Saturday, 4 November 2017

Mining fortifies Policy with Strategic and Implementation Plans





      By Rorisang David Mahlo

The government of Lesotho through the Ministry of Mining has decided to fortify the Mining Policy with strategic and Implementation plans. The development of these strategic tools has brought about a thirst to see the policy addressing the Mining Policy issues. So, the Ministry of Mining has embarked on a campaign to develop the Strategic and Implementation Plans as a mode of operationalising the recently launched Minerals and Mining Policy of 2015. This campaign started at Maseru Avani on 23-24 of October 2017 with a group of Mining Stakeholders. 
  
This campaign is aimed at consolidating the views and opening up the platform for the stakeholders to build up an inclusive and stakeholder concerted and informed plans. The objective is to device plans that will directly address all ten (10) thematic areas and numerous strategies reflected under each thematic area in the Mining Policy. Moreover the Ministry is hoping to develop plans that are going be user-friendly to both players and regulators without any prejudice. 
      
In his opening remarks, the Minister of Mining, Hon. Keketso Sello emphasised that amongst many important areas, this implementation plan should cover a revised legal and regulatory framework for the policy to enable institutional reforms, capacity building, monitoring and evaluation plan. “In order for this policy to be successfully implemented there should be a comprehensive implementation plan and strategies in the areas of capacity development of the ministry in issues related to human resources and institutional reforms,” said Hon. Sello.

Hon. Sello added that as we all know that minerals are non-renewable resources, there has to be a clear strategy on how we can use the revenue accruing from the mining sector to strengthen other sustainable sectors that have potential to reduce unemployment and accelerate economic growth.

Most importantly he also reminded the stakeholders that the National Strategic Development Plan I (NSDPI) has identified mining as one of the growth accelerators and the industry is poised to contribute an estimated growth of more than 10% to the Gross Domestic Products (GDP) in the future.

In order to achieve the Ministerial mandate Hon. Sello showed that, as a country there is  a need to diversify into exploration of other minerals using modern and more appropriate technologies and such information being availed so that investment can grow within the sector. “Most significantly we need to create conducive environment for mining including downstream activities,” said Hon. Sello.
 
He went further to highlight what the NSDP Chapter on Mining provides for the sector as thus: “The NSDP Chapter on Mining caters for a number of strategies for the development of the mining sector as it advocates for augmentation for mineral resource intelligence systems and access to information on natural resources; improvement of policy and legal frameworks to address emerging issues and adoption of the best practices; increase value addition and improve marketing systems for mined products; development of the necessary skills base; and enhance investment promotion and local participation/ownership,”  Minister Sello sighed with the optimism to achieve.

On the other side and on behalf of the stakeholders, the Lesotho Chamber of Mines representative Mr. Mohale Ralikariki showed that the “exploitation of the country’s mineral resources requires foreign direct investment (FDI) and therefore, Mining policy and its Strategic and Implementation plans must be shaped, in manner that will assist in attracting FDI to create growth, which in turn will generate jobs, increase tax inflows, royalties, dividends,” reported Mr. Ralikariki.

Adding that both regulators and industry players must be cognisant of the fact that we have to compete globally for FDI and “currently our ranking by the World Bank in their annual ‘Doing Business Report’ is 100/190 (ranking was 128/189 in 2015),” said Ralikariki.

Furthermore Mr. Ralikariki cited ‘Fraser Institute, 2017’ where it is laying down the twelve (12) critical factors that international investors consider before undertaking any  business  activity in any country. Among them were the following and in no particular order of importance:
  
The regulatory framework – with certainty, minimal duplications/departmental overlap, stability of licence renewals;
Legal system – that is fair, transparent, non-corrupt, and efficient;
Infrastructure –such as roads, power and water;
Political stability – that has continuity of political institutions and policies;
Labour resources – reference to the availability of labour and skills, labour peace, access to foreign workers where skills are unavailable locally.

In a nutshell Mr. Ralikarik presented to the workshop that, if we currently do not have these phenomena listed above, he suggests that they must be the stakeholders’ priorities and be the first to be done in order to attract even more investors for future.

As a word of advice to both the Ministry and Stakeholders Mr. Ralikariki recommended that both parties must take steps to make Lesotho the mostly preferred FDI destination, and do away with anything that will dissuade our investors.

Lastly, in an interview with the Media, the Principal Secretary of Mining Mr. Soaile Mochaba told the media that this is just the beginning of the campaign. The Ministry is yet to host even more and regular kinds of similar workshops of stakeholders throughout the country so as to ensure its inclusiveness. 
 
In general, the Ministry of Mining, decided to develop a Minerals and Mining Policy, the very first policy for the sector which was approved by Cabinet in 2015, and officially launched in September, 2016. The Ministry solicited technical assistance from the United Nations Economic Commission for Africa (UNECA) and the United Nations Development Programme (UNDP) towards developing this policy.  Prior to the development of this policy there was no such policy document to give a strategic direction and guide the implementation of the Government’s goals in the minerals and mining sector.

This policy was benchmarked on the Africa Mining Vision (AMV) which was adopted by Heads of State of the African Union in February, 2009. To this end, we requested the United Nations Economic Commission for Africa (UNECA) and the United Nations Development Programme (UNDP) to provide the Ministry with technical assistance towards developing the Lesotho Minerals and Mining Policy founded on the AMV principles but which will surely encapsulate Lesotho’s priorities as outlined in National Policies and Strategies.

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