(LUSAKATIMES, STEEL GURU) Zambia miners ask government to facilitate tax policy

Monday, December 20, 2010

(LUSAKATIMES, STEEL GURU) Zambia miners ask government to facilitate tax policy

COMMENT - 1) Every time the mines threaten to leave, they pay a $30 million fine; 2) when they leave, all their assets revert to state ownership within 30 days. Sounds good to me.

Zambia miners ask government to facilitate tax policy
Monday, December 20, 2010, 13:37

The Zambia chamber of mines has asked government to facilitate predictability of the tax policy regulations to enable the industry contribute positively to the growth of the economy.

There have been calls from various players for the government to revise the tax regime in the industry to enable the country benefit from the mines, Zambia’s crown jewel, since copper prices have soared high above USD 8,000 per tonne. Chamber of mines in Zambia president Mr Nathan Chishimba noted that uncertainty in the policy formulation was creating anxiety among investors.

Zambians should focus on the future and its long term benefits that are accruable from the industry. The mining industry requires collaborative effort and networking among sector players to further spur sustainable growth for the country. For the industry to sustain growth and contribute to national development positively, sector players should ensure transparency and efficiency in the way they ran affairs in the industry.

Mr Chishimba speaking during the 2010 International Mining Conference and Exhibition hosted by Konkola Copper Mines in Chingola noted that said since the year 2000, more than USD 5 billion investment had been made to the industry, an indication that the sector was growing.

He said certainty of policies in the industry was vital, now than ever before as the players were focusing on one objective of steering the industry to higher heights. The chamber, he said, formed the column which could spearhead the common vision of resolving the problems the industry was facing rather than existing just to criticize the partners.

The investment in the mining sector since 2000 had resulted in tripled copper production from 250,000 tonnes to more than 700,000 this year and attributed the growth to the contributions from various mines.

The chamber of mines envisions that production, if enhanced by good and reliable policies, could help increase copper production to one million tonnes target by the year 2012. And government has asked mining companies to help sustain growth in the industry and job creation in the aftermath of the rebound in the price of the mineral, copper, especially now that the financial crisis was over.

Mines minister Mr Maxwell Mwale said it was government’s desire to support companies that remain vibrant and steadfast even in an event that another shock occurred in the industry. He said that “I note that Zambia’s largest mining house, KCM, has led in many areas. The most notable is the expansion program and a commitment to make Zambia a global giant in copper production.”
The mining industry would continue to be the main driver of the Zambian economy. The industry was the major earner of foreign exchange and highest contributor to the growth domestic product of about 11% in 2009.

He said that “As Government, we note that along these investments has come a massive transfer of mining and construction technology into Zambia. This will help in the improvement of efficiency. We are convinced that with more mining firms following KCM, our industry should be able to make progress towards attaining the 20% contribution to GDP by 2015.”
[Steel Guru]

Labels: CHAMBER OF MINES, NATHAN CHISHIMBA, WINDFALL TAX