Zim keen on mining transparency

04 Jan, 2019 - 00:01 0 Views
Zim keen on mining transparency Minister Mthuli Ncube

eBusiness Weekly

Africa Moyo
Zimbabwe is set to join a top global mining institution, the Extractive Industries Transparency Initiative (EITI), as it seeks to subscribe to international best practices in the management of natural resources.

EITI, the global standard for the good governance of oil, gas and mineral resources; endeavours to promote the open and accountable management of resources, and Zimbabwe believes it is critical to be a member of such an organisation.

Finance and Economic Development Minister Professor Mthuli Ncube says once Zimbabwe joins EITI, it would ‘‘benefit from strengthened public and corporate governance”.

“In order to move along with international best practices on achieving transparency in management of natural resources, Government would want to be a member of the Extractive Industries Transparency Initiative (EITI) as soon as possible,” said Prof Ncube.

“Membership is critical in order for the country to benefit from strengthened public and corporate governance, promote understanding of natural resource management, and provide the data that guide reforms for greater transparency and accountability in the extractives sector . . . it is critical that we move along with other countries in this agenda . . .”

In the 2019 Budget, Prof Ncube proposed to allocate $15,4 million to the Ministry of Mines and Mining Development for the move.

The EITI is guided by the belief that a country’s natural resources belong to its citizens, a view widely shared by Zimbabwe.

Once a nation subscribes to EITI, the standard requires the disclosure of information along the extractive industry value chain from the point of extraction, to how revenues make their way through the government, and how they benefit the public.

By doing so, the EITI seeks to strengthen public and corporate governance, promote understanding of natural resource management, and provide the data to inform reforms for greater transparency and accountability in the extractives sector.

Mining experts say joining the EITI would minimise conflict among nations particularly around the extraction of resources and the subsequent use of finances generated.

Currently, Zimbabwe is entrapped in a seemingly “no—winners” debate over the quantum of diamonds that were reportedly siphoned out of the country.Former President Robert Mugabe once sensationally claimed that Harare had lost upwards of $15 billion through underhand dealings which involved under—invoicing and conspiracy with some buyers.

However, he later backtracked saying: “It was just a figure. I was given that by some officials, that figure had been circulating around, but really it was not confirmed; it was just a story and there was that figure involved.”

Despite the former President’s about turn, some non—governmental organisations still insist that the country $15 billion from diamond mining, and it is hoped that if Zimbabwe presses ahead with joining EITI, such misunderstandings would be reduced or eliminated.

Founded in 2003, EITI has 51 member countries across the globe and in each of the implementing countries, it is supported by a coalition of Government, companies, and civil society.

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