Maravi

NUCIW opposes proposal to amend mines, minerals Act

NUCIW opposes proposal to amend mines, minerals Act
Written by Florence Bupe
Sunday, March 22, 2009 4:42:00 AM

THE National Union of Commercial and Industrial Workers (NUCIW) has criticised the Ministry of Mines’ proposal to amend the mines and minerals Act of 2008. But mines minister Maxwell Mwale said the Act has to be amended to accommodate foreign investors in order to boost the mining industry.

NUCIW president Seth Paradza said the amendment of the Act would work against the empowerment of Zambians in the mining industry.

“If the amendment of the Act is allowed to go through, then it will defeat the whole purpose of empowering Zambians in the mining sector. We have a number of our members, for instance, who own shares in the Lafarge quarrying industry because of the empowerment facilitated by the Act which they (government) are now seeking to amend,” he said.

Paradza charged that the amendment of the Act to allow foreign investors to actively participate in the mining of industrial minerals was retrogressive to efforts to empower Zambian investors.

But Mwale said it was only prudent to amend the Act to boost operations in the industrial minerals sector.

“Under the mines and minerals Act of 2008, industrial minerals were left to be mined by Zambians. This was done with a view to encourage and empower Zambians,” Mwale said.

“However, the Act has to be amended to accommodate foreign investors. When we drew up the Act, we did not envisage there would be interest by foreign investors to mine, for example, sand.”

Mwale said it was necessary to make exceptions for operations such as the mining of cement as there was massive capital output.

Last week, the Ministry of Mines presented a proposal to Parliament to have the mines and minerals Act of 2008 amended.

And the parliamentary committee on Economics on Wednesday described as highly suspicious Zambia Development Agency (ZDA)’s support to have section seven of the mines and minerals Act of 2008 amended. This was after ZDA director general Andrew Chipwende, who appeared before the committee, said maintaining the clause would restrict foreign investors who wished to undertake major projects in the production of cement and phosphate fertiliser in Zambia.

Section seven of the mines and minerals Act of 2008 which the Ministry of Mines has proposed for amendment provides that a mining right for industrial minerals shall only be granted to a person who is a citizen of Zambia or a citizen-owned company. Industrial minerals include, among others, limestone and gypsum used in the production of cement and quicklime as well as phosphates used in the production of phosphate fertilisers.

Labels: CORRUPTION, FDI, MAXWELL MWALE, MINES AND MINERALS ACT, NEOLIBERALISM, NUCIW, SETH PARADZA

posted by MrK @ 4:41 AM