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(STICKY) Government must push for revision of mining agreements - consultant

Government must push for revision of mining agreements - consultant
By Misheck Wangwe in Kitwe
Thu 21 June 2012, 13:24 CAT

THE PF government must push for the revision of mining agreements to secure greater benefits from the sector, says an international labour consultant.

In an interview yesterday, Andy Stroll said although the government's move to tighten regulations on taxation of mining companies and revenue collection was a milestone to maximising profit for Zambians, the major problem was with the initial mining agreements that were signed at privatisation.

He said although the government had indicated that it would not nationalise the mines and other industries currently in private and foreign hands, it would be important to ensure that it creates a win-win situation between Zambians and investors.

Stroll said the minerals mined from Zambia had been used to develop other countries but successive government had failed to achieve economic development on behalf of the majority poor.

[I would say neglected, not 'failed'. Failed implies that they tried and it didn't work - they didn't try. - MrK]

He said programmes initiated by transnational mining companies under their corporate social responsibility could not be considered as real investment for the nation because they were not adequate to meet the needs of Zambians.

"When it is all said and done, what will Zambia look like 20, 30 or a 100 years from now? Do we insist that we continue to be only consumers and employees and not employers and owners? Is it enough to just collect mineral royalties and other taxes with no actual growth for our individual citizens? What is the goal? These are questions national leaders must answer and take steps to correct the situation because Zambians deserve to see development. This country is endowed with mineral resources so the people don't deserve to be living in poverty," Stroll said.

He said it would be illogical for national leaders to continue eulogising developed countries that had invested in the mining sector and making their economies stronger when Zambia had continued struggling with chronic poverty, disease and various social ills.

Stroll said initiatives that the government had put up were commendable but Zambians expect the government to move a step further to protect the interests of citizens even if the mines were in private hands.

"It is not meaningless that Zambia's credit rating is better than that of Ireland and there is a recorded five per cent average growth rate over the last six years. There is hope that everyone now has a stake on the dinner plate and every child has a desk at school, it simply means the country is moving in the right direction and we can now attract investments that can grow our economies and broaden the tax base which in turn can be used to deliver social services," he said.

Labels: DEVELOPMENT AGREEMENTS, PF

posted by MrK @ 4:31 PM