(DAILY MAIL) ZCCM-IH not positing profits

ZCCM-IH not positing profits
By KALONDE NYATI

THE ZCCM-Investment Holding (IH) has not posted profits or given dividends since its inception over 10 years ago and Government will re-brand the organisation to make it operate profitably and promote local participation in the ownership and management of mining assets.

Mines and Minerals Development Minister Wilbur Simuusa said in an interview that Zambia has for along time not yielded benefits from the mining sector due to the ineffectiveness of ZCCM-IH.

“ZCCM-IH is currently irrelevant and obscure…it is supposed to be like the watchdog for Zambians because it was set up to hold investments in the mines for Zambians,” he said.

He said ZCCM-IH is an important unit which if properly managed, can help the country realise huge benefits from the mining resources.

Mr Simuusa said there is need for the country to have increased ownership in the mines and ZCCM-IH is an engine which can facilitate the process.

He said Government will also engage mining firms on possibilities to list on the Lusaka Stock Exchange (LuSE) to enable Zambians own shares.

“We will get mining firms to float shares on LuSE to give locals the chance to own shares in the mines and benefit from the country’s mineral resources,” he said
Mr Simuusa said the mining sector needs to be fully reviewed if it is to contribute to economic development.

He cited the current tax regime as one of the areas that need to be revisited.
Mr Simuusa said the tax system is complicated and is not fully understood by stakeholders such as the Zambia Revenue Authority which has resulted in failure to collect adequate taxes from the sector.

“We have not collected adequate taxes in the past because ZRA has no capacity to collect the taxes due to the complicated tax regime,” he said

Mr Simuusa said there is need for a simplified tax regime which will benefit both the country and the mining firms.

“We want to look into the whole tax regime and come up with a system which will be a win-win for all stakeholders,” he said.

And on possibilities of re-introducing the ‘controversial’ windfall, Mr Simuusa said Government will decide on whether to re-introduce it after reviewing the mining sector.

“Government will look into the whole process and should it be necessary to bring windfall tax back, we will re-introduce it, though it may take a different form,”
He said Government will engage the mining sector in the whole process.