ZCCM-IH to confer with govt over transfer of copper earnings

ZCCM-IH to confer with govt over transfer of copper earnings
By Kingsley Kaswende
Saturday February 17, 2007 [02:00]

Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) is negotiating with the government to come up with a legally-binding mechanism to transfer copper earnings to the government treasury. ZCCM-IH general manager Joseph Chikolwa said “hundreds of millions of US dollars” were due to the government treasury as copper earnings through price participation but that legal issues must first be taken care of before that money goes straight to the treasury.
He did not disclose the full amount.

He said the legal issues to be taken care of involved the interests of other shareholders in ZCCM-IH, which has a trio listing on capital markets. “There is some money due to the government but the trick is to find a way of assigning that money without impinging on the interests of shareholders,” Chikolwa said.

He was responding to World Bank country manager Dr Ohene Nyanin who said despite price participation being potentially a key part of the government’s fiscal regime, the funds were not being collected by the Zambia Revenue Authority. “Why is it that the (official) collectors of this revenue are not the ones collecting the revenue that is part of the fiscal regime?” Dr Nyanin asked. “Why does ZCCM-IH become the sole decider of this income?”

ZCCM-IH has the mandate to look after the assets of the defunct mining conglomerate, ZCCM and holds shares in major copper mines.