Mining Bill ringfences 9 strategic minerals

GOVERNMENT is moving towards ring-fencing nine strategic minerals to ensure that the country derives maximum benefits out of the resources that are fast gaining global significance, Mines and Mining Development permanent secretary, Mr Pfungwa Kunaka has said.

The minerals include lithium, diamonds, rare earth minerals, copper, nuclear energy source materials, mineral oils, gaseous hydrocarbons, coal and nickel.

These are classified as strategic under the revised Mines and Minerals Amendment Bill.

The Bill seeks to repeal the existing parent mining laws and align them to national and international developments while tackling challenges affecting the sector and its linkages throughout the value chain.

The Parliamentary Portfolio Committee on Mines yesterday held a public consultation meeting on the bill with various stakeholders in Bulawayo to solicit views on the bill. Stakeholders said it was imperative that the bill sails through and it becomes an act.

Speaking to the Business Chronicle on the sidelines of the public hearing, Mr Kunaka emphasised the importance of the bill, which he said will transform the mining landscape of the country.

“The proposed bill has under Section 6 a provision, which provides the minister (of mines) to declare certain minerals, which are deemed strategic. Strategic minerals in the sense that in terms of the economy and development of the country,” he said.

“So far, we have identified nine strategic minerals, they include lithium, diamonds, rare earth minerals, copper, nuclear energy source materials, mineral oils, gaseous hydrocarbons, coal and nickel.

Lithium

“We are viewing them in the terms of position they hold in international discourse, they have become so strategic. So, as Zimbabwe we need to be at the forefront to ensure that these minerals are looked at as strategic.

“The minerals have been there but in terms of positioning and significance, lithium for instance has gained much significance in the country and globally. The same applies with the oils. In Zimbabwe, it’s a new discovery,” said Mr Kunaka.

“We are looking at benefits we think should accrue to the economy and the people at large. So this section is very critical as it will pronounce the minerals as strategic.”

According to the Bill, a strategic mineral means any mineral deemed strategic by virtue of its importance to the economic, social, industrial or security interests of Zimbabwe.

If the minister, after consultation with the board, deems that any mineral is a strategic mineral, he or she, with the approval of the President, shall by order published in the Gazette, designate such mineral to be a strategic mineral and may, in like manner, revoke such declaration.

The declaration order may apply to the whole of Zimbabwe or to any specified part and may be made for a definite or indefinite period of time. It adds that any person wishing to mine such a mineral may only obtain a special mining lease or special grant.

The country holds some of the world’s largest reserves of hard rock lithium, a vital mineral in the production of clean energy technologies.

Lithium is a strategic mineral, which holds the key to the global transition to clean energy with many countries already moving towards its use in anticipation of the move to electric vehicles. This has increased demand for the mineral.

Lithium deposits have been identified in Matabeleland North and Matabeleland South, Mashonaland East, Masvingo, Manicaland, and Mashonaland Central provinces with more deposits likely to be discovered.

Oil and gas exploration firm Invictus Energy is already carrying out exploration work in Muzarabani.

Initial exploration work has been promising, and points to a significant resource, setting Zimbabwe on course to becoming an oil and gas-producing nation.

In 2020, the Zimbabwe government classified the Muzarabani project as one of the priority development projects, which can provide a significant economic benefit to the economy in pursuit of an upper middle-income economy by 2030.

Invictus-Energy

Mr Kunaka said when minerals are pronounced strategic, there are certain requirements, which come with them such as ensuring that investors are prepared to invest a certain minimum amount.

“In this case we are talking of US$100 million. There will be a requirement that investors should commit themselves to environmental protection and community-based developments in infrastructure.”

“We have other minerals such as gold and by not being declared strategic we are not saying they are not important.

“As far as our own people are concerned, particularly artisanal miners, they can still register as other minerals, even the strategic ones.”

Mr Kunaka clarified that communities who discover minerals like lithium or any other should declare these to the Government and would not be stopped from exploiting them on the basis that they are strategic.

“We have classified those nine minerals as strategic for big investors, we might discover other minerals that are also strategic in terms of the international platform, and we want the mines minister to quickly declare it strategic. That is the advantage of the bill that brings up key aspects that we have been overlooking.”

The Bill also demands transparency in the licensing regime of mining titles, recognises provincial mining directors, and devolution of mining sector administration royalty, equality and equity of mining fees across provinces and local authorities.-chronicll.zw