Zimbabwe’s Mining Sector : Prospects & Challenges

1. Zimbabwe’s Mining Sector : Prospects & Challenges Mutuso Dhliwayo Zimbabwe Environmental Law Association

2. Outline of Presentation • Zimbabwe’s Mineral Resource Base • Contribution of the Mining Sector to Economic Development • Problems within Zimbabwe’s mining sector • Conclusion

3. Zimbabwe’s Mineral Resource Base/ Endowment • Zimbabwe has a significant and diverse mineral resource base • The Zimbabwe Geological Survey of 1990 lists no fewer than 66 base and industrial mineral deposits • 40 mineral deposits currently being deposited • Gold, coal, iron ore, platinum, diamonds, chrome, emeralds , black granite, lithium

4. Zimbabwe’s Mineral Resource Base cont’ • Second largest reserves of platinum • Third largest reserves of chrome • 25 % of world diamond market needs

5. Projected Growth Rates : 2011-2015Source: MEPIP, RBZ and MOF

6. Contribution of the Mining Sector to Economic Development • Zimbabwe’s Economic Problems • Mining will play a catalytic role in economic recovery • The mining sector has the capacity and potential of being the both the foundational & champion issue for the reconstruction of the country -2012 National Budget Statement

7. Contribution of the mining sector cont’ • Mining has the capacity and potential to create substantial impetus for economic growth & value addition – Medium Term Plan • Mining can help kick start economic recovery, stabilisation and eventual growth of the economy- ZMRTI • Mining sector is the core pillar of the country’s economic and social turn around and developmental plans. Success of the MTP is anchored on the mining sector - MMMD

8. Contribution of mining continued • Mining sector has grown at an annual rate of more than 30% since 2009 • Average contribution of the mining sector to the GDP has grown form an average 10.2 % in the 1990s to an average of 16.9 % from 2009-2011 • Mineral exports rose by about 23% over the 2009 -2011 period ( leading export earner )

9. Problems in Zimbabwe’s Mining Sector • Potential , comparative as opposed to competitive advantage • Curse of poor laws and polices • Importance of laws and policies in unlocking value from mineral resources • Old, archaic and colonial piece of legislation – Mines and Minerals Act [ Chapter 21:05] • Zimbabwe’s mining laws are criminal-Mutambara • Obscure legal regime codified in the Mines and Minerals Act - Biti

10. Problems in Zimbabwe’s mining sector • Does not recognise HR- violation of communities’ EESCR • Limited transparency and accountability • No access to information • Role of other stakeholders in the mining sector • Lack of participation by CBOs and CSOs in the policy and decision making institutions • No competitive licensing process with no mechanisms for public accountability

11. Problems in Zimbabwe’s mining sector cont’ • Corruption – NIEEBGATE and DIAMONDGATE scandals • Politicisation of the mining sector ie Community Share Ownership Schemes • Zimbabwe Mining Revenue Transparency Initiative

12. Conclusion • Mineral resource endowment • Potential of mining to contribute to economic development • Problems affecting the potential of the mining sector • Opportunities – New constitution, Draft Minerals Policy, development of a new Mines and Minerals Act

13. THANK YOU