Chapter 9: Summary, Discussion, Theoretical Issues and Policy Directions
C. Socially responsible human resources management
3. CHAPTER THREE: AN OVERVIEW OF ZIMBABWE’S GOLD MINING SECTOR AND THE CONTEXT OF THE STUDY
3.6.2 Environmental quality
The Environmental Management Act (20:27) provides for the sustainable management of natural resources, protection of the environment, and prevention of pollution and environmental degradation. The First Schedule of the Act offers categories of projects that require an Environmental Impact Assessment. The Environmental Management Act provides for the sustainable management of natural resources, protection of the environment, and prevention of pollution and environmental degradation.
3.6.2.1 Waste dumps management
The Parks and Wildlife Act (Chapter 20: 14) 1996 Revised Edition, Part II of this Act outlines the purposes of the Parks and Wildlife Management Authority to preserve and protect the natural landscape and scenery therein. The Authority also preserves and protects wildlife and plants and the natural ecological stability of wildlife and plant communities therein for the public's enjoyment, education, and inspiration. In this respect, the Area Manager of National Parks will,
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whenever necessary, check if the project is conforming to legal requirements and specifications.
Issues of environmental protection were very peripheral before 2000. Mining companies had to contend with several pieces of legislation protecting certain environmental resources. The Parks and Wildlife Act (Chapter 20:14) of 1996 (Revised Edition) gives Parks and Wildlife the mandate to (a) preserve and protect the natural landscape and scenery therein, and (b) to preserve and protect wildlife and plants and the natural ecological stability of wildlife and plant communities if the mining operations are within Parks area. To this end, mining in National Parks is prohibited.
3.6.2.2 Reduction in contaminants
The Environmental Management Act (EMA) (20:27) was promulgated in 2002 after the repeal of the Natural Resources Act (Chapter 20:13), the Atmospheric Pollution Prevention Act (Chapter 20:03), the Hazardous Substances and Particles Act (Chapter 15:05), and the Noxious Weeds Act (Chapter 19:07) all govern the handling of contaminants in mining.
Part IX, Section 57, of the Environmental Management Act makes it an offence to discharge any toxic, noxious or obstructing matters or other pollutants into the aquatic environment. The proponent of any industrial undertaking is required to install an appropriate effluent treatment plant before they are discharged into the environment, under Part IX, Section 59, subsection (I) of the Act. Part IX, Section 96 makes it mandatory for persons engaged in operations that may affect the environment to produce environmental management plans. It is an offence, under Part IX Section 123, subsection (1a and 1b), for any person to permit or cause to be placed any invasive alien species or the seed of such in any watercourse or any road or land. The Atmospheric Pollution Prevention Act (Chapter 20:03) (Section 28) requires a miner who is situated in a dust control area or one who intends to close down a mine (so declared by the Minister of Health) to give 31 days’ notice to the Chief Officer of Health. In turn, this officer may serve a written notice on the miner requiring him to adopt measures to prevent dust originating from the mine. This will only have relevance if the area is declared a dust control zone.
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Section 269 of the Mines and Minerals Act guides the behaviour of mining companies towards soil restoration and waste dump practices. The section provides for all open surface workings to be filled in before abandoning a mining site. The section stipulates that the manner of the enclosure is prescribed by regulation and must be of a standard that a mining inspector approves.
Therefore, it can be construed to mean that the concern here appears to be solely that of ensuring the safety of persons or animals. As a result, the section seems not to extend the restoration of workings in any ecological sense, particularly the re-vegetation of the site to its original and unspoiled state. This brief summary of the Mines and Minerals Act (Chapter 21:05) shows that the Act is very powerful and currently overrides most if not all other pieces of legislation. This inherent power of the Act can create problems and loopholes regarding environmental management in mining areas.
BUSINESS ETHICS PRACTICES
Regarding corporate community interface, Flammer and Kacperczyk (2015) mention that legislation that permits a stakeholder orientation rather than a strict shareholder orientation is important in corporate social responsibility. In Zimbabwe, regulations and policies promote good relationships with and enhance the local communities’ economic capacities of which the mines are part. Zimbabwe passed legislation guiding local CSR in Zimbabwe's mineral resources sector to give a framework for structured support from mining companies to affected communities. The principal legislation is the Indigenisation and Economic Empowerment Act Chapter 14:33. This part of the legislation thrusts CSR outcomes such as the employment of indigenous Zimbabweans participating in economic activities, directing procurement of goods and services from local businesses, enterprise development, and equity management. Economic Empowerment law sought to, among other things, empower communities to benefit from mining operations being carried with their areas.
53 3.7.1 Promotion of local economy
According to Vintro and Commanjuncosa (20101), sourcing raw materials, labour, and other services are one of the practices that constitute good business ethics. There is legislation to guide these practices.
Part II section (3) subsections f and g (f) of the Indigenisation and Economic Act, 2007, says ‘----all Government departments, statutory bodies and local authorities and all companies shall
procure at least fifty per centum of their goods and services required to be procured in terms of the Procurement Act [Chapter 22:15] from businesses in which a controlling interest is held by indigenous Zimbabweans;
(g) where goods and services are procured in terms of the Procurement Act [Chapter 22:14] from businesses in which a controlling interest is not held by indigenous Zimbabweans, any subcontracting required to be done by the supplier shall be done to the prescribed extent in favour of businesses in which a controlling interest is held by indigenous Zimbabweans.’ (Government of Zimbabwe, 2010).
The Indigenisation and Economic Empowerment Act further requires a community share ownership trust for every rural district. The community share ownership trusts were launched mainly as a tool by which enterprises are utilising natural resources plough back to the communities they are working. Community Share Ownership Trusts have been launched since 2010 following the provisions of the indigenisation law requirements. The mining industry, together with the government, has taken a stakeholder view of CSR. The community share ownership scheme can be viewed as some structured corporate social responsibility. They are a mechanism for the mining sector that exploits mineral resources while causing permanent alteration of the landscape in some cases, environmental damage to plough back to the community. Section 14 of the Indigenisation and Economic Empowerment (General) Regulations Statutory Instrument 21 of 2010 states that the revenue realised from the community share ownership scheme will be used for community projects such as hospitals, schools, and irrigation schemes, among others to uplift the lives of communities (Government of Zimbabwe, 2010).
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While CSR is voluntary in principle in Zimbabwe, there are Acts of Parliament enacted to address the problems of poverty and underdevelopment in Zimbabwe. The government came up with the empowerment policy to enact the Indigenization and Economic Empowerment Act (Chapter 14:33) of 2007. This Act requires that all foreign-owned companies cede 51% of their equity to locals and remain 49%. This policy was seen as the best way to ensure that most Zimbabweans participate in the mainstream economy. The government sought to achieve the empowerment effort by enabling the communities to acquire equity in the businesses operating within their communities through CSTOS. These CSOTS were established through Section 14(b) of Statutory Instrument 21 of 2010. Every District with natural resources being exploited should have a Community Share Ownership Trust. The Statutory Instrument outlined the implementation structures of these trusts.
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According to SI 21 of 2010 of the IEE Act (General) Regulations, the definition of a community shall be residents of a Rural District Council established in terms of the Rural District Councils Act [Chapter 29:13]. The Community Share Ownership Trust Membership to range from 7 to 15 members including the listed;
Chief – (Chairperson) rotational where there is more than one chief in the district.
Other Chiefs in District.
District Head of the Ministry of Youth Development, Indigenization and Empowerment.
District Administrator.
Council Chairperson – (Vice Chairperson).
CEO of RDC Ex- Officio (Secretary).
Representative(s) of qualifying business(s) drawn from senior management level of the business.
Representative of women.
Representative of the youth.
Representative of the disabled.
A lawyer.
An accountant.
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Any other person co-opted by the trust for their expertise and/or special skills from time to time.
The mandate of the Trust, according to the Act, was to prioritise projects and allocate funds for the implementation of the project. The Trust was to Review progress, problems and challenges, and the Trust was to identify projects/programs for implementation. These should be in harmony with the requirements of the local planning authority to protect all financial and other assets of the Trust.
There are, however, various pieces of legislation that affect the Indigenisation program. These include the Public Finance Management Act, Chapter 22:19 and the Finance Act of 2018. The Finance Act of 2018 revised the ownership structure in the mining sector, and 51% of the companies did not comply. This resulted in the shutting down of the Indigenisation and Economic Empowerment Board, spearheading the operationalisation of the Indigenisation and Economic Empowerment Act.
However, companies' non-compliance with these key pieces of the legislature is not an option because there are provisions in the Indigenisation and Economic Empowerment Act, which spell consequences for non-compliance. Part II (5) (2) of The Indigenisation and Economic Empowerment Act (2007) says;
‘Subject to this section and section 20, the Minister may issue a written order to the licensing authority of any non-compliant business ordering that the licensing authority concerned declined to renew the licence, registration or other authority to operate of the business concerned, or, where the licence, registration or other authority concerned is granted for an indefinite term, ordering that the licence, registration or other authority concerned be terminated----‘
Also, the country's President has responsibilities reserved in granting or withdrawing certain mining rights under certain circumstances.
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HUMAN CAPITAL MANAGEMENT REGULATIONS
There are laws and regulations for promoting and maintaining open and constructive dialogue and good working relationships between employers and employees in Zimbabwe. The Labour Act [Chapter 28:01] is the principal Act governing labour in the mining sector, and the Labour Act covers all mineworkers.