Maravi

(HERALD) Govt to reclaim idle mining claims

Govt to reclaim idle mining claims
New Ziana.

The Government is amending the Mines and Minerals Act to provide for the expropriation of all mining claims that are not being exploited.

Deputy Prime Minister Professor Arthur Mutambara said this in the House of Assembly while responding to a question from Buhera North legislator Mr William Mutomba, who wanted to know the policy of Government towards ensuring that all allocated mine claims were being exploited.

A significant proportion of allocated claims is known to be lying idle as the owners hold them for speculative purposes.

"Without pre-empting the work of Cabinet, the Mining Bill will apply the use it or lose it rule for companies and individuals holding onto claims," he said.

Prof Mutambara said the new law would also require determination of the net value of claims before they are sold. He said this would improve Government’s earnings from the minerals sector.

This year, Government grossed a paltry US$4 million in direct and indirect taxes from mining earnings totalling a whopping US$600 million.

"We are revisiting the notion of our natural resources, the asset value of the resource must be understood," he said.

"You are not going to get the claims for free as in the past. Most of these miners in Zimbabwe got these assets for free, that is a travesty."

Prof Mutambara said Zimbabwe could clear its debt hovering around US$7 billion from its vast mineral resources.

"How can you be in debt if you have the Great Dyke?" he asked.

The mining sector has this year grown by 47 percent on the back of firming mineral prices but continues to be blamed for contributing insignificantly to the fiscus due to low royalties.

Government has since increased gold and platinum royalties by 0,5 percent to 4,5 percent and 5 percent respectively to boost its pickings in royalties from the sector.

The new royalties will become effective next year. — New Ziana

Labels: ARTHUR MUTAMBARA, MINING, NATIONALISATION, WILLIAM MUTOMBA

posted by MrK @ 2:37 AM