Responsible mining audit reveals mixed findings

THE Responsible Mining Audit recently instituted by the Government into the operations of mining companies has revealed mixed findings regarding the conduct of mining companies in their operations.

According to the findings, medium to large-scale miners were found to be operating within the confines of the law while some small-scale miners have been accused of violating the country’s laws.

The initiative was conducted countrywide between May and June this year to establish if mining companies were complying with requirements relating to the submission of production returns as required by law.

Furthermore, the audit also sought to establish a framework that fosters responsible mining practices while guaranteeing the well-being of the communities and environments where mining activities are taking place.

Mines and Mining Development Permanent Secretary Pfungwa Kunaka said the Government is taking appropriate action against the miners violating expected dictates of responsible mining.

The Government has taken a decision to increase oversight over all mining activities in the country to curb malpractices.

“By and large, you find that our miners are compliant, especially the medium and large scale. We undertook the Responsible Mining Audit, which has revealed that to a larger extent, our miners are compliant, it’s in the smaller sector that you find distortions, non-compliance in some aspects such as the filing of production returns . . . if you are not complying, it means your title is at risk, we have got powers that you don’t renew when it comes to renewal.

“It’s provided for in our Mines and Minerals Act that those not in compliance with the law, there are actions we can take. The main one being to consider not renewing when you apply for renewal,” he said.

Mr Kunaka would not be drawn to ascertain the number of small-scale miners that have not been operating within the confines of the law.

“I wouldn’t have a number (non-compliant miners) per se but the general assessment that we have carried out brings us to the conclusion that it’s the small-scale mining industry that’s presenting challenges, but it’s not a hopeless situation,” he said.

The reasons behind non-compliance, Mr Kunaka said, could be a lack of awareness of the laws and capacity on the small-scale miners’ part because by providing returns, the issue is also about production statistics.

“We have provincial offices and are closer to these people and their job is now making sure that the inspections are carried out to ensure that the miners are compliant, so the structure of the ministry where it has provincial representation allows us to be on top of the situation so to speak.”

He said the submission of production returns was critical in helping the Government to understand the state of affairs in terms of entities that are actively producing and those not productively utilising their mining titles.

Where mining titles lie idle, the Government invokes the use-it or lose-it policy that gives authorities powers to seize such land for redistribution to potential productive investors.

The mining industry is central to the Government’s target of attainment of Vision 2030 where the country seeks to achieve an upper-middle-income economy.

This year, the mining industry is expected to grow by 300 percent driven by new operations, resuscitated projects, the impact of positive investor confidence due to the ideal operating environment, and the discovery of new mining claims, among other favourable factors.

Presently, the mining sector accounts for 83 percent of exports, 73 percent foreign direct investment, 19 percent of the Government’s revenues, 11 percent of individual incomes, two percent of formal employment and by 2030, the sector is expected to generate more than US$20 billion.-herald