Zimbabwe to insist on ESGs compliance before issuing mining tittles
Government will next year promulgate regulations that will compel players in the mining sector to disclose their Environmental, Social and Governance (ESG) frameworks before a mining title is issued.
The planned move, which is in line with international best practices, is aimed at addressing ESG concerns due to mining activities’ impact on climate change.
As a result of unsustainable mining, environmental concerns such as land degradation, environmental pollution due to dumping of hazardous substances and emission of gases and chemicals have led to global warming.
Speaking after officiating at the 11th Mining Media Awards ceremony in Harare on Friday evening, Mines and Mining Development Deputy Minister, Dr Polite Kambamura noted: “Presently the country does not have legislation that enforces mining firms compliance to ESG.
“Currently, there is no policy that enforces companies to comply with ESG and that’s why the Government is thinking of coming up with a policy which speaks to ESG.
“People should be cognisant of the environment in which they are operating in, so we are considering coming up with a prerequisite requirement to issues of mining title which will be an ESG that will speak to the environmental, social and governance issue of a company,” he said.
Dr Kambamura said in the ESG plan a company should also highlight how it would respond to community needs and expectations from the Government.
In the past, he said, the Government has seen investors just going into the industry without coming forward to show how they intend to respond to corporate social issues.
“It is important that we move with global standards and how countries are responding to climate change issues, green ethics and sustainability.
“We cannot be isolated from global influences,” he said.
“Some companies are already doing very well with regards to ESG, but there are some entities who are just looking forward to quickly get returns without looking at all these aspects that surround industry.”
Other countries that have enacted ESG laws include South Africa and Zambia, among others including the United States of America.
Regarded as one of Zimbabwe’s major economic centrepieces, the mining industry accounts for 73 percent of Foreign Direct Investment, 83 percent of exports, 19 percent of Government revenue, 2 percent of formal employment and 11 percent of individual incomes.
The sector is expected to anchor the economy as authorities seek to achieve an upper middle-income society by 2030.
Zimbabwe is endowed with vast mineral deposits that include gold-platinum- diamond-chrome-coal and lithium, which has become the mineral of the future due to its global demand in promoting green energy where it is used to produce high storage batteries for electric vehicles.
In his address at the awards ceremony, Dr Kambamura said: “The mining sector is not only the backbone of our economy, but also a key catalyst for development and industrialisation. The industry sustains over 45 000 formal jobs and over 1,5 million other people who are in the informal sector or small-scale sector.
“Essentially, the President’s call for determined growth ‘Nyika inovakwa nevene vayo/Ilizwe lakhiwa ngabanikhazi balo’ serves as a powerful reminder that we must build our nation through collaborative efforts.
“The media fraternity led by our patriotic journalists continues to do a great job and marketing the mining sector, your work is incomparable as such l engaged with the principal of the Zimbabwe School of Mines so that he can offer subsidised courses for journalists to master that technical language when reporting,” he said.
Dr Kambamura said governance issues are central to the sustainability of the sector and thus at the recent Chamber of Mines of Zimbabwe in Victoria Falls, it was highlighted that ESG principles were no longer optional.
“Responsible mining is a cornerstone of the National Development Strategy 1 (NDS 1) and companies must now prioritise not for profit-only, but also the well-being of the communities in which they operate-the workers that sweat day and night for the company, and the environments that they work in,” he said.
The awards ceremony which saw journalists Raymond Jaravaza who scooped the Overall Best Mining Reporter of the Year Award, Ray Bande and Michael Magoronga, all from the country’s largest integrated media house-Zimpapers, was held under the theme, “Building strides in sustainability reporting”.
This year’s theme, Dr Kambamura said, reflects the Government’s commitment to responsible mining as well as underscoring the importance of accurate and comprehensive reporting.
“The media serves as the eyes and ears of the public, enhancing transparency and holding both corporates and the Government accountable.
“Investigative journalism plays a vital role in uncovering stories that influence policy and prompt necessary reforms such as good environmental practices,” he said.
-ebsinessweekl
