Climate Newsroom
Climate Newsroom
February 18, 2025 at 09:56 AM
Are mining regulations failing to protect Goromonzi residents from pollution and revenue leakages? Goromonzi residents are sounding the alarm over the shortcomings of current mining regulations, demanding stricter measures and a thorough review of the fiscal framework. They contend that ineffective penalties for pollution enable mining companies to inflict significant environmental damage while the local community reaps few rewards. During a recent stakeholder meeting organized by ActionAid Zimbabwe, in partnership with the Zimbabwe Council of Churches and the Publish What You Pay Coalition, residents voiced their concerns and sought to develop an action plan for implementing Environmental Sustainability Governance (ESG) at the grassroots level. Samuel Gamanya, an environmental monitor from Ward 13, criticized the small fines imposed on mining companies for pollution. “They pay a trivial amount and continue to pollute, while the community suffers from health impacts and land degradation,” he stated. The maximum fine of US$5,000 is deemed insignificant for large corporations, allowing them to flout environmental laws. Ward 17 councillor Tavengwa Bachi highlighted issues surrounding revenue distribution, claiming that the local community receives an unfair share of mining profits, pointing to the deteriorating condition of roads used by heavy mining vehicles. “Despite attending Environmental Impact Assessment meetings for years, we see no real development,” he lamented. Masimba Manyanya, representing the Goromonzi Residents Association, expressed frustration with the recent Finance Act, which he claims fails to address mineral resource leakages. “Mining companies pay royalties for just one mineral, even though they extract multiple resources. Would a Zimbabwean company be able to operate with such leniency in a country with strict regulations?” he questioned. Vimbayi Musikavanhu from ActionAid Zimbabwe added her insights regarding the Finance Act's implications for the mining sector. She noted that the new royalty payment system could lead to stockpiling issues and transparency concerns. “Better monitoring is essential. The 40% local currency payment was intended to support the exchange rate, but it may complicate revenue collection,” she explained. Musikavanhu warned that deductible royalties could undermine the tax base for mining companies, complicating government revenue collection efforts. “While increasing royalties might benefit government finances, it could also hinder the business environment. It’s crucial for the Zimbabwe Revenue Authority to have the capacity to manage tax collection effectively.”

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