‘Mineral smuggling, leakage a threat to economy’

Business
Taurai Mangudhla MINES and Mining Development deputy minister Gift Chimanikire blasted mining companies for lack of accountability that has seen Zimbabwe incurring massive economic losses.

Taurai Mangudhla

MINES and Mining Development deputy minister Gift Chimanikire blasted mining companies for lack of accountability that has seen Zimbabwe incurring massive economic losses.

Speaking at a meeting with small scale miners in Mazowe District on Tuesday, Chimanikire said smuggling and leakage of minerals were a threat to the economy.

 

“Whether you are talking of Mimosa, Blanket Mine or How Mine, declaration of produce is not being done,” said Chimanikire.

Chimanikire added that minerals were not being accounted for, especially in Marange where miners are reported to be bribing law enforcement agents to smuggle the precious stone to neighbouring Mozambique.

“This (smuggling of diamonds to Mozambique) draws back national development.  Look at Botswana; they have managed to develop growth points into towns,” he said.

To counter mineral smuggling, government last year proposed a Zimbabwe Diamond Act, meant to specifically regulate alluvial diamonds deposits in Marange.

The proposed law would not only give the state exclusive diamond rights, but establish criteria for the selection of mining partners and set a policing and anti-smuggling framework.

The Diamond Act, meant to forestall leakage and smuggling, comes in the wake of revelations that Zimbabwe could have lost more than US$30 million worth of diamonds mined in Marange as of last year.

Chimanikire said government was looking at provisions to allocate 10% of the Marange proceeds for community development and economic empowerment.

“We want to empower our people, illegal miners should register and become small scale miners, small scale miners should become medium scale miners and medium scale miners should be the large scale miners,” he said.