‘Mines Bill to be game changer’
Members of the Parliamentary Portfolio Committee on Mines and Mining Development and stakeholders at a capacity building workshop to unpack the Mines and Minerals Bill at a Bulawayo hotel yesterday
Nqobile Bhebhe, Senior Business Reporter
THE revised Mines and Minerals Amendment Bill has the potential to be a game changer in the sector as it sets out commendable terms for investors seeking to exploit strategic minerals while protecting interests of affected communities.
This emerged during a stakeholder capacity-building meeting hosted by the Parliamentary Portfolio Committee on Mines to unpack the contents of the Bill, which began in Bulawayo yesterday.
Committee chair, Edmund Mkaratigwa, said the Bill seeks to repeal the existing parent mining law and align it to national and international developments while tackling challenges affecting the sector and its linkages throughout the value chain.
“Critical issues already provided in the Bill, which we will grapple with during this period revolve around the recognition of artisanal and small-scale miners, the farmer-miner disputes, environmental, health and safety issues,” he said.
Also covered are issues to do with transparency in the licensing regime of mining titles, recognition of provincial mining directors, and devolution of mining sector administration royalty, equality and equity of mining fees across provinces and local authorities
Mkaratigwa said under Schedule 2 of the Mines Bill, nine minerals have been explicitly identified as strategic and these include diamonds, rare earth minerals, lithium, copper, nuclear energy source materials such as uranium; mineral oils, gaseous hydrocarbons, coal and nickel.
“Nonetheless, gold, chrome, iron and the platinum group metals have been excluded from the list of strategic minerals yet they have such a magnanimous impact on the economy and social well-being of our people,” he said.
Permsec Mines and Mining Development Mr Pfungwa Kunaka
“Under the US$12 billion policy for the mining sector, gold is ranked number one in terms of its overall contribution with the set share being US$4 billion. This is followed by the platinum group of metals (PGMs) targeted to contribute US$3 billion.
“A target of one billion was set for chrome/iron/steel. So, these minerals alone are expected to contribute a total of US$8 billion out of the 2023 US$12 billion target. It surprises me that the minerals are not part of those classified among the strategic minerals.”
However, he said the bill set conditions for investors who seek to exploit strategic minerals. Part of the conditions is that the State and affected communities should have a defined interest or stake in the exploitation of these minerals.
“This is clearly set out in Clause 6(4)(b) of the Bill and this resonates well with Section 13 (4) of the Constitution which says: ‘the State must ensure that local communities benefit from the resources in their areas’,” said Mkaratigwa.
He said the drafters of the Bill must be commended for giving effect to Section 13(4) of the Constitution although the committee must make sure that the extent of these benefits is implementable so as to reduce natural resource-related grievances among communities where mining is taking place.
Mines Parliamentary Portfolio Committee chairman, Edmund Mkaratigwa
“We have throughout this Parliament grappled with demands for communities to derive meaningful benefits from resources being extracted from their communities. Let us take this opportunity seriously and also reflect deeply,” said Mkaratigwa.
He acknowledged that there is limited time to review the bill but urged legislators to ensure that it is passed within set timelines.
“As the chairperson of the Portfolio Committee, I was constantly under pressure to deliver on this Bill and today I am glad that the Bill is finally with us.
“This is a positive step and we don’t have much time and effectively we have to be workhorses so that we meet our set timelines and deliver in line with the legislative agenda for this Parliament and this Parliamentary Session,” said Mkaratigwa.
Commenting on the bill, Chamber of Mines of Zimbabwe’s chief executive, Dr Isaac Kwesu, said while they appreciate that most of their inputs are captured in the bill, players in the mining sector need sufficient time to review the document.
Members of the Parliamentary Portfolio Committee on Mines and Mining Development and stakeholders at a capacity building workshop to unpack the Mines and Minerals Bill at a Bulawayo hotel yesterday
“We are pleased that a number of our inputs have been incorporated in the Bill. However, we feel that there is no sufficient time for us and other players to thoroughly review the bill. Our legal side of the chamber is seized with the review process,” he said
Dr Kwesu said after the review, the chamber will give a detailed report adding that a quick review noted several areas for improvement before it becomes an Act.
The Mines and Minerals Act has stood as the principal law governing the mining industry and it anchors other decisions around other mining laws such as the Gold Trade Act and the Precious Stones Trade Act.
Subsequent amendments to these laws were therefore put on hold awaiting this Bill to be disposed of.
“Effectively, it becomes very imperative that we put our shoulder to the wheel and make a law that will have a positive impact on the current generation as well as our posterity,” said Mkaratigwa.
“Imagine how many years have been taken before this Bill is finalised and take a cue on how important it is for us to make this law the best and acceptable the first time it is presented in the House for consideration and to His Excellency the President for his assent,” he said.-chronicle.cl.zw
