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By: Oscar Nkala <http://www.miningweekly.com/author.php?u_id=1022> Published on 30th January 2009 http://www.miningweekly.com/article.php?a_id=152180 BULAWAYO – Zimbabwe's central bank has proposed sweeping reforms to the country's mining sector which will leave the Zimbabwe Mining Development Corporation as the sole 'explorer and discoverer' of minerals, a strict monitoring of the production and refining and valuing of precious metals on site and a total ban on the export of unprocessed minerals such as gold, diamonds, chrome and platinum group metals. The proposals are among the key recommendations presented for a total reform of the economy by Reserve Bank of Zimbabwe governor *Gideon Gono*. The document, which essentially proposes a full scale 'Randisation' of the economy through the an adoption of the South Africa rand, pins all hopes of revival on the reform and full exploitation of all known mineral reserves in the country. Among the key proposals set to impact on the mining sector, the bank wants the ZMDC mandate revised to allow it to undertake the 'exploration and discovery' of new mineral deposits. It also seeks a total ban on the export of unprocessed platinum and the setting up of a government agency that will supervise the production, refining and valuing of gold, diamonds, platinum group metals and emeralds. The central bank chief also proposes the setting up of a special team to operationalise diamond mining at the Chiazdwa fields 'well in time for the adoption of the rand.' The steel sector is also targeted in a major way, with a proposal to privatise fading steel giant Ziscosteel and the promotion of the manufacture the local benefaction of stainless steel products through 'discouraging' the import of stainless steal, specialist steels and rolled steel plates. The bank also sets out an ambitious plan to revive the country's faded coal miner Hwange Colliery Company by restructuring its shareholding structure with a view to attracting new investors who can meet the huge capital needed to revive production. The reforms also extend to the chrome sector where the government will 'seek to promote small-scale chrome miners to set up more smelters around the country' while imposing a total ban on the export of chrome 'without value addition.' The reforms may also deal a heavy blow to two unnamed chrome producers whom the RBZ says hold 'vast swathes of unexploited deposits.' Against these, the bank proposes an application of a new 'use it' or 'lose it' law which simply means that companies can lose their rights for failing to exploit the deposits. The same law will be applied to nickel mining companies who have closed down for various reasons. The platinum sector will be placed under the spotlight, beginning with the setting up of a special taskforce that will draft legislation to guide the extraction and marketing of the mineral. A senior economist who declined to be identified finds it 'bizarre' that government has pinned all its hopes of revival on the mining industry. "It is not practical to say diamond exports, backed by a few minerals whose production at present is either depressed or totally stagnated. The RBZ cannot hope with sincerity that diamond revenues, which were a mere US$32 million for the whole of last year, will rise to US$1,2-billion per month." He said the government would also be shooting itself in the foot because while on one hand it says the reforms are aimed at reduce state regulation and increase "the interplay of market forces" in the mining sector, it goes on to focus on the use of bans in the export of unprocessed minerals. "Requiring mining companies to "use or lose" deposits, even where operations have been suspended because they are no longer viable forcing the ZMDC into a leading role in the mining industry shows a serious lack of vision and a total absence of the way this industry operates. "If allowed, this will be yet another disaster to befall the mining industry and it does not augur well for an industry that is already struggling," he says. No comment was available from the central bank. Editor: Oscar Nkala <http://www.miningweekly.com/author.php?u_id=1022> [image: Print]print<http://www.miningweekly.com/print_version.php?a_id=152180> | [image: Email]email<http://www.miningweekly.com/sendemail.php?a_id=152180> <http://www.addthis.com/bookmark.php> Hide Comments <javascript:Comment.hideComments();> Back To Top<http://www.miningweekly.com/article.php?a_id=152180#> -- "I want people to remember me as someone whose life has been helpful to humanity." 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