Legal fog clouds Zimbabwe's new minerals policy, warns watchdog

Zimbabwe's latest attempt to reposition its mining sector through a strategic minerals policy is facing scrutiny, with a natural resources watchdog warning that the framework rests on weak legal foundations and could create regulatory uncertainty in a sector central to economic recovery.

The Centre for Natural Resource Governance (CNRG) said government's recent classification of lithium, nickel, cobalt, graphite, platinum group metals (PGMs) and rare earth elements as "critical minerals," alongside gold and diamonds as "strategic minerals," has been introduced without corresponding amendments to existing mining legislation.

Under the new policy direction, the State is expected to take a mandatory minimum stake in critical mineral projects through special purpose vehicles, while exports of designated minerals will require beneficiation compliance and ministerial approval.

However, CNRG warned that the classification system is not grounded in Zimbabwean law and risks creating legal ambiguity.

"The ministry has introduced three categories, 'critical,' 'special critical,' and 'strategic' minerals, yet nowhere in Zimbabwean law are these categories properly defined," the organisation said.

It added that the classifications appear to be based on broad policy and administrative discretion rather than statutory definitions, raising concerns over consistency and enforceability.

CNRG further highlighted inconsistencies with the Mines and Minerals Amendment Bill currently before Parliament, noting that the draft legislation only recognises "strategic minerals" and primarily defines diamonds under that category.

"The Bill only recognises ‘strategic minerals,' defining them broadly as minerals important to Zimbabwe's economic, industrial or security interests. Crucially, the Bill identifies only diamonds as strategic minerals," the watchdog said.

It warned that the government's broader policy declaration — which extends strategic classification to minerals such as gold, coal, iron ore, oil and gas, limestone, potash, pyrites and phosphorus — creates what it described as "legal incoherence."

According to CNRG, the divergence between policy and proposed legislation could result in parallel governance systems, where mineral classifications and export conditions are determined through executive authority rather than parliamentary oversight.

"Investors, regulators, communities and even government institutions are left navigating overlapping frameworks where mineral categories can shift through ministerial authority rather than parliamentary oversight," the organisation said.

The group also raised concern over expanded ministerial powers, including requirements for prior approval before mining rights can be granted for designated minerals, and restrictions on exporting unprocessed minerals without ministerial authorisation.

In its view, this centralises significant control over Zimbabwe's mineral wealth within the office of the Mines and Mining Development Minister, potentially heightening regulatory uncertainty.

The concerns come as industry players begin responding to the new framework. Zimplats Holdings Limited, one of Zimbabwe's largest foreign currency earners and a major platinum group metals producer, said it is engaging government to better understand the implications of the policy shift.

The company said it values its long-standing relationship with government and supports efforts to enhance local beneficiation and value addition, while emphasising the need for clarity and a stable operating environment.

Zimplats reiterated that it remains a key contributor to Zimbabwe's economy through employment, fiscal revenues and infrastructure investment, and noted its continued commitment to long-term beneficiation projects in line with national priorities.

As debate continues, analysts say the key challenge will be aligning policy ambitions with a clear and enforceable legal framework that provides certainty for investors while enabling the State to maximise value from its natural resources.