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(DAILY MAIL) New mining tax regime in line with international standards – IMF

New mining tax regime in line with international standards – IMF
By CHARLES MUSONDA

INTERNATIONAL Monetary Fund (IMF) top executives have said Zambia’s new mining tax regime is in line with international standards. IMF alternate executive director, Miranda Xafa, who was leading a team of directors on a study of the economic performance in Zambia, said the new tax changes were in order. “Before the government introduced changes in the mine taxes, Zambia was the lowest taxing country,” Ms Xafa said.

She said this in an interview shortly after members of the IMF board toured Albidon Zambia’s Munali Nickel Mine in Mazabuka on Monday. She said the Zambian government must ensure mines continued to be profitable and that the new taxes should not constrain investment in the sector. She said this was a specific area which the government must focus on when implementing the new taxes.

Ms Xafa said investment in the Munali Nickel Mine indicated that Zambia’s economy was transforming rapidly. She said the Zambian government must address the power deficit to ensure continue productivity in the mining and manufacturing sectors. “There is need to provide electricity not only for manufacturing industries but for households as well,” she said.

Albidon Zambia general manager for corporate affairs, Sixtus Mulenga, said Government’s fiscal and economic policies had enabled investment in the Munali Nickel Mine. Dr Mulenga paid tribute to the IMF for helping Government to create an enabling environment for economic development.

He said Albidon was ahead of schedule in developing the Munali Nickel Mine, which was scheduled to open mid this year. “Our achievements are above normal, and this is because of the technology that we have put in place. This mine will be the first in Zambia to use remote control vehicles to avoid accidents,” Dr Mulenga said.

Albidon was keen to meet the tight schedules set for opening the Munali mine, which he described as the fastest developing mine in the country.

Dr Mulenga said the company had employed over 1,000 people, primarily contractors, and 200 permanent workers, 80 per cent of whom were Zambians. He said the mine had few expatriates but Zambians would run it once production started. Dr Mulenga said the mine would be exporting nickel concentrates to its off-take partner, Jin Chuan of China, because there was no nickel smelter in Zambia.

“Developing a nickel smelter is one of the most expensive ventures in mining. It can cost you (between) US$100 million to US$300 million to develop a copper smelter, but it can cost you four to five times more to develop a nickel smelter,” he said.

Albidon would not face any power difficulties because it was constructing its own transmission line from Kafue Gorge power station. He added that floods had affected surface works but not underground mine development.

Labels: ALBIDON, IMF, MIRANDA XAFA

posted by MrK @ 7:26 PM