News / Local
US$1m for strategic minerals licence in Zimbabwe
4 hrs ago | Views
Zimbabwe has gazetted a sweeping new Mines and Minerals Bill that seeks to clamp down on speculative mining claim hoarding while ensuring only credible investors participate in the extraction of strategic minerals. The Bill, introduced last week, requires prospective investors to either commit a minimum investment of US$1 million or enter into a formal partnership with the Government to be eligible to mine designated strategic minerals.
The new legislation replaces the decades-old Mines and Minerals Act and marks a significant shift in the regulation of Zimbabwe's mineral wealth. It is expected to play a critical role in aligning the mining sector with the country's Vision 2030 and broader economic development objectives.
The Bill gives the Minister of Mines and Mining Development, in consultation with the Mining Affairs Board, the authority to declare any mineral "strategic." Once declared as such, exploitation of that mineral will require a prior agreement with the State, including possible financial thresholds, joint ventures with government entities, and adherence to specific environmental and social responsibility standards.
The legislation defines strategic minerals as those considered essential to national security, industrial growth, or economic resilience. Minerals such as lithium, cobalt, and rare earth elements - vital components in battery production, electronics, and renewable energy - are likely to fall under this classification. Zimbabwe is known to hold Africa's largest lithium reserves, positioning it as a potential global leader in supplying this high-demand mineral.
While the Bill is designed to hold large-scale investors to account, it also provides some relief for small-scale miners. The Mines Minister retains the discretion to exempt smaller operators from the US$1 million threshold if it is deemed economically and socially prudent. This provision acknowledges the key role small-scale mining plays in local economies and employment.
In addition to addressing the strategic minerals framework, the new law outlines a clear process for resolving disputes between miners and landowners. These include initial negotiations, referral to the provincial mining director, and escalation to the Secretary of Mines or the Administrative Court if no resolution is reached. The Bill also introduces restrictions on mining in areas deemed vital for agriculture and food security, such as arable and pastoral land. These measures aim to balance mineral exploitation with the preservation of gains from Zimbabwe's Land Reform Programme.
The legislation also introduces a Mining Cadastre Register - a modern, digital system to record and manage mining licences and concessions. This reform is expected to improve transparency, curb corruption, and standardise the management of mining rights.
Attorney-General Virginia Mabiza said the Bill reflects years of work and broad stakeholder engagement. She noted that it had faced delays due to various concerns, including an initial rejection by President Emmerson Mnangagwa in 2018 and legal reservations from the Parliamentary Legal Committee in 2023. The drafting process was also slowed by a shortage of legal drafters, a challenge that has now been resolved.
"This is a major legislative milestone. It is a Bill that supports the country's economic objectives and is aligned with the national Vision 2030," said Mabiza. "We are confident it will soon be passed into law and implemented for the good of our economy."
Among other notable reforms, the Bill abolishes the distinction between precious and base metal claims, limits the use of annual fee payments to maintain claims, and redefines the mining title structure to focus on operational output rather than passive ownership. It also makes provision for increased local ownership and participation in mining at the primary level.
If passed by Parliament, the new Mines and Minerals Bill is set to usher in a modern and more inclusive regulatory regime that ensures Zimbabwe's vast mineral wealth is harnessed efficiently, transparently, and in line with national interests.
The new legislation replaces the decades-old Mines and Minerals Act and marks a significant shift in the regulation of Zimbabwe's mineral wealth. It is expected to play a critical role in aligning the mining sector with the country's Vision 2030 and broader economic development objectives.
The Bill gives the Minister of Mines and Mining Development, in consultation with the Mining Affairs Board, the authority to declare any mineral "strategic." Once declared as such, exploitation of that mineral will require a prior agreement with the State, including possible financial thresholds, joint ventures with government entities, and adherence to specific environmental and social responsibility standards.
The legislation defines strategic minerals as those considered essential to national security, industrial growth, or economic resilience. Minerals such as lithium, cobalt, and rare earth elements - vital components in battery production, electronics, and renewable energy - are likely to fall under this classification. Zimbabwe is known to hold Africa's largest lithium reserves, positioning it as a potential global leader in supplying this high-demand mineral.
While the Bill is designed to hold large-scale investors to account, it also provides some relief for small-scale miners. The Mines Minister retains the discretion to exempt smaller operators from the US$1 million threshold if it is deemed economically and socially prudent. This provision acknowledges the key role small-scale mining plays in local economies and employment.
In addition to addressing the strategic minerals framework, the new law outlines a clear process for resolving disputes between miners and landowners. These include initial negotiations, referral to the provincial mining director, and escalation to the Secretary of Mines or the Administrative Court if no resolution is reached. The Bill also introduces restrictions on mining in areas deemed vital for agriculture and food security, such as arable and pastoral land. These measures aim to balance mineral exploitation with the preservation of gains from Zimbabwe's Land Reform Programme.
The legislation also introduces a Mining Cadastre Register - a modern, digital system to record and manage mining licences and concessions. This reform is expected to improve transparency, curb corruption, and standardise the management of mining rights.
Attorney-General Virginia Mabiza said the Bill reflects years of work and broad stakeholder engagement. She noted that it had faced delays due to various concerns, including an initial rejection by President Emmerson Mnangagwa in 2018 and legal reservations from the Parliamentary Legal Committee in 2023. The drafting process was also slowed by a shortage of legal drafters, a challenge that has now been resolved.
"This is a major legislative milestone. It is a Bill that supports the country's economic objectives and is aligned with the national Vision 2030," said Mabiza. "We are confident it will soon be passed into law and implemented for the good of our economy."
Among other notable reforms, the Bill abolishes the distinction between precious and base metal claims, limits the use of annual fee payments to maintain claims, and redefines the mining title structure to focus on operational output rather than passive ownership. It also makes provision for increased local ownership and participation in mining at the primary level.
If passed by Parliament, the new Mines and Minerals Bill is set to usher in a modern and more inclusive regulatory regime that ensures Zimbabwe's vast mineral wealth is harnessed efficiently, transparently, and in line with national interests.
Source - The Herald
