Maravi

Government suspends metal export permits

Government suspends metal export permits
By Chiwoyu Sinyangwe
Thu 06 Oct. 2011, 12:10 CAT

THE government has temporarily suspended metal export permits in a move meant to introduce measures to effectively monitor the exports, says mines permanent secretary Dr Godwin Beene.

Dr Beene in an interview said the move was not going to hurt the mining industry as it was just aimed at allowing the government to keep a tab on metal exports out of the country's vast mining sector.

President Michael Sata has been concerned - analysts say with good reason - about copper exporters misreporting the amount of ore leaving the country, and last week said that henceforth all export payments would have to be routed via Bank of Zambia.

"The mining companies should not panic as this is just a reaction to what the President Michael Sata directed," Dr Beene said.

"The modalities for the exports are already in place and this is just a temporal ban which would be lifted next week. So there is no need to panic because we can't take decisions that would hurt the industry."

The new procedures are to be in place by October 16, according to the document addressed to the chief executives of miners operating in the country, which include Canada's First Quantum Minerals, London-listed Vedanta Resources , Glencore International AG and Metorex of South Africa.

Separately, Reuters reported that much of the copper exports are destined for Switzerland but little of them show up in Swiss customs data, raising questions about transparency.

Labels: COPPER, EXPORTS, GODWIN BEENE, MICHAEL SATA

posted by MrK @ 3:46 PM