Government to take over unsuccessful EPOs
The Government plans to designate some of the areas covered by unsuccessful Exclusive Prospecting Orders (EPOs) as State assets, a Cabinet minister has said.
This follows a vetting exercise conducted last year after the Government suspended issuing new EPOs to curb speculative land holding and promote transparency in the mining sector, the country’s biggest source of foreign currency.
In 2023, the Government had 38 active EPOs granted.
Mining is also strategically important to Zimbabwe, employing thousands and contributing roughly 12 percent to the gross domestic product (GDP).
Zimbabwe is home to more than 60 mineral occurrences although about 10 are commercially exploited.
Mines and Mining Development Minister Winston Chitando, responding to a question during a question-and-answer session in Parliament, said the State-owned Mining Promotion Company would be responsible for exploration in the reserved areas.
“Government policy and plans are that for EPOs that did not succeed, the Government is going to take some of these areas as Government reservations, which means the Mining Promotion Company will be responsible for searching and exploring where minerals are found,” the mines minister said.
Minister Chitando said the reason EPOs were designated Government reservations and given to mining promotion companies was that in most areas, minerals were found in different geological locations.
“Some of these minerals are alluvial, which, when you mine, you find that they are not very far from the surface, but others are deep down.
“After explorations . . . it will be determined that these are alluvial deposits, and these are deposits that are deep and will need a lot of funding.
“The Government then determines who would occupy such because of the resources needed. For alluvial deposits, even small players can partake in those,” he said.
EPOs give exclusive rights to investors to search for specific minerals in an identified location and are issued for three years, although they can be renewed for a maximum of six years.
In terms of financing the Mining Promotion Company, Minister Chitando said the Cabinet allowed the company to partner with other companies in exploring for minerals but would take the lead.
“Secondly, every year, the ministry receives an allocation from the annual budget, but the annual budget cannot cater to all the needs of the responsible department,” he said.
He said EPOs, which are not reservation areas, would be opened to the public to apply for authority to explore.
Prior to the suspension of issuing new EPO licences, concerns had been raised that some EPO holders were keeping them for speculative purposes, without contributing to economic development through exploration or mining activities.
Analysts contend that allowing multiple players to explore in areas covered by EPOs would unlock significant value within the mining sector and stimulate economic growth.
This move could encourage increased investment, job creation, and foreign exchange earnings, ultimately benefiting the national economy-herald
