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Uncommonwealth PREFACE | 1 TRACING THE IMPLEMENTATION OF THE AFRICAN MINING VISION MINING THE AFRICAN OF THE IMPLEMENTATION TRACING Draft 2 RESEARCH REPORT 2014 UNCOMMONWEALTH: TRACING THE IMPLEMENTATION OF THE AFRICAN MINING VISION Report Prepared By The Mapungubwe Institute For Strategic Reflection(Mistra) Uncommonwealth 3 CONTENTS PREFACE 5 LIST OF ABBREVIATIONS 7 INTRODUCTION 9 CHAPTER ONE 16 BOTSWANA CHAPTER TWO 52 DEMORACTIC REPUBLIC OF CONGO CHAPTER THREE 95 SOUTH AFRICA CHAPTER FOUR 122 ZIMBABWE CONTENTS CONCLUSION AND 154 | RECOMMENDATIONS CONTRIBUTORS 157 TRACING THE IMPLEMENTATION OF THE AFRICAN MINING VISION MINING THE AFRICAN OF THE IMPLEMENTATION TRACING Uncommonwealth 4 PREFACE This report arose out of concern regarding the state of industrialisation and the mining industry in Africa. The African Union’s Africa Mining Vision (AMV) recognises that the key issue for development is the formulation and implementation of workable industrialisation strategies based on the continent’s unique strengths, rather than the emulation of strategies that may have been effective in other contexts beyond. The Vision claims that ‘many states now agree that most of what they wish to achieve through ownership in mining projects can be achieved through the regulatory process or policy and fiscal instruments’. This statement inspired the Southern African Resource Watch (SARW) to partner with the Mapungubwe Institute for Strategic Reflections (MISTRA) to interrogate the reasons why Africa, despite having an endowment in mineral resources, still rallies at the lower levels of the development ladder. The results of the examination culminated in a report which (a) assesses the extent to which African countries have aligned their mining policies with the African Mining Vision; (b) tracks the legislation and policy gov- erning the mining industry and evaluate to what extent they are adhering to the mining vision; and (c) evaluate and recommend the mining policy approaches aimed at maximising the benefits to the local people. Based on the objectives of the AMV, the study observed data on mining employment, ownership structures, beneficiation activities and other linked areas. Mainly literature reviews and interviews were depended PREFACE | on to assess the extent to which AMV has been embraced on the continent. Government policies, legislation and monitoring efforts were also assessed. Four countries – Botswana, the Democratic Republic of Congo (DRC), Republic of South Africa, and Zimbabwe – were sampled to represent developments in the SADC region. Each of the chosen countries is a mining nation endowed with mineral resources of different kinds. The countries, although all based in southern Africa, have different salient and historical facts which have guided the process of policy formulation and implementation. The report consists of four chapters plus an introduction and a conclu- TRACING THE IMPLEMENTATION OF THE AFRICAN MINING VISION MINING THE AFRICAN OF THE IMPLEMENTATION TRACING Uncommonwealth 5 sion. The country chapters were authored by independent researchers who were tasked with the process of undertaking the study in the par- ticular territory. In Botswana, Khaulani Fichani, who is a mining engineer based at the University of Botswana unravels the mining history and regulatory framework for the country. The DRC chapter is written by Tshombe Lukamba, a resource and public policy expert based at the North-West University in South Africa. Betchani Tchereni, a political economist at MISTRA, examines the mining policy and regulatory framework of South Africa. The Zimbabwe chapter is written by James Muzondidya, a political and economic governance expert based in Harare. The case studies were then assembled and compiled into this report. The discussion in this report is by no means exhaustive. It does, however, set out a range of issues affecting the mining industry in Africa on the basis of which further research and debates can be undertaken. We acknowledge funding from the Open Society Initiative for Southern Africa (OSISA) through Southern African Resource Watch (SARW). Our gratitude also goes to the peer reviewers and the sub-editors PREFACE | TRACING THE IMPLEMENTATION OF THE AFRICAN MINING VISION MINING THE AFRICAN OF THE IMPLEMENTATION TRACING Uncommonwealth 6 LIST OF ABBREVIATIONS AMDC African Minerals Development Centre AMREC African Mineral Resource Classification AMV African Union’s Mining Vision 2050 ANC African National Congress ASM Artisan and Small scale Mining BCM Botswana Chamber of Mines BEE Black Economic Empowerment BDC Botswana Development Corporation BIT Botswana Income Tax BITC Botswana Investment and Trade Centre BR Botswana Railways BOCCIM Botswana Chamber of Commerce Industry & Manpower CEDA Citizen Entrepreneurial Development Agency CIDA Canadian International Development Agency CMMI Council of Mining and Metallurgy Institutes CNRG Centre for Natural Resource Governance CoM Chamber of Mines (of South Africa) CSOT Community Share Ownership Trust CZI Confederation of Zimbabwe Industries DMR Department of Mineral Resources DRC Democratic Republic of Congo DTC Diamond Trading Company International DTCB Diamond Trading Company Botswana EA Environmental Audits EIA Environmental Impact Assessment ABBREVIATIONS | ETF Environmental Trust Funds EMP Environmental Monitoring Programme GEAR Growth, Employment and Redistribution Strategy GDP Gross Domestic Product GoZ Government of Zimbabwe GECAMINES General de Carrièreet de Mines GRI Global Reporting Initiative GTZ German Aid Agency HDSA Historically Disadvantaged South Africans HLCC High Level Consultative Committee HRD Human Resource Development HRW Human Rights Watch IMF International Monetary Fund TRACING THE IMPLEMENTATION OF THE AFRICAN MINING VISION MINING THE AFRICAN OF THE IMPLEMENTATION TRACING Uncommonwealth 7 LEA Local Enterprise Authority MCIMS Mineral Cadastre Information Management Systems MDGs Millennium Development Goals MEWR Ministry of Minerals Energy and Water Resources MEL Mineral Economic Linkages MIBA Societe Miniere de Bakwanga MMCZ Minerals Marketing Corporation of Zimbabwe MPC Minerals Policy Committee of Cabinet MPC Mining Promotions Corporation MQA Mining Qualifications Authority NDC National Defence College NDP National Development Plans NRZ National Railways of Zimbabwe NSR Net Smelter Return RDP Reconstruction and Development Programme SAIMM Southern African Institute of Mining & Metallurgy SAMDA South African Mining Development Association SAMREC South African Mineral Resource Classification SAP South African Police SBI Sustainable Budget Index SEA Strategic Environmental Assessment SLP Social and Labour Plans SOCOCOM Societe Congolaise de Commercialisation de Minerais (State Mineral Trading Company) SPEDU Selebi Phikwe Economic Diversification Unit SPV Special Purpose Vehicle SSA Sub-Saharan Africa SOEs State Owned Enterprises ABBREVIATIONS | TNCs Transnational Corporations UMHK Union Minière du Haut-Katanga (“Mining Union of Upper Katanga”) UNDP United Nations Development Programme VRIT Variable Rate Income Tax VTF Vocational Training Fund ZASMC Zimbabwe Artisan and Small Scale Miners Council ZIMASSET Zimbabwe Agenda for Sustainable Socio-Economic Transformation ZELA Zimbabwe Environmental Law Association ZMDC Zimbabwe Mining Development Corporation ZRP Zimbabwe Republic Police TRACING THE IMPLEMENTATION OF THE AFRICAN MINING VISION MINING THE AFRICAN OF THE IMPLEMENTATION TRACING Uncommonwealth 8 INTRODUCTION Background The importance of industrialisation in Africa cannot be overemphasised. With its many socio-economic problems, such as high unemployment, unstable growth rates, unequal distribution of wealth, high poverty levels and general underdevelopment, industrialisation becomes one of the most important elements that can provide the much needed leap into prosperity for Africa’s people (Lall, 1992; Lall, 2004; Kaluwa, 2010; Obeng, 2013). In the current economic discourse and dispensation, as Soludo (2005) has pointed out, African governments have now intensified a faster adoption of value-adding industrial development strategies over and above import substitution and export promotion policies. The mining sector is one such industry which drives economic activities. It is important to note the fact that Africa is a well-endowed continent in natural resources. As noted by the African Mining Vision (2009): ‘Africa is the world’s top producer of numerous mineral commodities and has the world’s greatest resources of many more…. Unfortunately, most of Africa’s minerals are exported as ores, concentrates or metals, without significant value-addition. There is thus a large potential for mineral beneficiation. Africa also has significant known resources of fossil fuels (oil, gas and coal) and has large biomass and bio-fuels potential (ethanol, bio-diesel), especially in the tropics’. INTRODUCTION | Indeed it is a paradox that the African continent has significantly large known deposits of minerals, with supplies of up to 31 percent of the world’s demand for bauxite, cobalt, gold, manganese, phosphate and uranium. Additionally, it supplies 57 percent of the world’s need for chro- mium and diamonds, and the hydrocarbon deposits are immense (Si- mons, 2012). Yet, the people of Africa are poor by many standards. TRACING THE IMPLEMENTATION OF THE AFRICAN MINING VISION MINING THE AFRICAN OF THE IMPLEMENTATION TRACING Uncommonwealth 9 Table 1: Some Leading African Natural Resources Mineral Production Rank Reserves Rank (World

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