Investors in the mining sector will soon be required to provide proof of funds for exploration before they are granted mining claims, Mines and Mining Development Minister Walter Chidhakwa said. This comes after the realisation that some investors have not been conducting exploration on their concessions, but rather holding the blocks for speculation.
“If Government is to give mining concessions, the investor must first put exploration money. We are still working on how much can be deposited,” said Minister Chidhakwa. “We don’t want anybody who comes and say I want a mining concession, especially the big concessions and you have not shown us the colour of your money. We want you to put money into an account and draw that money from your account for use in exploration.”
This annoucement took place in the context of the soon to be finalized Bill to repeal the Minerals and Marketing Corporation of Zimbabwe Act, which will enable the restructuring and renaming of the Minerals Marketing Corporation of Zimbabwe (MMCZ) and the establishment of the Minerals Exploration and Marketing Corporation of Zimbabwe.
The new corporation will have two main objectives of mineral prospecting and exploration and mineral marketing. Minister Chidhakwa said this would provide for a competitive and an investment focused legislative framework. He said the exploration approach would help diversification in the mining industry.
“We resolved to invest into mineral resources exploration in order to tap more investments. We have simply shifted our focus from marketing to exploration.”
Source: The Diamond Loupe