Local authorities in Zimbabwe have no legal power to impose fees on mining operations within their jurisdictions, legislators have confirmed, saying such authority rests solely with the Minister of Mines and Mining Development in consultation with other relevant government departments.
This position was clarified by the Parliamentary Legal Committee (PLC), which issued a damning report against recently gazetted Statutory Instruments by the Uzumba Maramba Pfungwe and Zvataida Rural District Councils. The instruments sought to introduce levies on firms engaged in extracting minerals — including granite and gold — within their areas.
The PLC’s finding marks a significant development for local councils that had sought to use such fees as a mechanism to ensure communities directly benefit from the exploitation of local mineral resources.
PLC Findings and Legal Basis
The PLC is an oversight body of Parliament tasked with scrutinising bills and statutory instruments to ensure they comply with the Constitution and relevant laws. In its report, chaired by Dr Edson Zvobgo, the committee found that the statutory instruments contravened the Mines and Minerals Act [Chapter 21:05], which expressly vests the power to impose levies on mining operations in the minister responsible for mining.
“Firstly, the Statutory Instrument is ultra vires the principal Act, as it seeks to confer power to the local council to levy miners for mining activities — a power not granted by the Mines and Minerals Act,” Dr Zvobgo said. “Section 255 of the Act clearly stipulates that the authority to impose levies on mining rests exclusively with the minister, who must act in consultation with other relevant ministries. Local authorities have no such mandate under the Rural District Councils Act, and any attempt to assume this power is unlawful.”
The PLC’s report stressed that while local authorities can impose fees on certain activities within their jurisdiction, mining is explicitly excluded.
“Secondly, the first schedule of the Statutory Instrument imposes permit fees on various activities conducted by miners,” the report reads. “However, Section 95 of the Rural District Councils Act explicitly excludes mining location owners from being classified as engaging in ‘specified business’ within the meaning of the Act. Consequently, these levies exceed the powers conferred to local authorities, rendering the instrument ultra vires.”
Parliament Rules Local Authorities Cannot Levy Mining Fees — Statutory Instruments Declared Ultra Vires
The committee further observed that the proposed penalties for contravention of the by-laws were beyond the limits prescribed under the Rural District Councils Act, adding another layer of illegality.
“Thirdly, the Statutory Instrument imposes penalties that exceed the maximum limits prescribed under Section 15:95 of the Rural District Councils Act. This not only places undue financial burdens on mining operators but also goes beyond the scope of authority conferred on local councils, thereby invalidating these provisions,” the report states.
The PLC also flagged constitutional concerns arising from the unilateral imposition of such fees. Section 68 of the Constitution guarantees the right to lawful, reasonable, and procedurally fair administrative conduct. By imposing levies without the legal authority, the statutory instruments undermined this right.
“The imposition of levies and penalties without legal authority constitutes a violation of procedural fairness and the rule of law,” Dr Zvobgo stated. “The principles of good governance under Section 9 of the Constitution demand that public administration be accountable, transparent, and lawful. The actions of the councils in gazetting these instruments contravened these constitutional principles.”
The PLC’s adverse report now moves to the full parliamentary plenary for debate. Should the report be adopted, the Statutory Instruments in question will be nullified, setting a precedent that could affect other local authorities across the country that may have sought to impose similar levies.
“This ruling will have far-reaching implications,” said a legal expert specialising in mining law. “It reinforces that mineral resource management and associated levies are matters reserved for national policy and oversight, not local jurisdiction, in order to ensure consistency and legal compliance.”
For local councils, the decision will require rethinking strategies for benefiting communities located in mineral-rich areas. Many had viewed levies as a way to fund local development projects, but the PLC ruling underscores that such initiatives must align with national legislation and ministerial oversight.
The committee emphasised that the statutory instruments usurped the powers constitutionally vested in the minister responsible for mining.
“Additionally, the committee noted that the Statutory Instrument unlawfully usurps the power to levy mining fees, violating the constitutional principles of legality and delegated authority,” said Dr Zvobgo. “We therefore conclude that Statutory Instrument 75 of 2025 is ultra vires the principal Act and contravenes Sections 9 and 68 of the Constitution.”
The parliamentary debate on the PLC’s findings is expected to be closely watched by mining companies, local authorities, and community stakeholders alike. For now, the ruling stands as a clear statement: the authority to impose levies on mining rests solely with the national government, and any deviation from this framework is unconstitutional and unlawful.
The decision affirms the need for clear legal frameworks governing local benefits from mineral wealth and reinforces the principle that local governance must operate within the boundaries set by national law.
Source- Heraldonline
