The Minister of Mines and Mining Development Hon Zhemu Soda highlighted a comprehensive strategy aimed at maximizing value capture and transforming the mining sector.
Responding to the question “What is the government doing to ensure Zimbabwe’s mining assets are being adequately exploited to maximise value capture?, the Minister emphasized the Zimbabwe government’s commitment to fostering inclusivity in mining activities, promoting an open pegging system accessible to both locals and foreigners.
He said the concerted effort has not only enhanced capacity utilization in mineral processing facilities but has also resulted in increased employment opportunities for local communities and boosted government revenue via taxes and royalties.
“There is openness in pegging for both locals and foreigners. The Government, through the Ministry of Mines and Mining Development, has in the past few years facilitated the opening of new mines, resuscitation of closed ones and expansion of existing operating mines and enhanced capacity utilisation of the existing mineral processing facilities; hence increased employment of local people and increased revenue to government through royalties and taxes.
He said there is increased focus on value addition which is supported by the banning of the export of raw minerals.
“Recently, there has also been an enhanced focus on value addition supported by the banning of exports of raw minerals. In the same vein, the government enabled the establishment of key value addition and beneficiation facilities such as gold jewellery manufacturing facilities and diamond cutting and polishing facilities; to move the economy up the value chain and structurally transform the mining sector to realise maximum value.
The Minister said in order to prevent speculative practices and ensure efficient resource utilization, the government has adopted the “use it or lose it” principle, discouraging the hoarding of mining claims.
“The government is also implementing the use it-or-lose it principle to mitigate against the hoarding of mining claims for speculative purposes by miners,” he said.
In conclusion the Minister said the revival of the Mining Promotion Corporation (MPC) introduced a novel approach, with the government reserving specific areas for exploration through Joint Venture partnerships.
“The resuscitation of the Mining Promotion Corporation (MPC) has also brought in a new model in which the Government reserved some areas targeted for exploration by MPC through Joint Venture partnerships,” Hon Soda concluded.
The Minister is currently in Cape Town the Investing in African Mining Indaba 2024.
This interview can be accessed in full at miningzimbabwe.com/magazine