While Zimbabwe is well placed to take advantage of growing demand for critical minerals associated with the global energy transition, the country’s unstable energy supply requires urgent intervention.
This can be achieved by investment in the current power stations, and diversifying the country’s energy mix by considering other sources of energy, says law firm Sitef and Co director Mihlali Sitefane.
Zimbabwe should ensure that it implements sustainable resource management laws and policies, which includes ensuring the implementation of responsible extraction methods, proper waste management protocols and greater efforts to reduce negative environmental impacts.
Further, she contends that local capacity-development programmes should be implemented, which would require investment in training and education programmes to develop a skilled local workforce for the mining industry.
“This not only benefits the industry but also contributes to local economic development and reduces reliance on foreign expertise.”
Meanwhile, infrastructure development is also key, with Sitefane arguing that Zimbabwe should prioritise the improvement of transport and logistics infrastructure to facilitate the movement of minerals to markets, noting that well-connected infrastructure reduces transportation costs and enhances competitiveness.
While there have not been many recent legislative changes to the country’s mining sector, there is a change looming on the horizon in the form of the Mines and Minerals Bill of 2022.
“This Bill will bring many changes to Zimbabwe’s mining regulatory regime, the most notable being that it will entirely replace the Mines and Minerals Act,” Sitefane reveals.
The Bill will establish a mining cadastre registry; reduce the number of mining titles to three types of licences; convert certain special grants into mining leases; introduce the concept of “strategic minerals”, to which special conditions will be attached by mutual agreement between the Minister and the State; make the procedures under the Act generally more transparent; and allow for aggrieved persons to have a right of appeal against decisions which impact on their rights.
She points out that the Parliamentary Portfolio Committee on Mines and Mining Development is engaging with stakeholders regarding the development of the Mines and Minerals Bill.
In addition, the Zimbabwean Chamber of Mines has submitted a position paper to government on the Bill and government aims to finalise all amendments to it by the end of this year.
“The Mines and Minerals Bill will no doubt have a profound impact on the Zimbabwean mining industry which holds many opportunities because there is incredible value that sits within its borders,” concludes Sitefane.