INDIGENOUS mining groups are bitter with the Mines and Mining Development Ministry over the recent hikes in mining fees, which they say will push them out of business.

 They have called on Government to urgently reverse the increases. The Zimbabwe Indigenous Economic Empowerment Organisation has since approached the Portfolio Committee on Mines and Energy seeking support to have the increases reversed 

Government hiked mining fees and licences by as much as 5 000 percent in some instances resulting in an outcry from the mining sector.

In their letter to the Portfolio Committee recently, ZIEEO president, Mr Paddington Japajapa, said the increase would undermine the indigenisation of the mining sector.

“The Ministry of Mines and Mining Development must explain why they are fighting black economic empowerment through gazetting exorbitant licence fees which are beyond the reach of the black majority,” he said.

“The funny part about the whole issue is that there is no differentiation between the fees for foreign investors and locals. How can the ministry just bunch everyone together, yet when we go to other countries licence fees for foreigners and locals differ because they want to protect interests of their citizens.”

Mr Japajapa said that exploration for new minerals would be reduced given the exorbitant fees, while corrupt activities would worsen.

He said the latest move would push out small indigenous players out of business and throw their families into poverty. Mr Japajapa urged the parliamentary portfolio committee to urgently convene an all stakeholders’ public hearing to chat the way forward.

The Harare chairman of the National Miners Association Mr Rhody Munyoro said the increases were tantamount to handing back mining rights to multi-national corporations.

“What this means is that we are giving back all mineral rights to multi-nationals. They are the only ones plus a few rich Zimbabweans who can afford to do mining,” he said.

“Government is chasing away all indigenous miners from the sector.”

Mr Munyoro said illegal mining and smuggling would rise because of the steep increases in licence fees.

“One very sad event which will take place is that most people faced with starvation will mine illegally and smuggle gold and other minerals,” he said.

“We will go back to the old ways where gold was not delivered to Fidelity Refinery. The country will lose millions of dollars instead of making it easier for local miners who will create employment and also add revenue to Government coffers.”

The new licence fee for prospecting is now pegged at US$500 from US$100, a prospectors licence for platinum is now US$500 000 from US$150, a licence to cut and polish diamonds now costs US$100 000 from   US$20 000, while a gold buying license has risen from US$2 500 to US$5 000. A gold milling licence is now US$8 000 up from US$2 000. Mines and Energy Portfolio Committee chairman Cde Edward Chindori-Chininga last week acknowledged receipt of concerns from miners and said they would look into the matter soon.

“We have received complaints over the issue and as a committee we are seized with the matter,” he said. 

Cde Chindori-Chininga has in the past criticised the strategy to raise revenue through licence fees saying Government should create an enabling environment for investment and raise more money through royalties and taxes.