Mining in Zimbabwe is the main source of income for the state. The share of gold in exports is 60%. In 2016, a comprehensive reform of the country's diamond mining sector was carried out.
At the moment, Zimbabwe is gripped by an economic crisis, experiencing an acute shortage of fuel and power outages, and inflation has reached 520%! The country's authorities offer investors access to their minerals, trying to somehow mitigate the situation. In particular, Zimbabwe is trying to get a large bailout package from wealthy countries interested in minerals.
Exploration and production of new minerals in Zimbabwe is a national priority. Prospects for the creation of joint diamond mining and other mining enterprises in Zimbabwe are opening up. If you are interested in the opportunity to open a mining business in Zimbabwe, the right time is now.
Taking into account the growth of the middle class and, accordingly, the consumption of diamond jewelry in emerging markets, in the near future, an increase in the volume of African diamonds in the global market can be expected.
The main legislation governing the mining industry in Zimbabwe is the Mines and Minerals Act. This legislation has undergone changes in the past few years, and with it the procedure for registering a mining enterprise in Zimbabwe.
Subsoil use permit in Zimbabwe
There are various forms of obtaining mining rights in Zimbabwe. The simplest form is to obtain a mining permit in Zimbabwe. Often, several related applications from companies are combined into a block of applications in order to obtain a permit for the use of subsoil in Zimbabwe.
Provision of land plots for subsoil use purposes
The holder of the mining rights in Zimbabwe is entitled to the exclusive right to mine any ore or deposit of any mineral that occurs within the vertical boundaries of the region. However, in order to extract oil and gas, as well as coal, the company must receive a presidential grant.
Exploration and prospecting license for Zimbabwe
An exploration license can be issued as a regular license, which will be valid for two years. The exploration license itself is valid for five years. Both are renewable. Furthermore, he can obtain an exclusive permit that grants exclusive rights to prospect Zimbabwe's minerals at any specified location.
The transfer of rights to securities in Zimbabwe cannot be carried out to a foreign citizen or distributed to a foreign resident without the prior permission of foreign exchange control.
At least 51% of the shares of any mining company operating in Zimbabwe must be owned by indigenous people.
Disposal of rights and control of interests
Mineral rights in Zimbabwe cannot be transferred or disposed of in any way without the consent of the Mineral Commissioner. In the case of grants for the extraction of minerals or leases, the approval of the first person of the country is required based on the recommendations of specialists.
Transfer of a controlling stake to any Zimbabwean company requires local approval.
Royalties and taxes on mining in Zimbabwe
All miners pay royalties to the state for the exploitation of minerals because all minerals are owned by the state. Royalties are based on production and are payable in excess of income tax payable by miners.
Earlier this year, the Zimbabwean government banned mining in Hwange National Park in the west of the country. This decision was made on the basis of the fact that earlier two Chinese companies received licenses for the exploration and production of coal in Zimbabwe, in its largest reserve, home to more than 40,000 elephants, as well as many other rare species.
However, local conservationists have filed an urgent application, arguing that any type of mining poses a serious risk of irreversible environmental degradation and could negatively impact the country's tourism industry. The government supported the activists and imposed a ban on mining in the national park.
IQ Decision UK lawyers analyzed the regulatory features of mining in Zimbabwe, a state in the southern part of the African continent. Obtaining a mining license in Zimbabwe is one of the most important stages of launching a mining project in this state, especially since all natural resources are state-owned. If you intend to start a mining business in Zimbabwe, our experts are ready to provide comprehensive legal advice.