The recent Zimbabwean mining regulations will increase mining fees to levels that will make it impossible for small scale miners to regularise their panning activities, says Sternford Moyo, Senior Partner at Scanlen & Holderness, the Zimbabwean Lex Africa member law firm.
Moyo says: "The fees levels are clearly unaffordable in an environment characterised by liquidity challenges. Investor friendly policies are urgently needed as without external investment, there is no prospect of us being able to raise capital for the mining sector and benefit from our minerals resources in order to drive revival and growth of our economy."
As a point of reference the Ministry of Mines' statistics released by the Permanent Secretary recently indicate that the mining sector needs US$6 billion in investments. This amount cannot be raised from domestic financial markets. Zimbabwe's entire banking system has US$3 billion in deposits. Mining in Zimbabwe is a strategic sector which contributed 50% of Zimbabwean exports in 2011.
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