Minister Kambamura Warns Against Proxy Mining; New Investment Policy Imminent

BULAWAYO — Mines and Mining Development Minister Dr. Polite Kambamura has issued a stern warning to individuals facilitating "proxy mining" arrangements, signaling that the government is preparing strict measures to dismantle illegal sales of mining claims. Addressing delegates at the International Business Conference held during the Zimbabwe International Trade Fair (ZITF), Dr. Kambamura expressed deep concern over a rising trend where local individuals act as fronts for external investors in questionable, non-procedural deals.

The Minister highlighted that the government has observed a growing number of instances where mining rights are traded under the guise of facilitating investment, bypassing established legal frameworks.

"Those engaging in such activities should brace for a policy shift aimed at restoring order in the sector," Dr. Kambamura stated, emphasizing that mineral resources are finite and must be managed responsibly to secure long-term national gains.

In response to speculative behavior, the government is finalizing a comprehensive policy framework for the small-scale mining sector. Under the proposed reforms, the investment landscape will undergo significant changes, including:

• Minimum Capital Requirements: Investors will be required to meet set capital thresholds to qualify for mining rights.

• Rigorous Verification: Prospective investors must undergo thorough verification processes through the Ministry of Finance.

• Financial Proof: Proof of funds must be deposited with the Reserve Bank of Zimbabwe (RBZ) before any mining rights can be acquired.

These measures are specifically designed to eliminate speculative deals and prevent unregulated partnerships between locals and foreign investors.

Beyond regulatory enforcement, the government is introducing a new classification system for minerals, categorizing them into strategic and critical groups. Metallurgical coal has already been identified as the first "special critical mineral," a designation intended to unlock immediate investment within the coal sector. Dr. Kambamura also outlined plans to leverage Zimbabwe's coal reserves to address the nation’s energy deficit. The government intends to promote investment in thermal power generation utilizing cleaner coal technologies, a move seen as vital for industrialization and addressing electricity shortages.

"The forthcoming policy measures are aimed at bringing discipline to the mining sector, curbing disorderly practices, and ensuring sustainable exploitation of resources," the Minister concluded.

Zimbabwe mining proxy arrangements crackdown