Small-scale miners propose waiver on equipment imports

Small-scale miners propose waiver on equipment imports
By Gift Chanda
Tue 08 Feb. 2011, 04:01 CAT

SMALL-SCALE miners have proposed waivers on imported mining equipment in a bid to accelerate production in the sector. Zambia Women in Mining chairperson Mary Lubemba said there is need to introduce incentives that would assist the growth of the small-scale mining sector in the country.

Lubemba, in an interview, said production in the sector has remained low owing to high costs of importing mining equipment.

“We have continued to use the traditional ways of mining for a long time now, yet this is a sector that has great potential to increase the country's revenue collection...let’s introduce incentives that will see some of the minerals mined at small-scale level such as gemstones compete with copper,” she said.

Lubemba proposed that the government should zero-rate small-scale mining equipment for Value Added Tax purposes to encourage local investments in mining.

She said the government had played a key role in marketing the mining sector at international level but import costs had continued to choke the industry.

“The gemstone industry has been well exposed to international markets, we have received huge supply orders in the past but the problem has been that the demand does not meet the supply levels due to the poor extractive yields that have resulted from the lack of use of modernised machinery,” she said.

Lubemba disclosed that her association plans to manufacturers of mining equipment in India and Thailand to supply mining machinery at subsidized rates.

“We have realised that the mining can never be profitable without the use of excavators and bulldozers. All these years we have been stuck to the use of pick and shovel, but next month we will lobby businessmen in Thailand and India to supply our members with equipment at reduced prices,” said Lubemba.