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.