PATIENCE MATONO/BRENNA MATENDERE
MINING industry stakeholders have called on companies in the sector to support vulnerable victims of the El Niño drought and embrace sustainability through economic and social governance amid indications that mining is displacing agricultural activities.
The calls were made during an Environmental, Social and Governance (ESG) conference in Harare recently, involving mining companies such as Mimosa, Zimplats, Zimbabwe Consolidated Diamond Company, Zimbabwe Chamber of Mines, Zimbabwe Agricultural Show Society managers and top government officials.
Munyaradzi Hwengwere, chairperson of Minex, a virtual and physical platform which brings together smallscale miners, suppliers, regulatory authorities, and financiers to shop, share and learn, said mining companies have a key role to play.
“If you see projects of Zimplats and Mimosa in communities, you realise how significant mining is transforming lives. We need more to be done by mining companies, including saving lives of El Niño-induced drought victims while on the other hand encouraging them to sustain the environment,” Hwengwere said.
“As long as the mines are extracting minerals in the community, the mines must also be responsible for developing the communities and managing the environment well.”
Some mining companies are not publishing ESG reports. An ESG report details plans on tackling environmental degradation, climate change, human rights abuse and corruption in the mining sector.
Mines and Mining Development deputy minister Polite Kambamura said mining companies should come up with mine closure plans, which cannot be only implemented after a mine closure, but can be implemented gradually as mining operations proceed to avert environmental damage.
“I call upon mining companies to prioritise the well-being of local communities and respect and complement indigenous knowledge systems so that we build a community that we want,” Kambamura said.
He urged mining companies to adhere to the disclosure requirements on ESG performance which helps in the government’s decision-making and strategy formulation processes.
“Mining companies are expected to disclose their ESG performance, including envisaged environmental Chairperson of Minex Munyaradzi Hwengwere impacts, social initiatives and governance practices,” Kambamura said.
“This transparency helps stakeholders make informed decisions and my ministry also follows up on committed strategies. Let me say it is imperative that the mining sector continues to embrace and strengthen its commitment to ESG principles.”
He said the adoption of ESG practices needed to be taken seriously for sustainable development and longterm success.
“As a result, we need to come up with a holistic approach, that is, we need to consider the social aspect, the environmental aspect and the economic aspect of our operations,” Kambamura said.
“As we navigate through an era marked by growing environmental awareness, social responsibility and demand for transparent governance, the mining sector, considering its extractive nature, is found at a crossroads, where industry executives need to make organisational decisions as a matter of urgency.”
He said the integration of ESG principles into mining operations was not just a regulatory requirement or a corporate trend, but a requirement for sustainable development and longterm success.
“Those who attended the Chamber of Mines conference in Victoria Falls in May this year, I think you agree with me that the ESG issues were topical at the conference,” Kambamura added.
“I am happy to report that the Zimbabwe Stock Exchange has also embraced ESG reporting for companies listed on the exchange.”
Kambamura encouraged mining companies to move away gradually from the traditional mining methods with a history of land degradation and deforestation.
Mining and agricultural activities are the main contributors of Zimbabwe’s gross domestic product (GDP). Zimbabwe’s economic growth rose by 5.5% in 2023, after a 6.5% growth in 2022 due to an expansion in mining and agricultural and mining activity.
The mining sector employs over 45 000 people formally, contributes 16% to GDP and is currently Zimbabwe’s biggest target for international investors. Agriculture as the backbone of Zimbabwe’s economy contributes between 11% and 14% of GDP.
