Mavunde orders review of small-scale mining levies

GEITA: MINISTER for Minerals, Anthony Mavunde, has ordered a technical review of levies and other statutory charges affecting smallscale miners, following concerns over how payments are treated as minerals move from extraction through processing to final sale.

The review will involve the Mining Commission, small-scale mining representatives and regional authorities, with the team expected to examine the system and recommend ways of protecting legitimate government revenue while making the treatment of payments clearer throughout the mineral production chain. Mr Mavunde said the government wanted to understand the practical concerns raised by miners before deciding whether changes to administrative procedures were necessary.

The issue comes as small-scale miners make a significant contribution to the country’s mineral economy, accounting for about 40 per cent of the 1.393tri/- collected from the mining sector during the 2025/26 financial year.

He said the review would consider how mineral consignments could be linked more closely to their source, movement documents and payment records, particularly where the same miner retains ownership of mineral-bearing material throughout different stages of processing.

Mining Commission officials explained that when a small-scale miner sells extracted material to another business, the transaction transfers ownership and separate statutory obligations may arise when the processed mineral is later sold.

However, miners asked the government to examine situations where ownership does not change, such as when a miner transports mineral-bearing material to another site for crushing, treatment or processing before selling the recovered gold.

Their concern is that receipts issued earlier in the process may not always provide officials at subsequent stages with a sufficiently clear record of payments already associated with the same material. Mr Mavunde directed the technical team to examine charging points, receipts, mineral movements and transaction records and establish whether earlier payments relating to the same material can be recognised when subsequent liabilities are assessed.

He said any changes must safeguard every legitimate government entitlement while ensuring compliant small-scale mining businesses are not subjected to unnecessary administrative costs because their minerals require several stages of processing before reaching the market.

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Miners also raised concerns over moving ore between mining and processing sites, particularly where suitable treatment facilities are unavailable within a licensed area. Procedures surrounding carbon transported for elution were also submitted for consideration. Mr Mavunde said practical experience from small-scale mining operations was important in identifying how regulations function on the ground.

He said the government was also increasing resources for mineral exploration, with 10 per cent of mining-sector collections being directed to exploration to support the identification of commercially viable deposits.

The Minister said the mining sector generated 411bn/- during the first quarter of the 2026/27 financial year against a target of about 351bn/-, equivalent to roughly 117 per cent of the target. FEMATA President, Mr John Bina supported the technical approach, saying the Government should retain effective safeguards while removing procedures that impose unnecessary burdens on legitimate small-scale miners.

Mr Mavunde said the joint team would submit recommendations after examining the revenue, legal and operational implications of the proposed changes.