The government of Zimbabwe has issued a two month ultimatum to all mining entities to renew their annual fees or risk losing their mining titles. This comes after it was established that the government is owed $200m by defaulting firms and individuals.
According to the Mines and Mining Development Minister Winston Chitando, the government was concerned that the majority of firms were not making efforts to pay the $200 million owed to the government as at January 2020; in line with the Mines and Minerals Act.
His counterpart from the ministry of Information, Publicity and Broadcasting Services Monica Mutsvangwa; while addressing a post-Cabinet briefing in Harare, said that the cabinet resolved that all holders of mining titles should pay for their annual renewal, failure of which will mean loss of their titles as provided for in the Mines and Minerals Act.
Full utilization of all mineral rich assets
The ultimatum comes as the government is already in discussion with the Chamber of Mines regarding concern over the holding of mining titles for speculative reasons at the expense of serious people yearning to investment into the sector. Last year, the Ministry of Mines and Mining Development even wrote to the chamber seeking its input on how the government should proceed with the plan to withdraw mining titles that are being held for speculative reasons in a manner that would be fair to both parties.
Therefore, the move to withdraw the titles is part of the government’s efforts to make sure that all mineral rich assets are put to full production or at least work is seen to be done to put them into production so that the economy can begin to reap fruits of the country’s mineral endowments.
Meanwhile, the cabinet resolved that the Ministry of Mines and Mining Development sign a Memorandum of Agreement (MOA) with an independent organisation formed by young Zimbabweans which has been playing a key role in marketing the Zimbabwe mining industry.