via Chidhakwa wants tougher mining laws | The Source December 2, 2013
Zimbabwe’s mines minister, Walter Chidhakwa says African countries should have tougher mining laws to benefit more from their natural resources.
“This why in Zimbabwe we say without any fear or apologies that when you come to Zimbabwe, you are coming to mine platinum, gold, and other minerals and the fact that you have applied your logical expertise to find it (mineral) does not make it yours,” Chidhakwa told African delegates attending a five-day conference on natural resources that opened in the capital on Monday.
He said the current mining sector structure, which was established during the colonial era, promoted creation of primary jobs which did not translate into economic development.
“As Africans you must be able to see and evaluate that model and say it is not a sustainable model because it has not worked for 100 years,” he said.
He said Zimbabwe will not pay for shares given to local blacks under the empowerment law.
“When it comes to the balance sheet of your company, it (minerals) must be recorded as a contribution of the people of Zimbabwe. And therefore there is nothing like we can’t get 51 percent in a company we have not put money into,” he said.
Chidhakwa challenged foreign companies to build infrastructure in the country as a sign of commitment and took a swipe at those that were using local resources as collateral to borrow money on the international market referring to it as “criminal.”
“Who is leveraging Africa’s resources and for whose benefit. And until and unless we are prepared to take real measures, this system will not create opportunities for our people and our children,” he said.
Chidhakwa said African countries need to create hubs for value addition, especially for minerals such as copper and platinum.
“Industrialisation arising out of the value addition of our raw materials is where we must go and unless we go there, we will always be poor.
“In the mining sector you could have the small producers with concentrators sending (their minerals) to other countries which have smelters and refineries,” he said.
The workshop, organised by the African Community of Practice on Managing for Development Results (AfCoP-MfDR,) seeks to among others establish a platform on natural resources management for an effective implementation of the African Mining Vision (AMV) adopted four years ago by African Union Heads of State.
The AMV seeks to create a transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development.
COMMENTS
An ordinary primary school teacher heading a critical ministry just becauise he is related to the president, what a shame!!!!!!!!
Mugabe was a primary school teacher too but he is leading the country. Whats wrong with being a primary school teacher. Hats off to primary school teachers and all teachers for that matter because they spend at least six hours per day with our children, helping to create and mold future leaders like Paidamoyo
Mugabe has led the country into the sewer. Although teachers make valuable contributions to society, but that does not mean that they know how to run a country.
Bye, bye foreign investors! You won’t be allowed to make any money in Zimbabwe, so don’t waste your time. We’ll just sit here and eat our precious dirt!
Tell us Chidhakwa,what happened to the diamonds?You see,it is you and zanu that is making us poor!
we need to read and understand what it means to have laws that protect our natural resources, not just look at who is calling for this law and condenm it just because you do not like his/her team. what is wrong with having 51% share of a company that is mining our gold because at the end of the day what is sold (to make a profit) is the gold not the equipment or capital the foreigner brought in….at the beginning of the venture…the foreigners input might be about us$10 million but in that same year or the next he/she would be making $2,5 million each month even with 51-49% law in place, so who is making the money out of nothing. think about it why do we still have investors comming in to start mining with the 51% law in place- because they are still making a lot of money. after the resources are finished what is going to happen…our minerals are more important than just pleasing some investor who does not even care about you…chengetedza chako nokuti hapana angabva kumwe kuzokuchengetera.
The same countries which glorify our anti-foreign investors principles are busy using these investors to discover more valuable minerals and natural gas at our expense.In about 10 years time they will be more developed compared to us.No country can survive without outside investors who have the modern technology and knowledge.Resources can be abundant but they require knowledge and technology to extract them from the ground.In politics popularity can be a serious weakness and very costly to generations to come.Let us be logical and pragmatic when we deal with investors.
I support Chidhakwa 100%. Most foreign companies are coming to steal and rip us of endored wealth,including Chinese. Its only a sheepskin in chinese. they have their nation at heart no wander why they make makeshift processing plants.
Inga zita raMinister of Mines rino taura rega wani, “Chidhakwa”, what do you expect from a primary school head playing politics (mappet show), you are right in wanting us to benefit from the wealth but where does it go? Most of it will go to the Chiyangwas of this world who have more than 100 properties as stated by the wife in her divorce claim. Is it right to rob a bank and distribute the money amongst your pals, ……….. or you are all thieves fulstop?
Here we go again rapping the mining companies, when the real problem is instead our government and operational systems. Mr Minister- the real question is – Is the extractive resource revenue being properly accounted for at this stage? Be rest assured that tougher mining laws without accountability and transparency mean nothing if there are no proper mechanisms and a concerted intentional effort by the government to ensure that the revenue from our minerals flows downstream to benefit all. What stands in the way of us benefiting from our extractive resources is not the mining companies but our very own government which is disgustingly corrupt and of course its opaque operations.Until you deal with corruption and put transparency and accountability at the forefront of all dealings in the mining sector – only then will we see Zimbabwe (not just a handful of elite) benefiting from our resources.
Once again very disappointing comments from the Minister…who once upon a time used to make sensible comments when IC of ZIA!!
Tougher mining laws will further put money in the pockets of dictators like Mugabe, since the Chinese will continue want to mine under the carpet, and money laundering will continue.
Accountability and transparency are the cornerstone of any prosperous economy. With 95% – 5% distribution, without sound management zvinhu zvinoramba zvaka”dhakwa”
I think if we tak tha route its going to be difficult because rational investers consider various factors bfore investing especially taking half equity. Why can’t we look at other alternatives or else why cant we invest in young people for the future rather than sending yo dull kids and relatives to gud universities and they bring nothing. We need a wel balanced policy fo Greenfield investment and sustainable development we need practical way forward
It was the Colonialists that built this country from the sale of minerals it mined. What has this Government done with any money earned from mining? Answer absolutely NOTHING. Just like the farms
that have not produced anything, so will the mines when they take them.
exactly!could not have said it better.