Question 1

Identify the loopholes in the Mines and Minerals Act (21:05). Propose amendments that will
make the law more competitive and sustainable. [25]

Identified Loopholes within the Mines and Minerals Act (MMA) (21:05)

1. The Mines and Minerals Act [21:05], (MMA) does not recognize or define the Artisanal
Small-Scale Mining (ASM) sector as legal or existing hence their operations are not
regulated or monitored in any way.
2. The MMA does not allow free trade policy of minerals by mining companies to
competitive buyers there limiting high profit realisation. This then paves way to market
monopoly by Fidelity Gold Refineries (FGR) and Minerals Marketing Cooperation of
Zimbabwe (MMCZ).
3. There are no provisions within the MMA that adequately state on gender equity in the
mining cycle for proper affirmative action for women to participate and benefit from the
sector.
4. Within the MMA there is no standardized baseline for mining contracts which then leads
to bottlenecking of some companies as it does not clearly fully explain on the issues of
exploration, quantification and valuation of minerals.
5. The MMA also fails to create single licensing authority and this results in too many
players and bureaucracy thereby opening opportunities for corruption.
6. The provisions of the MMA do not provide for standardized backward and forward
linkages between mining industry and other supporting industries like manufacturing and
service providers.
7. The Mining Affairs Board (MAB) is not inclusive of all stakeholders for example critical
Civil Society Organizations (CSO)

Proposed Amendments to Mines and Minerals Act (MMA) (21:05) to make it

competitive and sustainable

1. There is need to create provisions that enforce gender equality within the mining
industry to ensure a certain percentage of their employees are women.
2. A digital Mining cadaster system database should be introduced within the bill. The
database will be updated regularly and be accessible to the public thereby fostering
transparency.
 3. Formalization of Artisanal Small-Scale Miners by way of clearly defining the group.
This would enable the government to set laws that govern and regulate the ASM
miners.
4. Mining companies to publicize their production and revenues data hence increasing
transparency.
5. There is need to have a clause which stresses on local mineral value addition and
beneficiation so as to align with the Africa Mining Vision (AMV) and the Regional
SADC Protocol.
6. Decentralization of power from the Minister and Mining Affairs Board.
7.

QUESTION 2

Is the “use it or lose it policy” provided for in the MMA legislation? Discuss the benefits “use
it or lose it” policy to host governments. [15]

The term, “use it, or lose it” is not expressly used in that form in the Mines and Minerals Act
Chapter 21:05. The provisions relating to the “use it or lose it” policy is found in Part XXIII
of the Act under the heading Expropriation of Mining Locations Not Being Worked, or
Developed. Section 319 of the Act provides for the process leading to the expropriation of an
undeveloped, or idle mining location.
Benefits of “use it or lose it policy” to host governments are as follows:
1. This is a very good provision that will help to minimize the hoarding and holding of
mining claims for speculative purposes by mining companies. For example, De-Beers
that was accused of carrying out mining activities in the Chiadzwa Diamond Fields
from 1991-2006 under its Exclusive Prospecting Order (EPO) under the pretext that it
was prospecting. The Government of Zimbabwe alleged that De Beers looted over
100 000 tons of ore during its 15 years stay in Marange.
2. It opens up high value mining claims to serious mining investors. This then leads to
increased availability of claims instead of claims lying idle whilst being held by
mining companies which are not using them.
3. Increase in production from increased mineral resource utilization per any given time.
4. The expropriated claims also give a chance for the government to allow local
domestic small investors a chance to acquire mining claims.
5. Due to increased utilization and production of the mining industry there will be an
increase in employment opportunities. More job vacancies will be available as more
mines will open up thus raising the countries employment rate going a long way to
reduce the general national poverty line.
6. There will be an increase in the GDP for the nations under host governments as
people will now be earning more money.