Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Zimbabwe proposes to withdraw unused gold mining claims

Published 2017-05-19, 11:04 a/m
© Reuters.  Zimbabwe proposes to withdraw unused gold mining claims
CAL
-
MWA
-

VICTORIA FALLS, Zimbabwe, May 19 (Reuters) - Large gold mines in Zimbabwe could lose unused mining claims to the government, which is seeking to increase the number of small producers as part of its economic empowerment drive, a ministry of mines draft policy paper showed on Friday.

Gold is Zimbabwe's third largest export earner after tobacco and platinum. Small-scale miners have in the last four years ramped up output to nearly half of total production in 2016 on the back of financial and equipment support from the government.

A paper titled "Proposed Command Mining Initiatives" distributed at an annual meeting of the Chamber of Mines in Victoria Falls proposed to "implement the use it or lose it policy on mining claims (for) large mines sitting on unused mining claims."

The government planned "allocation of mining land from reserved areas to small-scale miners" and to reduce fees paid by mining companies and the time it takes to register a mine.

The paper did not specify which companies could lose mining rights. Gold producers operating in Zimbabwe include Caledonia Mining Corporation CAL.TO , Freda Rebecca, which is owned by AIM-listed Asa Resources Group ASA.L and unlisted London-based Metallon Corporation.

Zimbabwe's total gold output was 22.7 tonnes in 2016, according to national treasury figures, which has set a target of 30 tonnes this year.

Deputy Governor of the Reserve Bank of Zimbabwe Khupikile Mlambo told industry officials at the meeting that earnings from mining jumped to $853 million between January and May 12, up from $669 million in the same period last year.

Mlambo said gold exports had benefited from a 5 percent export incentive that producers receive in the form of "bond notes", a surrogate currency officially pegged at par with the U.S dollar.

(Writing by MacDonald Dzirutwe; Editing by Ed Stoddard and David Evans)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.