Maravi

Companies give up mining claims

Companies give up mining claims
16/04/2012 00:00:00
by Business Reporter

THE recent hike in mining licence fees as well as the government’s ‘Use it or lose it policy’ has seen several companies giving up their mining claims, Mines Minister Obert Mpofu has revealed.

Government adopted the ‘use it or lose it policy’ to discourage holding of mining claims for speculative purposes as well as open the sector to more serious investors. The policy was also complemented by a significant bump in prospecting and other mining fees.

“The new mining fees are not meant to discourage indigenous players, rather they seek to do away with the speculative tendencies in the mining sector,” Mines Minister Obert Mpofu told state radio on Monday.

“Over the past few months, we have seen a number of claims being surrendered to the Ministry following the adoption of the policy as well as the implementation of the Use It or Lose It Policy.”

Mining industry executives have warned that the fee increases could hurt growth in a sector credited with driving economic recovery over the last couple or years.
However, Mpofu said he was confident the sector would achieve the targeted 15,9% growth this year.

Meanwhile, the mines ministry has also ordered 469 local and foreign miners to resubmit applications for exploration rights detailing their shareholding, proposed work as well as proof of funding and technical capacity.

In a statement to local media on Monday, the Ministry said companies must also provide full details of directors and shareholders in their so-called exclusive prospective orders.

Labels: INVESTMENT LICENSES, OBERT MPOFU

posted by MrK @ 4:46 PM