A power-point developed for a media sensitisation workshop conducted in 2016 by the Publish What You Pay Zimbabwe Coalition

1. Analysis of the Mines
and Minerals
(Amendment Bill) 2015
By Lenin Tinashe Chisaira (Twitter: @LeninChisaira)
Environmental Lawyer/Researcher, ZELA
For Presentation at the Publish What You Pay Zimbabwe Campaign
Media Sensitisation Workshop
Monomotapa Hotel, Harare/ 19 May 2016

2. Introduction
ZELA
ZELA is a public interest environmental law organisation, working with lawyers,
economists, political analysts, journalists for the protection and conservation of
the environment.
www.zela.org @ZELA_Infor
Mines and Minerals Amendent Bill
Purpose of the Bill is to amend the Mines and Minerals Act [Chapter 21:05]
First Draft – 20 July 2015
Second Draft – 28 July 2015

3. Some Questions???
 Is there a separation of powers in granting title?
 Is the mineral licensing regime competitive and clear?
 Can Parliamentary veto a granted right or title?
 Does the law address the rights of small scale and artisanal miners,
informing them about both their rights and responsibilities?
 Does the law contain provisions on relocation of communities including
upholding the rights of community members in mining communities?
 Does the law provide for environmental protection?
Zimbabwe Environmental Law
Associaion (ZELA)

4. General Issues- Mining Titles & Rights
Section 14 of the Bill
mining title” means—
 an exclusive prospecting licence; or
 an exclusive exploration licence; or
 special grant for exploration.

5. General Issues- Mining Titles & Rights
“mining right” means—
 (a) a certificate of registration of a block of precious metal claims; or
 (b) a certificate of registration of a block of precious stones claims; or
 (c) a certificate of registration of a block of base mineral claims; or
 (d) a certificate of registration of a site mentioned in section 47;
 (e) Special mining lease; or
 (f) Mining lease; or

6. 1 :
Mining Titles & Rights
 use it or lose it principle.
 Section 19 - first come first serve basis.
 FALLS SHORT: Introduction of competitive bidding process for exploration
licences making competitive tenders the norm.

7. Title Minerals Are
a
Requireme
nts
Granting
Authority
Duration
Exclusive
Prospecting
Licence
Minerals and mineral oils,
Natural Gas, nuclear energy
minerals
4
blocks
within
area
specifi
ed
Over 18
Permanent
resident
Company
registered in
Zimbabwe
PBC Act
Foreign company
registered under
Companies act
Cadastre Registrar
12 months
Exclusive
Exploration
Licence
Coal, Minerals Oils and Natural
Gases
Precious stones excluding
diamond
Any other
130000
ha
2600ha
65000h
a
Any person
pay the prescribed
application fee to
the Cadastre
Registrar; and
furnish the Board
with such
information as to—
his or her financial
status; and
the minerals which
he or she wishes to
explore; and
the nature and
extent of the
exploration
operations he or she
intends to carry out
within the exclusive
exploration
reservation; and
MAB Maximum 3
years can
be
extended
once not
more than
3 years

8. Mining RightsName Area Requirements Authority Duration
Mining leases 4 or more
contiguous
blocks
Cadastre
registrar after
authorisation
of the
president
25 years can
be transferred
to a person
approved by
the Board
Special Mining
Lease
4 or more
contiguous
blocks
President 25 years

9. A crowded field of many players??
 Cadastre Registrar (Mining Commissioner)
 Minister
 MAB
 President
Unclear provisions and terms to be met e.g. National interest provision for
granting of EEL

10. 2:
Composition of Mining Affairs Board
 Section 7: Secretary, Principal Directors, Dir of Geological Survey, two Ministry
officials, six others (Chamber of mines-2, Small –scale miners -1,farmers-
1,ICAZ-1,professional-1)
 Need for opening up for other persons not members of the Board to sit in
Committees, .e,g. Civil Society, media, labour unions and academia to be
included in the Mining Affairs Board-
 in Ghana a committee established to monitor management of oil revenue
includes all these constituencies

11. 3:
strategic minerals
 Section 5A- mineral deemed strategic on account of their importance to
economic, social, industrial and security development of the country
 3) Unique conditions as may be provided for under this Act shall attach to
the exploration, ownership, exploitation, beneficiation, marketing and
development of the minerals - non exclusive right to mine strategic minerals


12. 4 : Split licensing regime
 Mines Bill- President, MAB, Cadastre Registrar,
 such a split licencing regime also presents administrative challenges and
leaves loopholes for manipulation, corruption and ineffective use of already
scarce resources

13. Solution….model contract
“A purposeful government that acquires the expertise to deal foreign companies
on its own terms need not have a fear of domination by foreign companies,
however large they may be. The important word is purposeful – and I believe
our government has been able to put together strong negotiation teams, has
backed them up with well-worked out negotiation mandates, and has then
overseen the implementation of our major agreements with detailed care as
well.”
- Masire, late Vice-President of Botswana and first Minister of Finance and
Development Planning.

14. 5: Mining and farming
 Relocations -the Rural District Councils are expected to express the
communities’ voice and concerns on many issues including relocations related
to Communal land
 Falls short…Free, prior and informed consent (FPIC)

15. Mining and farming (Cont’d)
Compensation
 Section 65-compensation for prospecting within 9 metres of a permanent farm
building except on payment of agreed compensation
 Section 85 - owner or occupier of ground who is injuriously affected.

16. Compensation
 Section 72 asw 74 82 (5) to resolve farmer-miner conflicts, miners be
compelled to buy the land on which they propose to mine. It must be noted
that for land under a 99 year lease, the farmer will be compensated for the
value of improvements made on the land and the prospective economic loss
to the farmer based on previous performance. In order to for a land owner on
communal land or private land to benefit from this clause they will have to
register the land as arable land as per Section 77 of the Bill

17. Miner farmer relations
 Section 85 of the Bill places a requirement on a miner to fence off his mining
location
 clauses are likely to only be applicable to private landowners. - where the
miner fails to fence off it is highly unlikely that communal land occupiers
would have the wherewithal to fence off the mining location, let alone
recover the cost from the miner.

18. 6:
Environment Matters
 EPL subject to environmental considerations s20(4)(d)
 EEL authorised by the President before EIA report is provided by EMA
 Section 257 states that the Cadastre Registrar shall take into account the
need to conserve the natural resources in deciding whether or not to grant a
mineral right or title. –EIA
 Directors and members of corporations to be held responsible -PPP

19. Environment (Cont’d) Polluter-Pays
 The Bill goes further and states that the directors of a company or members
of a close corporation or syndicate are jointly and severally liable for any
unacceptable negative impact on the environment, including damage,
degradation or pollution advertently or inadvertently caused by the company
or close corporation or syndicate which they represent or are represented

20. Environment (cont’d) Riverbed Mining
 Riverbed Mining
 Second Schedule sets out standards for Riverbed mining

21. Environment: SHR Fund
 Safety, Health and Rehabilitation Fund
 Section 48 of the Environmental Management Act provides for the
establishment of an Environmental Fund

22. 7. Indigenisation and Value addition
 Section 307 of the Bill
- no mineral shall be exported raw or unprocessed
- The Minister can prescribe exemptions and applicable taxes
 Section 393 of
- no shareholder of a company holding a mining right or title shall sell, dispose
of or transfer a Zimbabwe registered security to a non-indigenous person
without the written approval of the Minister thereof
- -local financial institutions

23. 8. Local Content
 no clear provisions on local content
 Operational and mine development commitments-the proposed legislation
must contain provisions for local content, i.e. local procurement, local
employment and infrastructure development.

24. Local Content (cont’d)
 Botswana
(1) The holder of a mineral concession issued under this Act, shall, in the conduct of his
operations under such concession, and in the purchase, construction and installation of
facilities, give preference, to the maximum extent possible consistent with safety, efficiency
and economy, to—
(a) materials and products made in Botswana; and
(b) service agencies located in Botswana and owned by Botswana citizens or bodies corporate
established under the Companies Act.
(2) The holder of a mineral concession shall, in all phases of his operations, give preference in
employment to citizens of Botswana to the maximum extent possible consistent with safety,
efficiency and economy.
(3) The holder of a mining licence shall, in his operations, conduct training programmes in
consultation with the Minister for the benefit of employees so that such employees may qualify
for advancement.
Zimbabwe Environmental Law
Association (ZELA)

25. 9. Women’s rights
 Section 6 of the Bill that deals with the establishment of a Mining Affairs
Board provides for 50% representation from women on the Board.
 Besides this provision, there seems to be nothing to proactively promote
women’s participation in the mining sector.

26. 10.Children’s rights
 Section 403 of the MMAB states that the Minister shall revoke any mining right
or title once the holder contravenes the provisions of the Labour Act [Chapter
28:01] in relation to child labour.

27. 11.Artisanal and Small Scale Mining
sector As noted in the AMV, artisanal and small-scale mining represents a special
challenge, and as such different and tailor-made approaches to address the
challenges peculiar to the sector should be proposed.
 The MMAB might also need to pay special attention to ASM given its centrality
to gold production in the country, the levels of employment in the sector and
the need to effectively regulate the sector.
Zimbabwe Environmental Law
Association (ZELA)

28. recommendations
 Transparency and information disclosure.
 Clarity on environmental funds
 Clarity on rural development levies (Sec 75 vs 95/96 of RDC Act)
Zimbabwe Environmental Law
Association (ZELA)

29. Other Questions
 Where is the role of Parliament?-contract negotiation, disclosures
 What of annual reports or audit reports to the PPC on Mines and Energy
and/or PPC on Public Accounts?

30. Some Questions???
 Is there a separation of powers in granting title?
 Is the mineral licensing regime competitive and clear?
 Can Parliamentary veto a granted right or title?
 Does the law address the rights of small scale and artisanal miners,
informing them about both their rights and responsibilities?
 Does the law contain provisions on relocation of communities including
upholding the rights of community members in mining communities?
 Does the law provide for environmental protection?

31. What’s the role of Journalists in Mining
Communities?

32. Thank You