Maravi

(TIMES) State ponders forming local development fund

State ponders forming local development fund
By Business Reporter

THE Government is considering setting up a local development area fund under which mining firms will be compelled to channel a percentage of their profits towards local area development activities. Mines and Minerals Development Minister, Kalombo Mwansa, said the Government would create the fund to ensure the upgrading of the areas where the mines were operating from.

Speaking in an interview in Lusaka, Dr Mwansa said a certain percentage of profits, especially during boom periods, should go towards the Fund once created.

“There is need for development in areas where the mines are operating from, especially in areas including education, health and rehabilitation of roads,” the minister said.

Dr Mwansa said the mining sector played a significant role in the economy because resources from the sector were channelled towards other key sectors that fostered development.

“Industrialisation begins from the mining sector, hence as Government we will ensure that resources from the mines are effectively used to develop the industrial base in the country,” he said.

The minister disclosed, however, that between January and March this year, various mining houses in Zambia had contributed about K10.6 billion to different communities through their social responsibility programmes.

Dr Mwansa said earlier this year, he had requested all mining firms to submit a quarterly report on the social responsibility efforts. Firms started submitting reports for the next quarter and that a detailed report would be compiled by the ministry this week.

Labels: MINING, MINING CONTRACTS

posted by MrK @ 3:49 AM