Ten Reasons Why Zimbabwe Should Ban Foreign Mining in the ASM Sector
Local players in the mining small-scale mining sector have been advocating for the government to scrutinize the nature of investments that foreigners intend to make in the mining sector, emphasizing that the Artisanal and Small-scale Mining (ASM) sector should be reserved for local people.
By Rudairo Mapuranga
The issue of foreign involvement in Zimbabwe’s artisanal and small-scale mining (ASM) sector has become increasingly contentious, with the story we ran about banning of all foreigners in the small-scale gold mining getting a staggering 30,000 views on debut.
Zimbabweans concurred with calls getting louder. This sector, a vital part of the country’s economy, is primarily intended to benefit local communities and citizens. However, the participation of foreign nationals in this sector has raised significant concerns.
Here are ten reasons why foreign nationals should not be permitted in Zimbabwe’s ASM sector in the new Mines and Minerals Act.
Preservation of National Sovereignty
Allowing foreign nationals to participate in ASM threatens Zimbabwe’s sovereignty over its natural resources. ASM is a sector meant to empower local communities, and when foreign nationals take control, it compromises the nation’s ability to manage and benefit from its resources.
According to Zimbabwe Miners Federation (ZMF) Mashonaland West Province Chairman Timothy Chizuzu, foreigners should not be allowed anywhere near small-scale mining. Instead, they should focus on exploration and ensure that their mining operations are world-class, allowing junior mining professionals to gain valuable experience from the activities taking place.
“I strongly believe that small-scale mining should be reserved for citizens of this country, not foreigners. While it’s more acceptable to witness our own citizens mining and perhaps struggling with land management, it is deeply concerning to see foreign entities mining irresponsibly, degrading our land, and leaving behind unrehabilitated pits that could cause lasting harm. Often, these foreign operators disappear, leaving us with the consequences,” Chizuzu said.
Economic Displacement of Local Miners
Foreign nationals often have more resources and capital compared to local small-scale miners. Their involvement in ASM can lead to economic displacement, where local miners are pushed out of business due to the competitive advantage held by foreign entities.
“Chinese nationals, because they have money, always come and ensure that artisanal miners benefiting from the country’s free laws are displaced from their areas. It is something that is worrying. We have seen miners losing their areas of operations to foreign miners who can bribe their way in; we don’t want them near the artisanal mining industry,” Wayne Mudamburi, the President of the Association of Junior Mining Professionals of Zimbabwe (AJMPZ), said to Mining Zimbabwe.
Environmental Degradation and Lack of Accountability
Foreign nationals involved in ASM may not have the same commitment to environmental stewardship as local miners. Their operations can lead to significant environmental degradation, with little accountability for rehabilitation efforts. Local miners, on the other hand, have a vested interest in preserving the environment for future generations.
“It is deeply concerning to see foreign entities mining irresponsibly, degrading our land, and leaving behind unrehabilitated pits that could cause lasting harm. Often, these foreign operators disappear, leaving us with the consequences,” Chizuzu said.
Exploitation of Loopholes in the Regulatory Framework
Foreign nationals may exploit loopholes in Zimbabwe’s regulatory framework, engaging in practices that undermine the integrity of the ASM sector. This includes operating without proper licenses, under-reporting production, and evading taxes, which ultimately rob the country of valuable revenue.
“Foreigners should be responsible investors, beginning with exploration. This not only involves employing geologists and surveyors, thus increasing their experience but also contributes to our economy as they stay in our hotels and spend money locally. When they move to the mining stage, it should be done in a proper, world-class manner. This approach will create jobs for our people, including professional roles such as mining engineers, geologists, environmental scientists, and other experts, rather than the haphazard operations often seen in small-scale mining, where everything is guesswork,” Chizuzu said.
Undermining of Local Expertise and Skills Development
The involvement of foreign nationals in ASM can stifle the development of local expertise and skills. When foreign investors dominate the sector, they usually import their own workforce, depriving some Zimbabwean citizens of employment opportunities and the chance to develop their skills in mining.
“Foreign nationals are bringing a skilled workforce that we already have here in Zimbabwe. AJMPZ has a lot of skilled, unemployed personnel, but the Chinese are bringing their own. We need to stop that—first by banning them from investing in ASM and then by creating legislation that ensures local professionals are employed ahead of foreigners. We are actually creating employment for foreigners in this country, while our own are being despised in countries like South Africa,” Hazel Karoro, AJMPZ Secretary General, said.
Threat to Social Cohesion and Cultural Heritage
ASM is deeply intertwined with the social and cultural fabric of many Zimbabwean communities. The influx of foreign nationals into the sector can disrupt social cohesion and erode cultural heritage. Local communities may feel alienated and marginalized when they see outsiders exploiting their resources.
“Allowing foreign entities to dominate this space not only risks environmental degradation and community displacement but also undermines the potential for local empowerment, employment creation, and poverty alleviation,” Young Miners Federation (YMF) CEO Payne Farai Kupfuwa said.
Increase in Conflicts and Tensions
The presence of foreign nationals in ASM can lead to conflicts and tensions between local communities and foreign miners. Disputes over land, resources, and environmental impact can escalate into violence, threatening the peace and stability of mining areas. Several Media reports highlight Chiefs (traditional leader) clashing with Chinese miners something unheard of with natives. A traditional leader is responsible for performing the cultural, customary and traditional functions of a Chief, headperson or village head, as the case may be, for his or her community.
“Investment is certainly welcome, but we do not want disputes with small-scale miners over a 10-hectare area when larger investments are possible. Investors should focus on areas that are not conflicted. We’ve also proposed that specific regions be demarcated for small-scale miners, so when large mining operations are planned, they won’t interfere with or take over land in those areas,” Wellington Takavarasha, CEO of ZMF, said.
Loss of Economic Benefits to the Local Economy
When foreign nationals engage in ASM, the profits they generate are often repatriated to their home countries, resulting in a loss of economic benefits for Zimbabwe. Local miners, however, are more likely to reinvest their earnings in the local economy, creating jobs and stimulating growth.
“Foreigners in the ASM are also involved in the smuggling of our resources. Recently, Chinese nationals were caught in Zambia smuggling our gold. It should not happen. We want our miners to send their gold to Fidelity Gold Refinery (FGR),” Dru Edmund Kucherera, Spokesperson and Vice Chairman of Miners for Economic Development, said.
Erosion of National Identity and Pride
ASM is a symbol of Zimbabwe’s resilience and resourcefulness. Allowing foreign nationals to dominate the sector can erode national identity and pride, as the country loses control over a critical part of its heritage. It is crucial to preserve ASM as a domain for Zimbabweans to showcase their skills and determination.
“Going forward, as a country, and in light of the future of mining, we need to evaluate our so-called investors who are coming in to replicate ASM operations, including those from our all-weather friends from China, as well as from India, Pakistan, and other nations.
“Our minerals are depletable, so we must reflect as we progress. As it stands, our indigenous artisanal and small-scale miners are performing much better, albeit with significant challenges, compared to those who are well-advanced in areas such as technology, machinery, and access to capital,” Mudamburi said.
Promotion of Responsible Investment
Finally, banning foreign nationals from ASM would encourage responsible investment in Zimbabwe’s mining sector. Foreign investors should focus on larger-scale projects that require significant capital and expertise. By doing so, they can contribute to the country’s development while leaving ASM to local miners who are better positioned to manage it responsibly.
“We need investors who will bring growth to our country, our communities, and our people through knowledge transfer. But what’s happening on the ground is problematic. Locals employed by these foreign investors are subjected to the same mining methods used by our locals, with no new or innovative techniques being introduced,” Kupfuwa said.
In conclusion, while foreign investment is crucial for Zimbabwe’s economic growth, it should be directed towards sectors where it can bring the most benefit. Artisanal and small-scale mining should remain the preserve of Zimbabwean citizens, ensuring that the sector serves its intended purpose of empowering local communities and fostering sustainable development.