Zimbabwe Must Act on Diamond, Mineral Resources
Post Date: 30 Jul 2010 Viewed: 451
The government of Zimbabwe must change its policy toward the rich mineral resources the country boasts – particularly the recently discovered stocks of rough diamonds, which have the potential to propel Zimbabwe forward as a major diamond supplier – and take a more proactive role in encourage mineral exploration, says Tichaona Zindoga.
Zindoga, writing an Op-Ed in All Africa, noted that two important pieces of legislation pertaining to Zimbabwe's diamond resources are due to be tabled before the Zimbabwe government this session. The Mines and Minerals Amendment Bill – which was submitted to Zimbabwe's parliament for the first time in 2007 – is designed to see that the nation derives the highest possible benefit from its vast array of mineral, especially its recently discovered diamond stocks.
Zindoga said that the Marange diamond fields could potentially supply a quarter of the world's rough diamond market and enough income to meet all government expenditures.
The second bill, called the Zimbabwe Exploration Corporation Bill, sets up a framework under which the Zimbabwe Exploration Corporation will be established, giving the government a more active role in exploring all of the nation's mineral resources, including diamonds.
Moreover, Zindoga writes, Finance Minister Tendai Biti has called for the government to open a database of all known mineral stocks in the country. Biti has said that mineral-rich Zimbabwe suffers under the current claim-hoarding culture, which renews claims without mining or exploring them.
Thus far, a lack of funds has hampered Zimbabwe's government from mineral exploration, which demands a large initial investment. Earlier this year, Murisi Zwizwai – former Mines Deputy Minister – noted that mine exploration was a "very risky enterprise and many private investors are skeptical."
Worldwide, success in mines exploration stands at an average of 12%. Nevertheless, Zindoga's position states that Zimbabwe's government should take an active role in mineral exploration. First, a mineral exploration scheme would provide the government with the raw data necessary to bring investors to the country.
The government must bring private investors on board to mine the country's mineral resources, Zindoga argues. One way to motivate mining investments, he says, would be to do away with the $100,000 "pre-mining levy" the government currently charges for Exclusive Protective Orders – licenses to prospect, but not actually mine.
For resources deemed "strategic" – coal, methane, and diamonds, the government charges another $100,000 for a Special Grant.