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Chimambo fears Zambia may lose out on minerals

Chimambo fears Zambia may lose out on minerals
By Ndinawe Simpelwe
Mon 04 July 2011, 19:30 CAT

ZAMBIA would have been in less debt if it had better policies on minerals, says the Zambia Climate Change Network.

ZCCN chairperson Robert Chimambo said this was the right time to create good policies that would ensure enough revenue from the country’s minerals when copper prices were high on the international market.

He, however, regretted that foreign investors were controlling the government at the expense of the Zambian people.

Chimambo said minerals were a diminishing asset that would become exhausted at some point.

“What government should know is that this copper will one day finish.
This is just the right time to put up good policies that will benefit the country.

Once our copper is finished, these investors that our government is supporting will leave the country and we will have nothing,” Chimambo said.

“These minerals are our national cake which each and every Zambian should have a share. What will our leaders say when all the copper is finished and yet the country has nothing to show for it?”

Chimambo said it was unfortunate that the government had decided to ignore the numerous calls from various stakeholders on the need to introduce better taxing systems on the mining companies.

He said it was clear that the current taxing system was not bringing the desired benefits to the country.

“What is hurting is that our leaders, when they are confronted, they are quick to side with what they are told by the foreign investors,” he said.
Chimambo said the mining companies had done a lot of damage to the land which would never be reversed.

He also said a number of families had been displaced because of mining activities without proper compensation.

“The copper prices are doing very fine on the international market.
This is the time for clever leaders to make a lot of money for the country. We will never have a better opportunity to make money out of the mines than this time. What is the government waiting for?” asked Chimambo.

Government has consistently refused to reintroduce the windfall tax despite numerous calls from stakeholders.

Finance minister Dr Situmbeko Musokotwane last Wednesday announced that First Quantum Minerals would pay US$224 million in tax arrears to the Treasury.
This was in the wake of a dispute that arose between the mine and the government over the decision to raise taxes in 2008.

Labels: MINING

posted by MrK @ 3:32 AM