News / National
Zimbabwe's EPOs are only being held for speculative purposes
08 Feb 2024 at 04:27hrs | Views
Calls have intensified for the Government to review the issuance of Exclusive Prospecting Orders (EPOs) by the Ministry of Mines and Mining Development following revelations that the majority of them are not being utilised and are only being held for speculative purposes by corporates and individuals.
Investigations show that a number of foreign nationals have been clinging on to as many as 20 EPOs each which they have not been using for several years now, prompting locals interested in mining to lobby the Government and Parliament to look into the issue.
National coordinator for black empowerment lobby, Miners4ED, Mr Rodrick Mumbire recently appealed to the Government to scrap a mining law that protects individuals in possession of large tracts of land under an exclusive prospecting order (EPO), resulting in prospective miners struggling to obtain new claims.
Mr Mumbire said a few elites were holding on to EPOs that gave them exclusive rights to control large tracts of land of up to 35 000 hectares with the majority of prospective miners left with no place to search for gold.
"We now have a problem in the mining sector which is affecting the vision of achieving a US$12 billion mining economy. Most of the areas under EPOs remain idle without being used," said Mr Mumbire.
He said small to medium miners were contributing 60 percent of the total gold mined in the country hence their importance in the growth of the economy.
Parliament last week heard that only 40 of over 300 EPOs being held by companies were being utilised with the remainder believed to be held for speculative purposes at the same time blocking access to minerals for genuine miners.
This came out when officials from the Ministry of Mines and Mining Development led by Permanent Secretary Mr Pfungwa Kunaka appeared before the National Assembly, Portfolio Committee on Mines and Mining Development chaired by Bindura South legislator, Remigious Matangira.
An exclusive prospecting order confers exclusive rights to prospect for specified minerals in any identified location and are issued for three years, renewable up to a maximum of six years.
Mr Forbes Mugambate, the chief geologist in the Ministry confirmed that the majority of EPOs were not being utilised.
"That is where the major problem is, all this other ground that the over 270 EPOs apply to is closed to other players," he said.
Any land that is under an EPO cannot be utilised by anyone unless they get permission from the EPO's holder.
Matangira said there were allegations that some EPO holders were charging prospective miners up to US$50 000 to gain access to the land with reports also that some of the holders of these EPOs were the Ministry's employees while others were foreign nationals.
Investigations show that Canadian mining tycoon, Mr Allan Brent Dolan, has at least 20 EPOs that are not being utilised even though he has some operational mines, mostly in the Matebeleland region.
One of his operations, Vubachikwe Mine in Gwanda district, has been closed for several months because of operational challenges which include industrial action by workers over salaries and safety concerns.
Two of the scores of artisanal miners who invaded the site after the suspension of operations died after an accident at the mine on December 24.
Mr Kunaka recently told Parliament that they were failing to monitor whether mining companies were observing safety and environmental protection guidelines in their operations.
"We have adequate manpower but if we could get more resources like vehicles and fuel, we could have more inspections.
"At the moment our staff are spending more time in the offices that in the field," he said, adding that some companies were last inspected five years ago.
Investigations show that a number of foreign nationals have been clinging on to as many as 20 EPOs each which they have not been using for several years now, prompting locals interested in mining to lobby the Government and Parliament to look into the issue.
National coordinator for black empowerment lobby, Miners4ED, Mr Rodrick Mumbire recently appealed to the Government to scrap a mining law that protects individuals in possession of large tracts of land under an exclusive prospecting order (EPO), resulting in prospective miners struggling to obtain new claims.
Mr Mumbire said a few elites were holding on to EPOs that gave them exclusive rights to control large tracts of land of up to 35 000 hectares with the majority of prospective miners left with no place to search for gold.
"We now have a problem in the mining sector which is affecting the vision of achieving a US$12 billion mining economy. Most of the areas under EPOs remain idle without being used," said Mr Mumbire.
He said small to medium miners were contributing 60 percent of the total gold mined in the country hence their importance in the growth of the economy.
Parliament last week heard that only 40 of over 300 EPOs being held by companies were being utilised with the remainder believed to be held for speculative purposes at the same time blocking access to minerals for genuine miners.
This came out when officials from the Ministry of Mines and Mining Development led by Permanent Secretary Mr Pfungwa Kunaka appeared before the National Assembly, Portfolio Committee on Mines and Mining Development chaired by Bindura South legislator, Remigious Matangira.
An exclusive prospecting order confers exclusive rights to prospect for specified minerals in any identified location and are issued for three years, renewable up to a maximum of six years.
Mr Forbes Mugambate, the chief geologist in the Ministry confirmed that the majority of EPOs were not being utilised.
"That is where the major problem is, all this other ground that the over 270 EPOs apply to is closed to other players," he said.
Any land that is under an EPO cannot be utilised by anyone unless they get permission from the EPO's holder.
Matangira said there were allegations that some EPO holders were charging prospective miners up to US$50 000 to gain access to the land with reports also that some of the holders of these EPOs were the Ministry's employees while others were foreign nationals.
Investigations show that Canadian mining tycoon, Mr Allan Brent Dolan, has at least 20 EPOs that are not being utilised even though he has some operational mines, mostly in the Matebeleland region.
One of his operations, Vubachikwe Mine in Gwanda district, has been closed for several months because of operational challenges which include industrial action by workers over salaries and safety concerns.
Two of the scores of artisanal miners who invaded the site after the suspension of operations died after an accident at the mine on December 24.
Mr Kunaka recently told Parliament that they were failing to monitor whether mining companies were observing safety and environmental protection guidelines in their operations.
"We have adequate manpower but if we could get more resources like vehicles and fuel, we could have more inspections.
"At the moment our staff are spending more time in the offices that in the field," he said, adding that some companies were last inspected five years ago.
Source - The Herald