eBusiness Weekly
Business Writer
Mining companies will soon be paying uniform land development fees to Rural District Councils (RDCs) and this is part of efforts by authorities to improve the easy of doing business.
Presently, individual RDCs have been left to determine land development fees on their own and the result has been huge discrepancies on what is being paid from one RDC to the other.
So huge has been the discrepancies that some have been accused of extorting miners thereby inhibiting development, while others stand accused of funnelling out natural resources for a song due to meagre fees charged.
According to Mines and Mining Development Minister Winston Chitando, Government would like to see a situation where a national standard is set for every mineral across the country and the fees be good for both the investors and communities.
“One of the issues that we would like to see addressed for all minerals is that you find that some Rural District Councils charge very little in terms of levies, some charge too much,” said Minister Chitando on the sidelines of a black granite mining venture in Mutawatawa (Mashonaland East) last Thursday.
“So what we would like is to have a standard Rural District Council levy across the country.
“Someone who is mining black granite here in Mutawatawa should be charged the same as someone mining the same mineral in Mutoko, someone in gold mining in Mutoko should be charged the same as someone mining gold in Bubi,” said Minister Chitando.
He said Government had already initiated discussion with RDCs towards the achievement of this uniformity and hope was that this will yield results sooner than later.
Chamber of Mines of Zimbabwe president, Elizabeth Nerwande, said Government’s intention was noble and welcome.
“The intention by Government to standardise the land development levy across RDCs is a welcome development and well supported by the Chamber of Mines,” said Ms Nerwande.
“This standardisation is expected to provide a fair and equitable levy for mineral producers. We believe in the long term sustainability for both communities and mining entities.
“Attaining a balance between business viability and community development, is a fundamental principle for modern socioeconomic development of any nation.
“As we rearrange ourselves to remain in business and relevant to our operations, it is important to balance between return on our investments and benefit to the nation in a win – win situation,” she said.
The industry has been given a target to grow its exports from US$2, 7 billion in 2017 to US$12 billion from 2023.
