(STICKY) Mines to provide detailed info
Mines to provide detailed infoBy Kabanda Chulu in Lusaka and Edwin Mbulo in Livingstone
Mon 18 June 2012, 13:22 CAT
GOVERNMENT has with immediate effect put in place regulations to compel mining companies to provide information on tonnage, type and grade of ore mined including operating cost sheet and production figures aimed at increasing revenue to the treasury.
According to Statutory Instrument No. 34 of 2012, mining companies would be required to submit reports on the recovery percentages and efficiency of all mining and metallurgical processes and balance sheet showing the disposition of all metal and mineral products depleted from the ore reserves.
Other requirements for mining companies include providing a statement of work carried out on capital products and expenditure and availing quantities and grade of end products produced, quantities sold and average price of selling prices.
Announcing the development last Friday, mines minister Christopher Yaluma said mining was Zambia's key economic sector.
"Its performance in terms of mineral production has been improving over the years but this improvement has not been matched with corresponding increase in revenue to government, so we have reviewed legislation in order to independently monitor the production and export of minerals and failure to comply will result in revocation of licences and other punitive measures," he said.
Meanwhile, Zambia Extractive Industry Transparency Initiative head of secretariat Siforiano Banda said the main cause of the un-reconciled discrepancies in the mining sector was due to lack of details of the payments by both companies and government.
According to the ZEITI 2009 reconciliation report presented during capacity building workshop for civil society and media organisation at Protea Hotel, documentation indicates that mines contributed K2.6 trillion while the government received a total of K2.5 trillion from the mines in 2009.
"There is need to follow up and minimise the discrepancies in the extractive sector and all stakeholders to cooperate in order to promote transparency in the extractive industry in order for the country to benefit from natural resources. The main causes of the un-reconciled discrepancies were due to lack of details of the payments by both companies and government," Banda said.
He said there was need to create an enabling environment for doing business in the country's mining sector and strike a balance that would benefit both investors and the government.
Banda said out of the K2.5 trillion received by the government, there was a net discrepancy of K31.4 billion, representing 1.2 per cent of government receipts
And council member Talent Ng'andwe said ZEITI promotes governance and sought to reduce the risk of diversion or misappropriation of funds from the country's extractive industry.
And according to the report, Konkola Copper Mines was the largest contributor in the mining sector while Zambia Revenue Authority was the largest contributor to the treasury in the country through the payment of Pay as You Earn taxes.
The report further indicates that in terms of copper production in 2009, Kansashi Mining Plc was the highest producer of copper ore at 244,979 tonnes per annum where as Grizzly Mine had the highest emerald production with 193,179,800 carats per annum.
Zambia decided to join the EITI because of the perceived lack of transparency after the privatisation of the mining sector in 2009.
posted by MrK @ 3:39 PM
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