Its report states that the mining sector saw 30% growth in the value of exports from 2000-09, with a 150% jump in exports in 2010 before a decline to 30% in 2012.

The World Bank attributed the 2012 fall to royalties being substantially increased, with various fees associated with exploration and exploitation ranked among the highest in the world.

The increase in fees had the potential to sterilise exploration in Zimbabwe, said the WB.

“While most of these fees are bearable for an operating mine, they are not for exploration companies, where no income is forthcoming. These fees scare off what little investment in exploration there is,” the WB said.

Royalties for gold have increased from 4.5% to 7%, diamonds from 10% to 15%, and platinum group metals increased doubled from 5% to 10%. Diamond miners pay $US1 million application fees, platinum group metals $500,000 registration and $2.5 million application fees, while coal, with 1% royalties, pays $500,000 application and $500,000 registration fees

Ground rental has increased from nothing to $3000 per hectare for diamonds, $1000 per hectare for PGMs and the same for coal mining.

A 15% levy has been introduced on exports of unbeneficiated PGMs as the Zimbabwe government tries to encourage establishment of a precious metals refinery.

This is designed to optimise returns from the export of minerals.

The World Bank states that the lack of large scale exploration activities suggests that unknown mineral resources will continue to go unexplored and the true potential of the country will stay hidden.

It added that the past three decades had witnessed evolution in exploration technology with power geophysical and geochemical tools, technology that could only be accessible after allowing international investors.

Absence of sophisticated investors has stunted new exploration. No exploration licenses have been issued since 2005 despite a total of 319 applications.