Published by the government of Zimbabwe
Business Reporter
30 April 2002
THE Ministry of Mines and Energy will soon announce new measures, designed largely to combat company closures in the mining sector.
Mines and Energy permanent secretary, Mr Nicholas Kitikiti said the ministry would shortly release the new fiscal policy through the Chamber of Mines.
He said the ministry was taking stringent measures to address mine closures.
"The new policy is basically going to address the issue of mine closures although it will also seek solutions to other problems facing the sector," Mr Kitikiti said.
The new framework would address the issue of royalties paid to the Government for the extraction of minerals.
Mr Kitikiti said the new fiscal framework would set penalties to miners who did not utilise their mining claims.
"We are coming up with a policy where under utilised mining claims can be forfeited by the Government and we will also be charging escalating fees to claim holders," Mr Kitikiti said.
Last year the ministry set up a $500 million dollar facility as an incentive for small scale miners.
The Minerals Marketing Corporation of Zimbabwe (MMCZ) has also come up with a scheme that is aimed at helping smallscale miners and has already secured $5 million to kick start the programme. Mr Kitikiti said the new mining framework's major aim was to enhance the mining sector's competitiveness both locally and internationally.
The mining sector plays a pivotal role in the country's economic development and the sector generates about half the country's foreign currency earnings and contributes six percent of the Gross Domestic Product (GDP).
The industry which is a world producer of gold, chrome, nickel, asbestos, iron, coal, and platinum also employs directly about 70 000 workers.
Indigenous players have made in-roads into the sector and currently two asbestos mines are indigenously owned.
Locals own about 70 percent of asbestos mining claims. About seven of the nine coal mines in the country are owned by local investors and virtually all the copper production in the country is now in the hands of indigenous investors.
Thousands of gold panners have mushroomed around the country and the smallscale mining sector now contributes about 20 percent of national mining output.
Zimbabwe is believed to have the largest platinum reserves and the international market for this product is growing.
Mr Kitikiti said the fiscal framework would allow sharing of risks between the Government and investors to attain long term results and enhance the country's competitiveness on the international market.
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