Government of Zimbabwe recently issued a directive to suspend issuing of new exclusive prospecting orders (EPOs) and cancelled all existing ones, this move will curb speculation and create a level playing field for investors. The EPOs is issued by the Mining Affairs Board which is chaired by the Permanent Secretary of Mines. The mining industry is one of Zimbabwe’s major economic sectors, accounting for more than 75% of foreign exchange earnings, as well as contributing significantly to government revenues, employment, and infrastructure development. Zimbabwe is endowed with over 60 minerals of economic value these range from precious minerals, semi-precious stones, base metals, industrial minerals and so on.
EPOs grant investors the right to prospect (search) for new mineral deposits in specific geographic locations of the country to promote the discovery of fresh deposits for the opening of new mines and expansion of existing operations in Zimbabwe. About 90% of mineable vast mineral lands in Zimbabwe are under EPOs. The EPOs that were issue in 2021 were valid for 3yearsa and the EPOs are soon going to be replaced by Exploration Prospecting Licenses (EPLs)which be valid for 1-year renewable upon producing of results as most of the holders have been using the rights for speculative purposes.
EPOs soon to be called EPLs must be issued or granted only for real exploration unlike most of the EPOs we have hadblanketing vast mineral lands for speculative purposes. They were retrogressive to the growth of the mining industry. The abuse of the EPOs regime was now affecting mining industry growth. If EPOs/EPLs issued for real exploration purposes, they would have helped in the growth of the mining industry.The size of EPLs needs to be reduce to enable pegging as the results of exploration done over the years need to be put to use. The advent of land reform program saw the interests of local people increasing in the mining sector also buttressed by availability of information pertaining to mining across the width and breath of our society. The small-scale mining sector is growing and mining titles have to be availed to them through reducing sizes of exploration land as we can’t continue having exploration in perpetuity.
The Minister of Mines’s Hon. Soda Zhemu’s move to stop issuing and renewal of EPOs is a positive development as it shall help to bring about sanity in the Mining sector as the issue of EPOs locking exploration of known deposits was counterproductive. The EPO sizes should be reduced as the maximum size of 65 000ha meant that the other minerals within the area being explored cannot be mined despite the license holder having the right to explore just one mineral. The exploration should benefit the nation not for it to be used as a speculative venture. The EPO/EPL holders in the future should issue consent letters for minerals they will not be exploring and the Mining Affairs Board should expedite the applications from those seeking pegging. There is need to strike a balance between exploration and mining as continuous exploration an area without it being opened for pegging doesn’t serve the nation right as actual mining brings direct benefits to locals through employment, corporate social responsibility, royalties and so on. Exploration is the starting point in mining development but the process of late has been used for speculation and stopping potential exploitation of mineral resources.
The Minister through Mining Affairs Board should only renew EPOs/EPLs for those companies who availed the results of their previous exploration and the number of EPOs/EPLs issue per entity should be minimized basing on the history of the applicant. For new applicant’s background of their history in the exploration field should be taken into consideration as previously anyone capable of paying the required fees was legible which led many who didn’t have intention to conduct exploration applying then use the holding of EPO for speculation. The renewal of the soon to be Exploration License should be on the basis of evidence of work being done and Zimbabwe Geological Survey should be involved in the renewal process in the case of the applicant seeking to complete the process. There should be an increase in mining ventures after every cycle of EPLs thus reducing percentage of mineable areas under exploration as exploration should help in identification of mineral deposits that have to exploited so that the nation benefits from resources it is endowed with.
Exploration is a vital and critical cog in the development of mining sector but there is need for transition of greenfield into brownfields and later setting up of proper mines. There should be proper laid down time frames where an area should transit from greenfield to brownfield as we can have a situation where an area remains a greenfield for 5-10years and in the case where there are known deposits of minerals not being explored there should be ways to let those deposits explored so that the nation benefits.
Saxon Zvina is a Senior Consultant in Sustainable Mining, providing strategic solutions for environmental and social responsibility in the industry. Reach him at saxon@skyworld.co.zw or on Twitter: @saxonzvina2.
