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Mines and Minerals Amendment Bill to Ban Foreigners from Small-Scale Mining

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Mines and Minerals Amendment Bill to Ban Foreigners from Small-Scale Mining

The government, through the Ministry of Mines and Mining Development, is set to introduce legislation that will preserve the small-scale mining sector for locals and ensure that Zimbabweans benefit from the country’s vast resources.

By Ryan Chigoche

Minister Winston Chitando confirmed this while speaking at the Zimbabwe Miners Federation (ZMF) conference at Mine Entra 2024 in response to the Federation’s President, Henrietta Rushwaya.

At the event, Rushwaya presented several requests to the government on behalf of small-scale miners. These included concerns over seeded claims from ZIMASCO that were allocated a few years ago but have yet to be granted, delays in the renewal of special grants, and considerations regarding exclusive prospecting orders. She argued that small-scale miners should be allowed to peg claims for at least three months before these opportunities are opened to foreign investors.

One notable request was the call for small-scale mining to be reserved for local indigenous Zimbabweans in areas of 50 hectares or less. This comes amid an influx of foreign nationals in small-scale mining, leaving locals with limited opportunities.

Speaking at the conference, Minister Winston Chitando said that the forthcoming Mines and Minerals Amendment Bill will address these issues.

“In the amendment of the Mines and Minerals Act, small-scale miners will now be officially recognized, and the sector will be protected and reserved for local miners. Currently, there is no legal framework reserving small-scale mining for the local mining sector,” Chitando explained.

The Minister also noted that the Ministry is finalizing a US$10 million facility for small-scale miners in chrome and gemstones to enhance their operations and enable them to compete with foreign nationals.

Foreign companies have increasingly dominated Zimbabwe’s mining industry, especially in the chrome and gemstones sub-sectors. In recent years, China has become a major player in the country’s mining sector, drawn by Zimbabwe’s abundant mineral wealth, including lithium, diamonds, chrome, and gold. Backed by substantial financial resources and support from the Chinese government, these firms have secured many mining concessions, often surpassing Western companies in establishing operations.

Some Chinese operators have entered the country covertly, dominating the small-scale mining sector intended for locals. In some cases, they use their financial power to take over claims previously owned by locals who may have stopped operations due to financial constraints.

Zimbabwe’s economic challenges and isolation from Western financial institutions have made it increasingly dependent on Chinese investment, further entrenching foreign control in the sector. Chinese companies often operate with minimal local ownership, relying heavily on Chinese labour and equipment, thereby limiting the involvement of local Zimbabweans.

For years, the ZMF has argued that small-scale mining should be reserved for locals, with foreigners barred from operating on land of 50 hectares or less. The Federation has also requested that small-scale miners be given priority in pegging claims before they are opened to foreign investors.

ZELA Pledges Support for ASM ESG Compliance, Community Development, and Policy Advancements

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ZELA Pledges Support for ASM ESG Compliance, Community Development, and Policy Advancements

The Zimbabwe Environmental Law Association (ZELA) has committed to supporting the Artisanal and Small-scale Mining (ASM) sector, the government, and large-scale mining companies through technical assistance aimed at achieving Environmental, Social, and Governance (ESG) compliance, community development, and national goals.

By Rudairo Mapuranga

Speaking at the Zimbabwe Miners Federation (ZMF) Small to Medium Miners Conference, held at the Zimbabwe International Exhibition Centre (ZIEC) during the Mining Engineering and Transport Expo (Mine Entra), ZELA’s Tafara Chiremba highlighted the organization’s advocacy for policy finalization, environmental compliance support, and tax incentives. He also praised government efforts to promote responsible mining and ASM policies.

Chiremba emphasized ZELA’s role in providing technical assistance to key stakeholders, including the Parliament of Zimbabwe, to address resource gaps in the sector. ZELA also supports the ZMF and small-scale miners by building capacity in health and safety, equipment provision, and market access through regional and international programs like AfricaMaVal and the OECD.

“We are ready to work closely with the ASM sector, government, and large-scale miners to provide technical assistance and ensure ESG compliance in mining. We aim to complement government and private sector efforts to promote national development. We have already provided support to several stakeholders, including the Parliament of Zimbabwe, to address resource gaps.”

Chiremba also urged the government to consider seeking support from the Intergovernmental Forum on Metals, Mining, Minerals, and Sustainable Development and to offer more tax incentives to ASM players, aligning them with their environmental compliance efforts.

ZELA has long recommended that the national budget allocate resources to the Ministry of Mines to strengthen compliance. On community development, ZELA highlighted ASM’s potential to create jobs and drive local progress, commending government initiatives to formalize the sector.

Chitando Reveals Alarming Audit Findings, Warns of Strict Action

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Chitando Reveals Alarming Audit Findings, Warns of Strict Action

The Minister of Mines and Mining Development, Hon. Winston Chitando, has revealed alarming findings from the yet-to-be-released Responsible Mining Initiative audit. He warned that non-compliant miners will be shut down in the next audit, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking at the Zimbabwe Miners Federation (ZMF) Small-Scale to Medium-Scale Conference, held at the Zimbabwe International Exhibition Centre (ZIEC) during the Mine Entra 2024, Minister Chitando disclosed troubling findings from the latest Responsible Mining Initiative audit.

Minister Chitando highlighted significant non-compliance within the sector, including unregistered entities, entities not registered with the Zimbabwe Revenue Authority (ZIMRA), and operations lacking Environmental Impact Assessments (EIAs).

“We will eventually make public the findings of the Responsible Mining Initiative. However, the results from the last audit were disappointing, highlighting issues across the sector, not just in small-scale mining. There were cases of unregistered entities with ZIMRA, entities outside the tax system, and some serious cases of mining operations lacking Environmental Impact Assessments (EIAs).

“When the next Responsible Mining audit is conducted, teams will have clear instructions, if they find entities unregistered with ZIMRA, they will be closed, if they find operations lacking an EIA, they will also be closed,” he said.

Minister Chitando also noted that to enforce responsible mining, amendments to the Mines and Minerals Act would address many of these issues, including giving the Ministry the authority to repossess mines that do not adhere to responsible mining practices.

“To enforce responsible mining, it’s crucial to amend the Act, including provisions to repossess mining titles where violations occur. Responsible mining that adheres to national laws is essential,” he said.

Mining has long been a cornerstone of Zimbabwe’s economy, providing valuable resources, employment, and economic growth. However, the need for responsible mining practices has become increasingly apparent. The Responsible Mining Audit Initiative addresses this need by holding mining companies accountable for their operations, ensuring they benefit the nation and its people.

One of the initiative’s primary benefits is the mitigation of environmental impacts from mining operations. Responsible mining practices improve ecological sustainability by reducing water and air pollution, protecting biodiversity, and minimizing land degradation. This ensures the preservation of natural resources, benefiting local communities and future generations.

The initiative also emphasizes the importance of engaging with local communities. Responsible mining companies will implement social programs that contribute to the well-being and development of these communities. Investments in infrastructure, healthcare, education, and the creation of sustainable economic opportunities are expected to improve the quality of life for community members, fostering a stronger bond between mining companies and local residents.

Worker safety is a top priority under the new initiative. By implementing robust occupational health measures and addressing concerns such as tuberculosis, pneumoconiosis, and mercury poisoning, the initiative aims to create a safer working environment for miners. This focus on health and safety not only protects workers but also enhances the overall well-being of their families and communities.

Transparency and good governance are crucial components of the Responsible Mining Audit Initiative. By adhering to these principles, mining companies can build trust with local communities, government authorities, and other stakeholders. This transparency reduces the risk of mineral leakages and ensures that mining benefits are equitably distributed, contributing to a fairer and more just mining sector.

The initiative also promises significant economic benefits. Responsible mining practices will generate tax revenues, foster local procurement, and create employment opportunities for both skilled and unskilled workers. These economic gains will have a multiplier effect, leading to the growth of supporting industries and overall economic prosperity in the region.

Adopting responsible mining practices enhances the reputation and competitiveness of Zimbabwean mining companies on both domestic and international fronts. This improved reputation attracts more investment, partnerships, and collaborations with reputable global companies, further strengthening the mining sector’s role in the country’s economic development.

77 Companies Exhibit for the First Time at Mine Entra

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77 Companies Exhibit for the First Time at Mine Entra

The Zimbabwe International Trade Fair (ZITF) Company has attracted 77 new exhibitors to its 27th edition of Mine Entra. The event has seen a notable increase in participation both locally and internationally, Mining Zimbabwe reports.

By Rudairo Mapuranga

Speaking at the Mine Entra Conference and official opening for 2024, held under the theme “Unearthing Success: The Mining Value Chains, Innovation, and Industrialization Nexus,” ZITF Board Chairman Busisa Moyo highlighted the event’s expansion, particularly in attracting new exhibitors from sectors linked to mining and industry, underscoring the interconnectedness of mining value chains.

“This year, we are pleased to host 255 exhibitors, 77 of whom are exhibiting for the very first time. Many of these exhibitors are from the intersection of industry and mining, representing the confluence of these two sectors of our economy. This year’s exhibition has recorded higher participation both locally and internationally. With your support, we look forward to building on this success to achieve an even larger and more impactful event next year,” Moyo stated.

This year’s Mine Entra theme reflects a commitment to fostering collaboration, knowledge exchange, and networking. The event serves as a pivotal platform for the mining industry to align with sectors such as engineering, transport, and other industry players, laying the groundwork for a future in which mining supports not only the economy but also prioritizes environmental sustainability and community well-being.

A crucial aspect of the event is the Responsible Mining Audit Initiative, which aims to reduce the environmental impact of mining operations and promote adherence to sustainability standards. This multi-stakeholder initiative encourages the adoption of responsible practices across the mining ecosystem.

The conference also highlights advancements in emerging technologies, such as automation, digitization, and artificial intelligence, as essential tools to overcome challenges like low productivity and outdated equipment. MineEntra 2024 aims to support local and regional companies in adopting these innovations to enhance operational efficiency and competitiveness.

In addition to technological advances, Mine Entra 2024 seeks to attract both local and international investors, showcasing Zimbabwe’s rich mineral resources and investment potential across the mining value chain. The event focuses on unlocking capital for critical projects, including exploration, infrastructure, and refining, in alignment with national goals of driving economic growth through modernized mining operations.

All primary producers in Zimbabwe’s mining sector share a common aspiration to become fully integrated, opening significant opportunities for value addition and beneficiation. This positive shift is a testament to the strength and adaptability of Zimbabwe’s mining industry, which continues to prioritize transformation in the face of economic challenges.

There is an urgent need to process raw minerals into value-added products, which would generate employment, stimulate economic growth, reduce reliance on imports, and help buffer against fluctuations in global commodity prices. Achieving these objectives will require innovation, including the adoption of new technologies and sustainable practices.

The collaborative efforts and partnerships formed during Mine Entra 2024 are expected to chart a path for Zimbabwe’s mining industry well into the future. With the active involvement of government, industry stakeholders, and financial partners, Zimbabwe is positioning itself as a hub for sustainable, innovative, and value-driven mining, setting a legacy for future generations to build upon.

Girl Child Should Explore Careers in Mining, Says Miss Ncube

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Girl Child Should Explore Careers in Mining, Says Miss Ncube

The mining industry is a cornerstone of economic growth and technological advancement, playing a vital role in shaping the world we live in today. It is therefore important for teens, especially girls, to cultivate a solid interest in the industry, as it will impact future generations, said Miss Teen of the Universe Africa, Victoria Ncube.

By Rudairo Mapuranga

Speaking to Mining Zimbabwe on the sidelines of the Mining Engineering and Transport Expo (Mine Entra), Miss Ncube noted that, despite an optimistic outlook for Zimbabwe’s mining industry, many teens remain unaware of the diverse and exciting opportunities it offers.

She emphasized the importance of thinking beyond their age and contributing to the country’s economy. One way to do this, she said, is by learning about and understanding the entire mining value chain.

Miss Ncube highlighted that teens, especially young women, can empower themselves by engaging in technological research and finding ways to add value to Zimbabwe’s minerals.

“I want to encourage young girls and women to pursue careers in mining, as it is one of Zimbabwe’s leading industries and a major driver of our economy. Mining was once dominated by men, but today, women can excel in this field just as much as men. My interest in this industry deepened when I met with women in mining.

“Although I am new to the field and still learning, I have started taking classes to understand it better, and I encourage others to do the same. Mining is the way forward,” she said.

Recently, Miss Ncube travelled to India to compete for the title of Miss Teen of the Universe, where she earned the title of Miss Teen of the Universe Africa, making her an ambassador for the African continent.

As part of her advocacy, she is committed to showcasing Africa’s rich mineral resources. Her national costume was inspired by the mining industry, crafted from yellow fabric to symbolize Zimbabwe’s wealth in minerals, with decorations representing the gold, emeralds, diamonds, and coal mined in the country.

Local Mining Suppliers Urged to Step Up and Support Sector Amid Geopolitical Shifts

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Local Mining Suppliers Urged to Step Up and Support Sector Amid Geopolitical Shifts

As the global mining landscape continues to evolve amid geopolitical shifts, local suppliers facing increasing pressure have been urged to enhance their capabilities and remain competitive in order to support the local mining sector.

By Ryan Chigoche

These issues dominated discussions at the Mine Entra suppliers forum, held under the theme “Maximizing Contribution to the Mining Industry Through Local Content.”

This comes after the Chamber of Mines Zimbabwe revealed that the local manufacturing sector contributes just 15% to the mining sector from the US$2.1 billion being spent on suppliers.

At the recent MineEntra 2024 conference, Pfungwa Kunaka, the Permanent Secretary in the Ministry of Mines and Mining Development, emphasized the critical need for local suppliers to innovate and adapt.

“The mining industry must capacitate suppliers to build resilience in the face of geopolitical changes that have dramatically altered the global landscape. We must ensure that we have a local quota supply, however, suppliers must be innovative. The banks must provide affordable capital. We need to be proactive and mitigate risks. Suppliers must heed complaints regarding quality, lead time, and capacity to produce in the face of imports,” Kunaka stated.

Geopolitical situations significantly affect the supply chain of the local mining sector by disrupting access to essential imported materials and equipment, altering trade policies, and impacting market access. Political instability can lead to transportation disruptions and increased costs, while changes in trade agreements or tariffs can either hinder or enhance local competitiveness. Additionally, geopolitical tensions can deter foreign investment, limit funding for operations, and strain financial health, ultimately affecting the overall resilience and efficiency of local suppliers in the mining industry.

Despite the urgency of his message, local suppliers are grappling with significant challenges. Frequent breakdowns and high maintenance costs, combined with a struggling economy, hinder their ability to retool effectively. Many companies rely on outdated techniques due to insufficient research and development funding, as they barely manage to stay afloat.

Local suppliers often lack the capacity to meet the demands of mining companies, primarily due to antiquated machinery and a scarcity of working capital for essential raw materials and consumables. Consequently, local products struggle to compete in the marketplace, facing high prices exacerbated by the cost of doing business and the rising expenses associated with ZESA.

Furthermore, the high costs imposed by ZESA, along with fluctuating monetary policies, further complicate the situation for local suppliers. Without substantial reforms and investments in innovation, the local mining supply sector risks being overshadowed by imported alternatives, undermining the potential for sustainable growth within the industry.

For the mining sector to thrive, a concerted effort must be made to empower local suppliers, fostering a resilient and competitive environment that can withstand global pressures.

Factor Your Power Increase Fears into Your Plans: ZESA Tells Miners

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Factor Your Power Increase Fears into Your Plans: ZESA Tells Miners

The Zimbabwe Electricity Supply Authority (ZESA) has urged miners to incorporate the potential for electricity price hikes into their operational plans, as the utility continues to advocate for cost-reflective tariffs.

By Ryan Chigoche

For years, miners in Zimbabwe have expressed concerns about the high cost of electricity, which has become a significant burden on their operations. The escalating electricity prices are particularly alarming, as they directly impact the profitability of mining ventures.

At day two of Mine Entra, ZETDC General Manager Abel Gurupira addressed the audience attending a conference, warning miners to prepare for upcoming power tariff increases. He emphasized that these hikes are preferable to the frequent load shedding that has plagued the industry.

“We are solely reliant on thermal power at 12 cents, and that’s the same tariff at which we generate our power. If you add 14% to 12 cents, the costs will show that we are struggling, achieving a technical loss of 20% due to ageing equipment.”

Gurupira elaborated on ZESA’s financial challenges, stating, “US dollar obligations per month total US$92 million against the US$55 million we collect, with only US$45 million actually collected, leaving the balance payable at the interbank rate. You are not exempt from load shedding. Prepare for an increase in tariffs.”

To mitigate the ongoing power crisis, ZESA has initiated a series of short, medium, and long-term strategies. Recently, the authority has made strides by incorporating Independent Power Producers (IPPs) into the grid, adding 25 MW of capacity. Additionally, miner Zimplats has launched a 35 MW solar plant, contributing to the diversification of energy sources alongside other projects in the pipeline.

As part of a broader effort to enhance efficiency, ZESA is undergoing a restructuring process aimed at eliminating redundancies. This move is intended to streamline operations and improve service delivery. Furthermore, there is an increasing involvement of the private sector in Zimbabwe’s power industry, signaling a shift toward more collaborative solutions to the electricity crisis.

Despite these efforts, the future remains uncertain. Miners are encouraged to proactively assess their energy strategies in light of the anticipated price adjustments and continue advocating for sustainable energy practices.

AMSZ to Attend Mine Entra to Enhance Collaboration and Industry Alignment

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AMSZ to Attend Mine Entra to Enhance Collaboration and Industry Alignment

One of the biggest professional mining organisations, the Association of Mine Surveyors of Zimbabwe (AMSZ) will attend this year’s Mining, Engineering, and Transport Expo (MineEntra) as part of its agenda to collaborate with the industry and align with government objectives for economic development, Mining Zimbabwe reports.

AMSZ spokesperson Stewart Gumbi confirmed the association’s plans to participate in MineEntra. As Zimbabwe’s premier mining trade exhibition, MineEntra is a key platform for industry professionals to connect, collaborate, and align with the sector’s evolving demands. AMSZ sees the event as a critical opportunity to expand its network, engage with new technologies, and explore areas for professional growth.

According to Gumbi, AMSZ is attending MineEntra with clear goals in mind:

“We aim to collaborate with other associations to improve ourselves as surveyors, explore market opportunities, and align with the country’s objectives for economic prosperity,” he said.

For AMSZ members, the expo offers a space to exchange ideas, share best practices, and gain insights from counterparts within the mining community. By connecting with other professionals, AMSZ hopes to foster a stronger collaborative environment that benefits not only surveyors but the mining sector as a whole.

At MineEntra, AMSZ members will also have the chance to familiarize themselves with the latest innovations and industry trends. With the increasing need for accuracy and efficiency in surveying operations, exposure to advanced technology is essential for staying competitive and effective in their roles. The association believes that understanding these developments will better equip Zimbabwean surveyors to contribute to national objectives, particularly in advancing mining’s role in economic development.

Furthermore, AMSZ’s engagement at MineEntra aligns with its mission to advocate for high standards in mine surveying practices. The association remains committed to ensuring that its members operate with the highest levels of expertise, integrity, and adherence to global standards.

Mines Losing Half of 25% ZiG Export Proceeds to Exchange Rate Disparities

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Mines Losing Half of 25% ZiG Export Proceeds to Exchange Rate Disparities

Mining companies are losing half of their 25% local currency surrender portion due to exchange rate disparities, according to the 2025 Mining Industry Prospects report, which incorporates findings from the State of the Mining Industry Survey.

By Rudairo Mapuranga

The report highlights that the 25% local currency surrender portion is converted at the official exchange rate, while actual input costs are based on the parallel market rate, often double the official rate. This mismatch in rates creates a significant financial loss for mining companies, effectively acting as a tax on exporters’ gross proceeds.

“Survey findings show that respondent mining executives were losing almost half of their mandatory 25% surrender portion of export proceeds due to exchange rate disparities. They further indicated that the 25% surrender portion is liquidated at the official exchange rate, while actual input costs are valued at the parallel market rate, which in some instances is double the official rate. The loss arising from the parallel market premiums is a direct cost and is akin to a tax on exporters’ gross proceeds,” the report states.

Protecting miners from such losses due to unstable monetary policies is crucial, as these policies expose them to foreign exchange risks.

The current 75/25 foreign currency retention policy hinders mining sector growth, failing to meet demands for an 80% retention rate, which would better support miners’ sustainability.

The impact of reduced forex retention goes beyond monetary policy, affecting various economic sectors. Limited foreign currency availability can restrict import-dependent industries, leading to supply shortages and price increases. Furthermore, the depreciation of the ZiG against major currencies can erode purchasing power and reduce consumer confidence.

To address these challenges, the government must pursue a balanced approach that tackles immediate issues while implementing long-term structural reforms. Enhancing export competitiveness and fostering a conducive business environment is essential for the mining sector’s resilience and growth.

Local Manufacturing Sector Contributing Only 15% to the Mining Sector – Chamber

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Local Manufacturing Sector Contributing Only 15% to the Mining Sector – Chamber

The local manufacturing sector is contributing just 15% to the mining sector. The Chamber of Mines Zimbabwe (CoMZ)’s 2023 State of Mining Industry Survey revealed that out of the US$5.4 billion in revenue generated, approximately US$2.1 billion was spent on suppliers. However, only 15% of that expenditure went to local suppliers, with the bulk directed towards imports.

By Ryan Chigoche

Local manufacturers in Zimbabwe are predominantly small-scale, often characterized by limited resources and capacity. Many of these businesses struggle to compete with larger firms and foreign imports due to outdated technology and machinery. Operating with obsolete equipment not only hampers their efficiency but also affects the quality of their products, making it difficult to meet the standards required by the mining sector.

Additionally, these manufacturers face challenges such as lack of access to financing, which limits their ability to invest in modernization or expand their operations.

Speaking at the Mine Entra 2024 Mine Industry Suppliers Forum this morning, CoMZ CEO Isaac Kwesu acknowledged the various challenges local suppliers face but called on them to offer cost-competitive and quality products.

“I’m fully aware that this meeting comes at a time when our suppliers are facing several challenges, chief among them foreign currency shortages, high cost structures, and competition from imports. This situation has limited the capacity of local suppliers to meet mining companies’ demands. To enhance local content in the mining industry, suppliers should continue to strive to improve the quality of products, as well as cost and delivery lead times, to tap into this huge opportunity,” Kwesu said.

Kwesu added that the Chamber is actively engaging authorities to resolve all the bottlenecks currently affecting suppliers and the mining industry at large.

“We have also taken a deliberate approach to enhance local content in the mining industry,” he stated.

Also speaking at the forum, the Permanent Secretary in the Ministry of Industry and Commerce, Thomas Wushe, emphasized the need for a proper legal framework for the local content strategy to succeed, highlighting the importance of focusing on the mining sector.

“Mining is the leading GDP earner, so we must focus on this important sector, implementing the knowledge that we have as a country. For the local content strategy to be successful and improve from the current 15%, there is a need for a proper legal framework. However, before we implement the policies, local suppliers must also be ready for the amount of work that will be coming their way. Banks must also play their part and support the sector,” Wushe said.

The Chamber recognizes the importance of suppliers in the mining value chain and continues to lead efforts to promote the use of local factors of production.

In this drive, the Chamber has a JSP Committee that spearheads the strengthening of linkages between suppliers and the mining sector. To date, they have achieved key milestones currently being implemented by mining houses through Local Enterprise Development (LED) and supplier development programs.

The committee consists of representatives from manufacturing companies, including the Confederation of Zimbabwe Industries (CZI), Zimbabwe National Chamber of Commerce (ZNCC), and the Bankers Association of Zimbabwe (BAZ), as well as suppliers of other services and procurement executives from mining companies.

The Chamber is also working closely with the government to align mining industry initiatives with the country’s local content strategy through the Local Content Implementation Framework adopted by the government last year.

Additionally, the Chamber has submitted proposals to the Draft Economic Empowerment Bill, which is closely linked to the local content strategy, with proposals focused on local content and community development.

The suppliers forum was held under the theme “Maximizing Contribution to the Mining Industry Through Local Content.

The purpose of the forum was to enhance linkages between mineral producers and the upstream sector, which remains a critical component of the mining industry value chain.

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