Iron and Steel project, Sabi Star and Zulu Lithium, among others.
“Expansion of existing mines include projects by Pickstone Peerless Mine, Zimplats, Mimosa and Unki, among others as well as beneficiation and value addition of projects by Dinson Iron and Steel Company and the establishment of a base metal refinery by Zimplats.
“The country is also witnessing a number of various lithium processing plants being established as a result of the ban on raw lithium exports.”
This comes as Zimbabwe achieved the national target of growing the mining industry into a US$12 billion industry by the end of this year.
Minister Soda said the attraction of investment in line with the “Zimbabwe is Open for Business” mantra would be achieved through marketing the country’s potential through participation in conferences such as Investing in Africa Mining Indaba, Africa Down Under and China Mining Expo, among others.
“However, an evaluation would be required at the conclusion of each and every event to ascertain the impacts.
“Furthermore, the ministry would expedite finalisation of the Cadastre which is expected to increase transparency in the management of mining titles and assist in curtailment or elimination of human-induced errors leading to disputes,” said Minister Soda.
The mining cadastre system is a computer-based system for mining title management expected to enhance transparency and accountability in the administration of claims in the sector.
Last December, the Government allocated $1,6 billion towards finalisation of the mining cadastre system across the country’s nine provinces following its successful implementation in Manicaland Province in July 2021ss.
Commenting on safe and sustainable mining methods, the minister said it was disheartening to note that the mining sector had recently been affected by unfortunate accidents, particularly in the small-scale mining sector.
“The ministry will continue to advocate for safe mining methods through the relevant departments and ensure that all mining activities comply with the law.
“In the same vein, the Responsible Mining Audit, which was launched this year by His Excellency, the President in May 2023 will be continued regularly going forward.
“This will ensure mining operations adhere to the country’s laws and statutes,” said Minister Soda, adding that the Government will also enforce the implementation of the Minamata Convention including alternative mineral processing methods that do not use mercury.
In line with the National Development Strategy and the Africa Mining Vision, the Government will continue pushing for local mineral beneficiation and value addition.
“In that regard, the Government, through the Ministry banned the export of all raw base minerals to ensure miners process their minerals before export.
“This was done through the promulgation of Statutory Instrument 5 of 2023 and Statutory Instrument 57 of 2023, which banned the export of unbeneficiated base mineral ores and unbeneficiated lithium respectively.
“Furthermore, the Government also banned the export of raw granite.
“These measures have seen miners investing in the establishment of processing plants, not only for lithium but also other minerals like granite,” he said.
-herald
