Members of Parliament are pushing for the enactment of a new law compelling mining companies to comply with a supply-based empowerment model, it has been learnt. By our Chief Business Reporter
In its post budget analysis, the Parliamentary Portfolio Committee on Mines and Energy said the government should craft legislation that favours local suppliers.
This comes as most companies have submitted their plans to comply with the country’s equity laws compelling foreign-owned companies to sell 51% to locals.
“Government must put in place a legal instrument that encourages mining companies to procure mining supplies through Zimbabwe-based companies that manufacture mining supplies and Zimbabwe-based companies that are franchised to sell equipment and supplies by international suppliers,” reads the report in part.
The committee further advised the government to put in place a law which ensures that all major mining contracts are ratified by Parliament before they become binding. “At the same time, all major mining contracts should have a clause, which makes it mandatory for the contract to be reviewed after a certain period of time in order to reflect the socio-economic conditions prevailing at the time,” the report added.
Turning to the issue of mining royalties, the committee said there was need to overhaul the current regime of the levies amid concerns that revenues from minerals continue to trickle into State coffers.
