Mashakada told more than 400 delegates gathered at the five star Rainbow Towers Hotel in Harare that the old one had had many loopholes.
"We lack geographical data in Zimbabwe," he said almost shocking delegates.
"We are developing another mining policy because the other one is old and did not cover many of the areas that we wanted."
The move comes at a time when Zimbabwe's mining industry is facing serious liquidity problems due to low investments from major international investors.
Last week the Minister of Youth, Indigenisation and Employment Creation, Saviour Kasukuwere, shocked the mining industry when he said he had cancelled the operating licence of the Zimbabwe Platinum Mines (Private) Limited (Zimplats).
Zimplats is a subsidiary of the wealthy Impala Platinum Mines Limited (Implats) based in South Africa.
It is among the world's major platinum producers earning billions for the broke Government of Zimbabwe.
In an about turn, however, Minister Kasukuwere had egg on his face when he was told by the Minister of Mines and Mining Development at the two-day Zimbabwe Mining Indaba that the government would "not cancel any operating licences of mining houses in Zimbabwe".
He said negotiations were ongoing about the new indigenisation regulations which have riled the local and international communities.
Under the new investment regulations Zimbabweans must have a 51 percent stake in any firm with a turnover of at least US$1 million.
Post published in: Business