This provision
is contained in the new Mines and Minerals Bill, which was gazetted on
Wednesday last week and replaces the Mines and Minerals Act.
The Bill
introduces a range of reforms to modernise the mining sector and align it with
national development goals.
While large
investors must meet strict requirements, the Bill provides flexibility for
small-scale miners, with the Mines and Mining Development Minister empowered to
exempt them from the US$1 million requirement if deemed prudent.
According to
the Bill, the minister, in consultation with the Mining Affairs Board, can
declare any mineral as “strategic”.
“Under clause 6
(Strategic minerals) it is proposed that the minister should have power, after
consultation with the Mining Affairs Board, to declare any mineral to be a
strategic mineral,” reads the Bill.
“The
declaration means that any proposed miner of the strategic mineral must enter
into a prior agreement with the State which, among other things, may require
any or all of the following: a commitment to invest at least US$1 000 000; the
formation of a company or other special investment vehicle in which the State
has an interest and other undertakings relating to environmental protection and
corporate social responsibility.
“The form of
title under which a strategic mineral may be exploited shall be a mining lease
or special grant.”
This means once
a mineral is declared strategic, a miner must enter into a formal agreement
with the State, which may include minimum investment of US$1 million or
establishing a company or investment vehicle with State participation.
Strategic
minerals are those deemed critical to a country’s economy, security or
industrial development and whose supply could be at risk due to geopolitical,
economic or logistical factors.
In some
countries, minerals such as lithium, which is crucial for making batteries for
electric vehicles (EVs) and renewable energy storage; as well as cobalt, used
in electronics and EVs, are deemed strategic.
In most cases,
rare earth minerals that are essential for making magnets, and for use in
electronics and military technology are deemed strategic.
Zimbabwe is
estimated to have the largest lithium deposits in Africa.
According to
the Bill, small-scale miners can be exempted and be allowed to extract the
strategic minerals if the Mines and Mining Development minister views it as
prudent to do so.
The Bill also
comprises provisions relating to conflict resolution mechanisms between farmers
and miners, which include negotiations, referring disputes to the provincial
mining director (PMD) and Mines and Mining Development secretary, and
ultimately to the Administrative Court if a solution is not found.
“The precise
exercise of these rights are negotiable with the occupier of the affected land,
but if the negotiations are fruitless, the prospector may refer the dispute to
the PMD. The PMD thereupon convenes a meeting of the disputants and decides the
dispute after hearing them.
“An aggrieved
disputant may appeal to the Secretary, and ultimately to the Administrative
Court,” reads Clause 36 of the Bill.
“This clause is
the first of many adverting to the manner of resolving disputes between
prospectors and miners, on the one hand, and farmers and other landholders on
the other hand, and it sets the pattern for other clauses addressing
farmer/miner disputes.”
The Bill provides elaborate steps to be followed should there be a dispute.
There are also
clauses that preclude certain areas such as arable and pastoral land from
prospecting, as the Government seeks to deal with issues that might undermine
the Land Reform Programme, agricultural activities and food security.
Commenting on
the Bill, Attorney-General Mrs Virginia Mabiza said it will give impetus to the
country’s economic growth and fulfilment of national objectives and vision.
The 396-page
Bill will, among other things, reconstitute the composition of the Mining
Affairs Board and clarify its functions, establish the Mining Cadastre Register
and Registry (a digital platform that records and manages mining licences,
concessions and other legal instruments related to mining operations),
rationalise classes of mining titles to three and regulate the activities of
prospectors.
There has been
a lot of anxiety by stakeholders on the Bill after its passage took long
because of various reasons, one of which was that President Mnangagwa rejected
the initial proposed law in 2018 as he felt certain clauses were not consistent
with the Constitution.
The
Parliamentary Legal Committee expressed reservations on the revised Bill in
2023 that was brought up, resulting in it eventually lapsing due to the
prorogation of Parliament. Sunday Mail
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