Zimbabwe: Govt Issues Warning to Mining Companies

26 March 2020

Mining title owners who owe Government inspection fees and any related mining rights dues will not be able to export their minerals as Government moves in to recover its money.

The Ministry of Mines and Mining Development is owed "huge sums of money" from non payment of inspection and other access service charges.

This has resulted in Government failing to realise due revenue from rich mineral deposits that abound in the country.

In some cases, some mining title owners have chosen to just renege on settling their obligations as Government has previously reneged on making some follow ups.

However, there appears to be a change in strategy with Government this week issuing a warning that those not in good standing will not be able to renew their export papers.

The statement was signed off by Mines and Mining Development Permanent Secretary Mr Onismor Mazai-Moyo.

". . . the Ministry is owed huge sums of money in terms of inspection fees and other service charges," said the Ministry in a statement.

"In terms of the provisions of the Mines and Minerals Act Chapter 21:05, it is the obligation of every mining title holder to timeously inspect and renew their mining rights.

"With effect from 1 May 2020 the Ministry of Mines and Mining Development will no longer be providing support services like issuance of export permits and all movement permits amongst other key services to clients that are not in good standing with the Ministry," reads the statement.

The Ministry also reminded its stakeholders of legal provisions that allow for the forfeiture of such unservice mining assets.

However, it appears Government is not yet looking at exercising these rights, possibly in the hope of keeping miners at work and producing.

"The Mines and Minerals Act provides for forfeiture of mining titles due to failure to obtain an annual Inspection Certificate.

"The Ministry of Mines and Mining Development is appealing to its valued clients to inspect and renew their mining rights," appealed Government.

Mining is one of the key pillars with which Government seeks to kick-start the economy and grow into upper middle income status as set by President Mnangagwa.

To date, the Ministry is pursuing a 2023 milestone by which it seeks to grow sector exports from US$2,7 billion in 2017 to US$12 billion.

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