As recent report published by ZimLive a court judgement in Zimbabwe has thrown the mining sector into disarray, with a potential consequence of shutting down over 70% of the country’s mines. The crux of the issue lies in the required order of obtaining permits.
The High Court, presided over by Justice Lucy Mungwari, ruled that miners must acquire an Environmental Impact Assessment Certificate (EIAC) from the Environmental Management Agency (EMA) before being granted a mining permit by the Ministry of Mines. This contradicts the previous practice where most miners obtained mining permits first.
Legal experts fear this ruling might have a retroactive effect, jeopardizing permits issued before 2003 when the EIAC requirement wasn’t explicitly mandated. The Zimbabwe Miners Federation (ZMF) estimates this could lead to the closure of over 70% of small and medium-scale mines.
The judgement has sparked outrage within the mining industry. Professor Lovemore Madhuku, representing the affected Avoseh Investment (a Chinese company), argues that a mining permit’s validity shouldn’t depend on the EIAC. He believes the environmental assessment should precede mining operations, not the permit itself .
A legal expert Nkosiyenzile Mpofu said terms the judgement “seismic” with far-reaching consequences. He fears it creates uncertainty for investors already wary of Zimbabwe’s mining environment due to concerns over legal implementation and investment protection.
Avoseh has challenged the ruling in the Supreme Court, and Sandawana, the state-owned company involved in the initial dispute, has already blocked Avoseh’s access to the minefield.
The Supreme Court’s decision will be crucial in determining the fate of Zimbabwe’s mining sector. A judgement upholding the High Court’s ruling could trigger widespread mine closures and deter future investment. Conversely, a reversal could maintain the status quo but raise questions about environmental safeguards.