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Mines
& Minerals Amendment Bill (H.B. 14, 2007)
Published
in the Government Gazette: Friday November 16 , 2007
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MINES
AND MINERALS AMENDMENT BILL, 2007
MEMORANDUM
This Bill will
amend the Mines and Minerals Act [Chapter 21:05] in order to achieve
the following main objects:
(a) to change
the composition of the Mining Affairs Board and to clarify and
extend its functions;
(b) to regulate
the activities of prospectors more closely, and to confine their
activities to specific areas defined by grids;
(c) to remove
the distinction between precious metal and base metal claims,
and to abolish the extra-lateral rights which holders of precious
metal claims enjoy at present;
(d) to alter
the current system whereby exclusive prospecting orders are issued
by the President, and substituting a system of licences issued
by the Minister of Mines;
(e) to provide
for mining title to be granted in the form of a mining lease,
where the title extends over four or more contiguous blocks;
(f) to require
holders of mining rights to work their claims rather than allowing
them to preserve their title by paying annual fees;
(g) to require
miners to establish funds or to make other provision to meet the
cost of restoring the environment when their mining operations
come to an end;
(h) to convert
certain special grants into mining leases;
(i) to remove
much of the excessive particularity from the Act (for example,
the detailed provisions setting out the way in which claims must
be pegged) and leaving such matters to be prescribed in regulations;
(j) to make
provision for the indigenisation and localisation of the mining
industry;
(k) generally,
to make the procedures under the Act more transparent and to allow
aggrieved persons a right of appeal to the Administrative Court
against decisions which affect their rights;
In more detail,
the individual clauses of the Bill contain the following provisions:
Clause 1
This clause sets out the short title of the Bill and will empower
the President to fix a date for it to come into operation, thereby
allowing time for the necessary regulations to be prepared before
the Bill comes into force.
Clause 2
This clause will amend or delete definitions contained in section
5 of the Mines and Minerals Act and will insert some new ones. The
amendments are consequential on the amendments made by later clauses
of the Bill. Of particular note in connection with consequential
amendments arising from the recent land reform programme is the
insertion of the definitions of “Gazetted land” and
“land resettlement lease”. The purpose of these definitions
is to facilitate the extension of the same protections that were
previously afforded to owners of private property to holders of
the 99-year leases recently issued to new farmers.
Clause 3
This clause will alter the composition of the Mining Affairs Board.
At present the Board consists of the Permanent Secretary for Mines
and four other officials in the Ministry, together with six members
appointed by the Minister to represent miners and farmers. Under
the new provision, the Board will consist of the Secretary and five
other named Ministry officials, plus nine further members at least
seven of whom will be appointed by the Minister to represent miners,
farmers and rural district councils.
Clause 4
This clause will repeal subsections (4) and (5) of section 8 of
the Mines and Minerals Act, which are inconsistent with section
7(1)(a) of the Act.
Clause 5
At present there is no provision in the Mines and Minerals Act regulating
the frequency of meetings of the Mining Affairs Board. This clause
will require the Board to meet at least once every two months (which
is what it does in practice) and will fix its quorum at half its
membership (at present the quorum is seven out of its 11 members).
Clause 6
Under the new section 10A which this clause will insert in the Mines
and Minerals Act, the Mining Affairs Board will be allowed to appoint
committees, with the Minister’s approval, and to delegate
some of its functions to those committees.
Under the new
section 10B the Board will be staffed by public servants assigned
to the Board by the Permanent Secretary of the Ministry.
Clause 7
This clause will give the Mining Affairs Board a general power to
extend periods within which applications are to be made or documents
are to be submitted to the Board, and will allow the Board to refer
questions of law to the High Court for decision.
Clause 8
Part III of the Mines and Minerals Act requires the Secretary for
Mines to keep a register of approved prospectors ? that is, a register
of persons who are permitted to prospect for minerals. This clause
will replace the Part with a new one which will change the term
“approved prospector” to “approved staking agent”
and will leave matters such as the qualifications for registration,
the issue of registration certificates and so on to be prescribed
in regulations. Regulations dealing with those matters will have
to give a right of appeal to persons who have been refused registration.
Clauses 9 and
10
At present, prospecting licences are issued under section 20 of
the Mines and Minerals Act and entitle the licensees, acting through
approved prospectors, to prospect for minerals anywhere in Zimbabwe
on land that is open to prospecting. These clauses will introduce
a new system under which the licences will be called “exclusive
prospecting licences” and will restrict each licensee to prospecting
within a single square-kilometre grid as shown on maps produced
by the Minister (it is envisaged that the grids will be the same
as those used for mapping purposes by the Surveyor-General). Each
licensee will have exclusive prospecting rights within his or her
grid.
Under the new section 21, an application for an exclusive prospecting
licence will have to be accompanied by a prospectus and report required
for the purposes of the Environmental Management Act [Chapter 20:27],
and anyone aggrieved by a refusal of a licence will have a right
of appeal first to the Minister and then to the Administrative Court.
Under the new section 23 the Minister will have power to cancel
a licence and, once again, an aggrieved licensee will be entitled
to appeal to the Administrative Court.
The rights
conferred by an exclusive prospecting licence are set out in the
new section 27, to be inserted in the Act by clause 10. A licensee
will have an exclusive right to prospect for all minerals within
his or her grid and to peg up to 100 claims, but these rights will
be exercisable only by approved staking agents. A licensee will
not be allowed to remove minerals from the land on which they are
found, except for the purposes of assay.
Clause 11
Sections 39 to 45 of the Mines and Minerals Act prescribe in great
detail how claims and blocks are to be pegged and registered. This
clause will replace those sections with three new ones which will
allow the details to be prescribed in regulations.
Clause 12
Sections 47 to 49 of the Mines and Minerals Act allow miners to
peg and use areas adjacent to their mining locations for the purposes
of erecting living quarters for their employees, operating mills,
placing waste materials, and so on. This clause will replace those
sections with a single one which will leave most of the detailed
provisions to be prescribed in regulations; the new section will
also give a right of appeal to the Administrative Court to miners
aggrieved by a mining commissioner’s refusal to register a
site and to landowners aggrieved by the pegging of a site.
Clause 13
Section 50 of the Mines and Minerals Act empowers a mining commissioner
to cancel the registration of sites or blocks of claims, giving
aggrieved persons a right of appeal to the Minister. This clause
will allow a commissioner to cancel registration certificates by
consent (this is not provided for at present) and will give aggrieved
persons a further right of appeal to the Administrative Court.
Clauses 14
and 15
These clauses will repeal sections 51, 55 and 56 of the Mines and
Minerals Act, which deal with the beaconing of mining locations
and the determination of the number of claims in a block ? the determination
in the latter case depending on whether the claims are precious
metal or base metal claims. This clause will repeal those sections,
leaving such matters to be prescribed in regulations
Clause 16
Part VI of the Mines and Minerals Act deals with exclusive prospecting
orders, which authorise persons to prospect for minerals over wide
areas of Zimbabwe. This clause will replace Part VI with a new one
which will alter the term “exclusive prospecting area”
to “exclusive exploration licence”. By and large the
new Part will follow the provisions of the existing one, omitting
the detailed provisions (which will be dealt with in regulations),
but will make the following changes:
- Applicants
for an exclusive exploration licence will have to be told of any
objections lodged against the applications, so that they can answer
them (see the new section 87(4)).
- The Mining
Affairs Board will be able to recommend the issue of a licence
without having to hold a hearing if no objections have been lodged
(section 88 (proviso)).
- Before a
licence is issued, the applicant will have to give the Board a
copy of the environmental impact assessment report which is required
in terms of the Environmental Management Act.
- The Minister,
not the President, will issue licences. The Minister will be obliged
to follow the Board’s recommendations regarding the issue
of a licence unless he considers it is not in the national interest
to do so.
- An applicant
will have a right of appeal to the Administrative Court against
the Board’s refusal to recommend the issue of a licence;
no such appeal is allowed at present (section 89(3)). Similarly,
if the Minister declines to follow the Board’s recommendation
to issue a licence the aggrieved applicant will have a right of
appeal (section 90(2)).
- Parliament
will have power, by resolution, to compel the Minister to revoke
a licence (section 92(3)). At present, though exclusive prospecting
orders have to be laid before Parliament, Parliament has no power
to disapprove them.
- The Board,
rather than the Minister, will have power to decide whether or
not to revoke an exclusive exploration licence, and persons aggrieved
by the revocation of a licence will have a right of appeal to
the Administrative Court (see the new section 110).
Clause 17
Section 123 of the Mines and Minerals Act empowers the Mining Affairs
Board to permit miners to peg and register underground extensions
contiguous to their mining locations. If the Board refuses to permit
a miner to do so, the miner can appeal to the Minister. This clause
will give a further right of appeal to the Administrative Court
against the Minister’s decision.
Clause 18
Part VIII of the Mines and Minerals Act deals with mining leases,
under which lessees may conduct mining operations within large areas.
This clause will replace Part VIII with a new one which, to a great
extent, follows the provisions of the existing one, but with the
following changes:
- The Mining
Affairs Board, rather than the Minister, will have power to issue
and cancel mining leases. Under the existing provisions, curiously,
the Board issues leases but the Minister cancels them.
- Anyone who
wishes to mine on reserved ground will have to obtain a mining
lease to do so. At present, such a person would apply for a special
grant under Part XIX of the Act. See the new section 136(2).
- Anyone seeking
the registration of four or more contiguous blocks of claims will
be obliged to apply for a mining lease in respect of them (see
the new section 136(3)).
- The grounds
on which the Board may refuse a mining lease are set out in the
new section 140(2) in more detail than in the equivalent provision
in the existing Part.
- Persons aggrieved
by the issue or refusal of a mining lease, or by the amendment
or revocation of a lease, will have a right of appeal to the Administrative
Court. See the new section 154.
- Lessees will
have to submit annual programmes to the Board showing the work
that will be completed during the next twelve months: see the
new section 148.
- Details of
such matters as the information that must be provided by an applicant
for a mining lease are not specified in the new Part but will
be left to regulations.
Clauses 19
and 20
Clause 19 will repeal sections 169 to 171 of the Mines and Minerals
Act, which deal with the mining rights of holders of precious metal
reef claims and give them extra-lateral rights (i.e., the right
to follow an ore reef underground beyond the vertical boundaries
of a claim). The rights of such holders will be the same as those
of other miners, as set out in section 172 of the Act. Clause 20
will make appropriate amendments to section 172 so that it applies
to all miners.
Clauses 21
and 22
The subsections of section 173 of the Mines and Minerals Act which
will be repealed by clause 21 deal with the conversion of precious
metal claims, and once the distinction between base metal claims
and precious metal claims is abolished. For the same reason section
174, which applies only to the conversion of precious metal claims,
will be repealed by clause 22.
Clause 23
Section 175 of the Mines and Minerals Act empowers a mining commissioner
to change the mineral in respect of which a block of base mineral
claims was registered. This clause will amend the section so that
it covers precious metal claims as well as base mineral claims.
Clauses 24 and
25
Sections 193 and 194 of the Mines and Minerals Act deal respectively
with miners’ rights to private and public water. The Water
Act [Chapter 20:24] no longer distinguishes between private and
public water, so these clauses will amend the sections accordingly.
Clauses 26
and 33
Section 203 of the Mines and Minerals Act defines the term “work”
for the purposes of Part XI of the Act. The effect of these clauses
is to move section 203 to the beginning of Part XI, where it is
more appropriately placed, and to insert additional definitions
in it.
Clauses 27
to 30
The effect of these clauses is to allow the particulars to be included
in an application for an inspection certificate to be prescribed
in regulations. The clauses will also require applicants to provide
environmental impact assessment reports, and to up-date them at
prescribed intervals.
Clause 29 will
in addition repeal subsections (6) to (8) of section 199 of the
Mines and Minerals Act, which give aggrieved persons a right of
appeal to the Minister against a decision by the Mining Affairs
Board to declare a mining location to be forfeited. A general right
of appeal against such decisions is granted by the new section 221C
which will be inserted in the Act by clause 40.
Clause 31
Section 201 of the Mines and Minerals Act allows a mining commissioner
to inspect a miner’s development work before issuing an inspection
certificate to the miner. This clause will give the commissioner
power to inspect any work, not just development work.
Clause 32
The amendments which this clause will make to section 202 of the
Mines and Minerals Act are consequential on amendments effected
by other clauses to Part XI of the Act.
Clause 33
This clause has been dealt with above in conjunction with clause
26.
Clause 34
Section 205 of the Mines and Minerals Act, which prescribes the
amount of work needed to obtain an inspection certificate, distinguishes
between precious metal and base mineral claims. That distinction
is being abolished, hence the new section 205 which this clause
will insert in the Act.
Clause 35
This clause will repeal subsection (1) of section 211 of the Mines
and Minerals Act, since it has been incorporated into the definition
of “work” in the new section 196A, inserted into the
Act by clause 26.
The effect
of paragraph (b) of the clause will be to give a right of appeal
to the Administrative Court against a decision of the Mining Affairs
Board as to whether any particular expenditure incurred by a miner
can be counted as “capital expenditure” for the purpose
of obtaining an inspection certificate.
Clause 36
Section 212 of the Mines and Minerals Act allows inspection certificates
to be obtained (and hence mining rights to be preserved) through
the payment of fees rather than through development work or production.
This clause will repeal the section.
Clause 37
This clause will clarify the meaning of proviso (i) to section 214(2)
of the Mines and Minerals Act.
Clause 38
Section 217 of the Mines and Minerals Act is to be repealed because
it will be re-enacted with modifications as section 221B (see clause
40). Sections 218 and 219 deal with the amount of work required
for the preservation of precious stones blocks, alluvial, and other
specific types of claims. These claims are to be treated in the
same way as other sorts of claims, so the two sections will be repealed.
Clause 39
The amendments to section 221 of the Mines and Minerals Act that
will be effected by this clause are consequential on the abolition
of the distinction between precious metal and base metal claims.
Clause 40
This clause will insert three new sections into Part XI of the Mines
and Minerals Act, which deals with the preservation of mining rights
through work and development.
The new section
221A will require a mining commissioner to report to the Mining
Affairs Board any failure on the part of the holder of a mining
lease to obtain an inspection certificate within the prescribed
time. The new section is based on the present section 263(1) and
(2) of the Act.
The new section
221B will re-enact section 217 of the Act, defining more clearly
the circumstances in which the Minister may issue protection certificates.
The new section
221C will give a general right of appeal against decisions under
Part XI; ultimately, aggrieved persons will be able to appeal to
the Administrative Court and from there to the Supreme Court.
Clause 41
This amendment to section 232 of the Mines and Minerals Act (on
special payments to owners and occupiers of land on which work any
alluvial or eluvial deposits are being worked) will, in addition
to owners of private land, also permit holders of the 99-year leases
recently issued to new farmers under the land reform programme to
benefit from the payment of the special levies imposed on miners
who work such deposits.
Clause 42
This clause will insert a new Part into the Mines and Minerals Act,
dealing with environmental protection. Under the new section 257B,
large-scale miners (i.e. miners whose output exceeds a prescribed
amount) will be required to establish environmental rehabilitation
funds to finance any work needed to restore the environment when
they cease mining operations. Miners who have more than one mining
location will be allowed to establish a single fund to cover all
their locations. Environmental rehabilitation funds will be vested
in independent trustees and will be constituted under trust deeds
that will require the approval of the Mining Affairs Board: see
the new sections 257C and 257D. The funds will have to be audited
annually (section 257E) and kept under regular review by the Board
(section 257F). It will be possible for two or more miners to combine
to establish a single fund, or to contribute towards a fund established
by a financial institution or a body such as the Chamber of Mines.
See section 257G. Small-scale miners will have the option of establishing
their own environmental rehabilitation funds or of contributing
towards a fund established by a financial institution or a trade
body; if they do not exercise that option, they will have to pay
contributions to the Environment Fund established by the Environmental
Management Act. See the new section 257H. As an alternative to establishing
an environmental rehabilitation fund or contributing towards such
a fund, the Board will be allowed by the new section 257I to accept
a guarantee from a mining company that it will complete the necessary
environmental protection work. Such a guarantee will be subject
to regular review by the Board in the same way as a fund. Miners
who establish or contribute towards environmental rehabilitation
funds, or who pay contributions to the Environment Fund, will be
exempted to a prescribed extent from paying the full amount of the
levies under the Environmental Management Act in respect of their
mining operations: see the new section 257J. Compliance with these
new provisions will not absolve miners from their legal obligations
to minimise environmental damage (section 257K), and the Minister
will have power to make regulations requiring miners to take out
insurance against any accidental damage they may cause (section
257L).
Clause 43
The repeal of section 262 of the Mines and Minerals Act is consequential
on the repeal of section 218 of the Act by clause 38.
Clause 44
The new section 263 which this clause will insert in the Mines and
Minerals Act is a simplified version of the existing section.
Clauses 45
and 46
Clause 44 will repeal subsections (3), (4) and (5) of section 265
of the Mines and Minerals Act, which allows the Minister to order
the forfeiture of a mining location if the miner refuses to allow
a dump to be utilised. The subsections give a right of appeal to
the High Court against the Minister’s order, but they will
be superseded by the new section 271A, inserted in the Act by clause
45, which gives a general right of appeal to the Administrative
Court.
Clauses 47
to 49
Part XIX of the Mines and Minerals Act empowers the Secretary for
Mines to issue special grants allowing prospecting or mining operations
to be conducted on land that has been reserved against prospecting
and pegging, while Part XX of the Act empowers the President to
issue special grants for the mining of coal, mineral oils, natural
gases or nuclear energy source material. The effect of these clauses
is to abolish the first sort of special grants (they will be dealt
with as mining leases) and to expand Part XX of the Act to include
some of the provisions at present in Part XIX.
Clause 50
This clause will insert a new section 341A in the Mines and Minerals
Act requiring the Mining Affairs Board, the Minister and all officials
to observe the rules of natural justice — that is to say,
to act fairly, to listen to arguments put forward by interested
parties, to provide reasonable access to information, and to give
reasons for their decisions. Much of the subject-matter of the new
section is covered by the Administrative Justice Act [Chapter 10:28].
Clause 51
Section 342 of the Mines and Minerals Act empowers the Minister
to fix the boundaries of mining districts. The new proviso inserted
by this clause will ensure that the boundaries follow the grids
defined by the Minister in terms of the new section 20 (as to which,
see clause 9).
Clause 52
This clause will extend and up-date the Minister’s power to
make regulations under section 403 of the Mines and Minerals Act,
and will also insert a new provision (subsection (3a)) ensuring
that any fees imposed under the Act are reasonable.
Clause 53
This clause will insert two new sections into the Mines and Minerals
Act.
The new section 403A will simplify the way in which documentary
evidence regarding mining rights is produced in court. It will also
indicate how disputes over the boundaries of mining locations are
to be resolved.
The new section
403B will regulate the composition of the Administrative Court for
the purpose of hearing appeals under the Mines and Minerals Act
and will regulate the court’s powers and procedure in such
appeals.
Clause 54
This clause will insert in the Mines and Minerals Act a new Part
(Part XXX) on the indigenisation of the mining industry. The Part
consists of the following new sections:
Section 408
This contains the definitions of terms used in Part XXX. Of particular
note is the definition of “strategic energy mineral”,
which includes:
- coal;
- coalbed methane;
- petroleum;
- uranium;
- any other
mineral related to the generation of energy as the Minister may
prescribe by statutory instrument for the purposes of Part XXX;
Also noteworthy
is the definition of what is meant by the “non-contributory
interest” of the State in mining enterprises engaged in the
mining for strategic energy minerals or precious metals or precious
stones. The definition makes reference to the State’s right
to such an interest by virtue of its original ownership of all useful
minerals in its subsoil.
Section 409
Part XXX will not apply to any person who is a “small-scale
miner”, as defined in the new section 408. Nor will it apply
to persons or mining companies that, on or after the date of commencement
of section 54 of the Mines and Minerals Amendment Act, 2007, are
parties to any agreement with the State or any statutory body for
the extraction or exploitation of any mineral. Neither will the
provisions relating to the non-contributory interest of the State
in mining enterprises Part apply to mining companies in which at
least a quarter of the shares are held by the State.
Section 410
This new section prohibits any person (individual, partnership or
other unregistered association) from being involved in any mining
for strategic energy minerals or precious metals or precious stones,
unless that person is registered or incorporated as a company.
Section 411
This new section sets out the objectives of the Government to:
- Obtain a
25% non-contributory interest in every mining company engaged
in the extraction and exploitation of any one or more strategic
energy minerals or precious metals or precious stones;
- Obtain a
25% contributory interest in every mining company engaged in the
extraction and exploitation of any one or more strategic energy
minerals;
- Require
every mining company engaged in the extraction and exploitation
of any one or more precious metals or precious stones, to make
available 25% of its shares available for acquisition by the State
or indigenous Zimbabweans;
- Require every
mining company engaged in the extraction and exploitation of any
mineral other than a strategic energy mineral, precious metals
or precious stones,, to make available 51% of its shares available
for acquisition by the State or indigenous Zimbabweans.
Section 412
This new section requires an audit to be done by every mining commissioner
of the life of every mine worked by mining companies engaged in
extracting or exploiting any strategic energy minerals or precious
metals or precious stones, and the total amount by size or volume
of the reserves of those minerals which those companies are entitled
to extract or exploit. For that purpose a mining commissioner may
demand relevant information from every mining company concerned,
and penalties are provided in the case of refusal. The audit must
be completed within three months of fixed date or within three months
of the mining company concerned commencing operations, whichever
is appropriate. Upon completion of the audit the mining commissioners
will record the results in returns and transmit those returns to
the Chief Mining Commissioner, who will, within 30 days of receiving
them, consolidate them and send copies of thereof to the mining
companies concerned. The mining companies will be afforded an opportunity
of challenging the contents of the return relating to them by appeal
to the Minister and, ultimately, to the Administrative Court. The
returns are essential for the purpose of determining the liability
of the mining companies for strategic energy minerals tax or precious
minerals tax, or both.
Section 413
This new section subjects every existing mining company engaged
in extracting or exploiting any strategic energy minerals or precious
metals or precious stones to liability for strategic energy minerals
tax or precious minerals tax, or both. The tax is charged:
- as royalty
of 25% of the total unbeneficiated annual value of the production
of any strategic energy mineral or precious metals or precious
stones by the company; or
- at the rate
of 25% of the estimated value of the total strategic energy mineral
or precious metals or precious stones reserves which that company
is entitled to extract and exploit, where the company has not
produced any of the taxable minerals during the period of 12 months
ending on the 31st December in which it must pay the tax, or has
not produced any of the taxable minerals in any 6 or more of those
months,
It is made clear
that the purpose of the tax is to encourage compliance by the mining
companies concerned with the objectives outlined in the new section
411, and the liability may be discharged in the manner set out in
the new section 414 outlined below.
In terms of
subsection (4) of this new section, if a mining company engaged
in the extraction or exploitation of any one or more strategic energy
minerals, precious metals or precious stones ceases operations or
is wound up or dissolved at any time after or within a period of
three months from the fixed date, it shall become immediately liable
for strategic energy minerals tax or precious minerals tax, or both,
with effect from the date on which it ceases operations or is wound
up or dissolved.
Section 414
This new section enables every mining company engaged in extracting
or exploiting any strategic energy minerals or precious metals or
precious stones to avoid liability for strategic energy minerals
tax or precious minerals tax, or both, by vesting in the State,
free of any charge or encumbrance, title to not less than 25% of
its shares. If it does not do so after two successive periods ending
on the 31st December from the date it when it became liable for
strategic energy minerals tax or precious minerals tax, the company’s
liability for the tax will escalate by 1% for each year during which
it continues to be liable for the tax.
Section 415
This new section provides for the manner in which the State may
finance its contributory interest in mining companies engaged in
extracting or exploiting any strategic energy minerals or precious
metals or precious stones.
Sections 416
and 417
These new sections provide for the indigenisation or localisation
of existing and future holdings of mining rights, and relates both
to those mining rights that are held by mining companies engaged
in extracting or exploiting any strategic energy minerals or precious
minerals, and mining rights held by other persons or entities. It
requires that a controlling interest in all mining enterprises must
eventually be held by the State or indigenous persons. A right of
first refusal for the purchase of the shares in any mining entity
is given to the State and to indigenous Zimbabweans. Future mining
enterprises will either be required to comply immediately with the
indigenisation or localisation requirements, or, like existing enterprises,
may also be given time within which to comply. A timetable is set
out within which existing or future mining companies must be localised
or indigenised, as follows:
- in relation
to every mining company which on or after the fixed date is engaged
in the extraction and exploitation of any precious metals or precious
stones—
- at least
10% of its shares shall be owned by the State or one or more indigenous
Zimbabweans, no later than two years from the fixed date or (in
the case of future mining enterprises) the date of the company’s
incorporation or registration as a mining company or the date
when it acquired the relevant mining right, whichever is the later
date;
- at least
20% of its shares shall be owned by the State or one or more indigenous
Zimbabweans, no later than five years from the foregoing date;
- at least
26% of its shares shall be owned by the State or one or more indigenous
Zimbabweans, no later than five years from the foregoing date;
- in relation
to every mining company which on the fixed date is engaged in
the extraction and exploitation of any mineral other than a strategic
energy mineral, precious metals or precious stones—
- at least
20% of its shares shall be owned by the State or one or more indigenous
Zimbabweans, no later than two years from the fixed date or (in
the case of future mining enterprises) the date of the company’s
incorporation or registration as a mining company or the date
when it acquired the relevant mining right, whichever is the later
date;
- at least
40% of its shares shall be owned by the State or one or more indigenous
Zimbabweans, no later than five years from the foregoing date;
- at least
51% of its shares shall be owned by the State or one or more indigenous
Zimbabweans, no later than seven years from the foregoing date.
Wilful failure
to achieve these targets may render the mining company concerned
liable to have all its mining rights cancelled by the Chief Mining
Commissioner.
The timetable
will be adjusted accordingly on a pro rata basis where the life
of the mine or reserves worked by the mining enterprise is less
than 10 years.
Clause 55 and
Schedule
This clause, as read with the Schedule to the Bill, will make minor
consequential amendments to the Mines and Minerals Act.
Clause 56
This clause deals with transitional matters such as the preservation
of existing rights, the continued validity of existing appointments,
the conversion of existing exclusive prospecting orders to exclusive
exploration licences and of special grants to mining leases, and
so on.
Clause 57
This clause corrects some errors in the Precious Stones Trade Act
[Chapter 21:06] that arose in connection with the enactment of the
Precious Stones Trade Amendment Act, No. 10 of 2007.
Schedule
The Schedule to the Bill has been dealt with in conjunction with
clause 53.
PRESENTED BY THE MINISTER OF MINES AND MINING DEVELOPMENT
BILL
To
amend the Mines and Minerals Act [Chapter 21:05] and to provide
for matters connected therewith or incidental thereto.
ENACTED by the
President and the Parliament of Zimbabwe.
1 Short title
and date of commencement
(1) This Act
may be cited as the Mines and Minerals Amendment Act, 2007.
(2) Subject to section 54(2), this Act shall come into operation
on a date to be fixed by the President by statutory instrument:
Provided that
the President may fix different dates of operation for different
provisions of this Act.
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