Maravi

EAZ calls for adequate interest in mining policy review process

EAZ calls for adequate interest in mining policy review process
By Joan Chirwa
Tuesday August 07, 2007 [04:00]

ECONOMICS Asso-ciation of Zambia (EAZ) secretary Chibamba Kanyama has called for adequate participation of various stakeholders in the adoption of the new mining policy currently under discussion. Commenting on the draft mining policy that seeks to replace the 1995 piece of legislation, Kanyama said there were a number of interested parties in the operations of the mining industry, hence the need for more participation by all key stakeholders in the review process.

“This process should incorporate all key stakeholders. We have got various registered institutions that represent various groups. We have got the business organisations such as the EAZ, civil society groups and the farmers union,” Kanyama said. “There are so many interested parties including civil society groups who represent a wider spectrum of the Zambian populace. The other important thing to note is to avoid making any commitment especially when we know the consequences such commitments will have on our future generations.”

The government, through the Ministry of Mines and Minerals Development, has come up with a draft policy for the sector that proposes a number of changes in the operations of the mining industry.

According to the draft mining policy, which seeks to replace the one of 1995 that was anchored on attracting investors into the mines as the country privatised the industry; any fiscal provisions in any agreement will be subject to public scrutiny and be gazetted before taking effect.

The draft policy states that all development agreements signed with investors would be subjected to public scrutiny and must be ratified by the National Assembly before taking effect.

Other proposed changes in the draft policy are that the country shall not offer tax holidays in the mining sector but instead develop a friendly tax regime for mining investment.

And Kanyama advised the government to be consistent in the implementation of new policies, taking into account long-term national documents such as the Vision 2030.

“We don’t want posterity to judge us harshly. It is a good thing to have a new mining policy although it has come quite late when numerous investments have already taken place,” Kanyama said.

“The question now is what we are going to do with the development agreements signed under the 1995 policy. While we are discussing the new policy, it is important now that all the existing development agreements are declared null and void and these must be re-negotiated in line with the new policy.”

Under the current policy, the government has the prerogative of negotiating development agreements with investors and giving them any incentives deemed necessary to enhance the investment's viability without seeking Parliamentary approval.

Other proposals include facilitation of indigenous Zambians' participation in mining ventures, which will be guided by the recently-enacted citizen’s economic empowerment Act.

Labels: CEE, CHIBAMBA KANYAMA, DEVELOPMENT AGREEMENTS, EAZ

posted by MrK @ 4:42 AM