Zimbabwe has decided to stop issuing new mining permits. This measure concerns minerals such as diamond, copper, lithium, nickel and rare earths. The decision was taken with immediate effect on 19 December by the Zimbabwean Minister of Mines Winston Chitando.
As the largest producer of lithium in Africa and the fifth largest in the world, Zimbabwe has recently embarked on a major project to develop its mining industry. The Zimbabwean executive intends to take full advantage of the large financial windfall generated by the exploitation of its strategic minerals. These are diamond, copper, lithium, nickel and rare earths. “We have recently seen a flood of applications for mining titles for minerals that have now been deemed strategic in the forthcoming Mining and Minerals Amendment Bill. It has therefore become necessary, in the national interest, to temporarily halt the acceptance and processing of applications for mining titles for the following minerals until further notice: diamond, copper, lithium, nickel and rare earths,” reports The Herald.
Fighting smuggling
In addition, the Zimbabwean authorities have decided that mining operators will have to submit a declaration of the amount of work carried out on mining concessions as well as a declaration on the evaluation of the minerals contained in the exploited deposit. Thus, the government’s decision came against the backdrop of the executive’s realisation that some miners had failed to declare their discoveries of certain minerals in the reports they submitted to the inspectorate, which would hamper the growth of the Zimbabwean mining sector. The authorities have also discovered that every year, precious and semi-precious stones are illegally sold to unregistered dealers who smuggle and export the gems in their raw form.
Increasing income from minerals
With this measure, Zimbabwe is again putting pressure on Chinese operators in the country. According to a report published in 2021 by the London School of Economics, mineral exports account for about 60% of Zimbabwe’s export earnings, while the mining sector contributes 16% of its GDP. This situation has led the authorities to take action to limit exports.
According to information published by The Herald “the extractive industry is one of the country’s key economic sectors, accounting for 73% of foreign direct investment, 83% of exports, 19% of government revenue, 2% of formal employment and 11% of personal income.
