Govt mulls use it or lose it mining law

According to Mpofu the new law would be based on the principal of use it or lose it for mineral deposits.
The proposed new mining law would be quickly pushed through Parliament to help revive growth in an economy that has contracted for the past decade, he said.
“We are going to come up with user friendly legislation. The bill will be finalised soon and presented to parliament in the current session. We are going to interact with the business people, Mpofu said.
He added: Things in Zimbabwe are moving at a speed which people wont believe. The countrys future in mining is bright.
Under the old draft mining law, new foreign investors would have been barred from holding more than 49 percent of a mining firm while existing business would have been forced to sell off stake to meet the requirement.
The changed draft mining bill will be submitted tabled during the current session of Parliament, according to Mpofu.
Zimbabwe Chamber of Mines president Victor Gapare told the same conference that poor electricity supplies that were enough to meet only about 60 percent of miners needs were hampering growth in the mining industry.
Gapare said Zimbabwes gold production slumped to 3.5 metric tons last year, from 27 tons in 1999.
Platinum production is likely to reach 1 million ounces a year in the next 15 years from 170,000 ounces a year now, said, Gapare, whose Chamber represents most medium and large-scale miners in Zimbabwe.
He said with proper incentives, gold production would rise to 50 tonnes per year by 2015 from 3.5 tonnes last year.