COMMENT - He forgot how to mention how much money he was paid not to tax the mines.
State reveals reason for the abolition of windfall tax
Saturday, May 8, 2010, 9:09
A Government official has revealed the underlying reason behind Government’s decision to scrap off the windfall tax in the mining sector.
Deputy Minister in the ministry of Mines, Boniface Nkata says if Government had continued to charge windfall tax on excess profits in the mining sector amid the Global financial crisis the affairs of the country would have become ungovernable.
He said the pulling out of most foreign mining firms from the mines created a lot of job losses which created tension in the country which, he stressed, was almost going to lead to a vote of no confidence by the Zambians in the incumbent Government.
In an overheard conversation with fellow government official, Mr Nkhata explained that government had predicted a situation where people would have been up against government because of the loss of jobs and thereby advantaging the opposition over the ruling party.
[So non-taxation of the mines, in effect Zambian poverty, comes down to political expediency? - MrK]
He said that the opposition parties had also contributed to inciting people to rise against Government.
He said that Government feared a situation where an early election would be called because of failure by Government to Govern the Country through its strategic revenue earner the mines.
Mr Nkhata said that after the abolition of the windfall tax, Government has been able to restore jobs that were lost following the closure of most mines.
He added that the issue of windfall tax raises so much dust and disturbances in the Governance of the country and that Government would not consider re-introducing it.
QFM
Labels: BONIFACE NKHATA, CORRUPTION, WINDFALL TAX
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Luanshya Mine to shed off contractors
Written by Zumani Katasefa in Luanshya
Wednesday, August 26, 2009 5:10:10 PM
CHINA Non-Ferrous Mining Corporation (CNFC), the new owner of the once troubled Luanshya Mine, has indicated that some contractors will not be given jobs at the mine once it commences production.
Speaking when deputy mines minister Boniface Nkhata visited the mine on Monday, mine underground manager Joseph Chikoti said the idea to do away with some contractors was aimed at maintaining mining standards at the firm.
“We are going to do away with some contractors to ensure that safety and mining standards are kept, we are also going to keep our costs of doing business low,” he said.
Chikoti said some contractors did not follow the mining standards, saying this was very dangerous in mining.
He said the new investor had directly employed some of the workers who were previously working under the contractors.
Chikoti also disclosed that the mine would be able to produce about 5,000 tonnes of ore and 1,500 tonnes of waste per day once production begins.
“By October, we would have done full-fledged development of the mine. We want to maintain steady progress of development, it is critical that we do that,” he said.
Chikoti said the investor was, at the moment, looking at rehabilitating the mine and procuring new machinery as most of the machines left by the previous investors were outdated.
And concentrator manager Venus Kasito said the filtration system at the mine was outdated and without ventilation system.
Kasito also said the five crushers left by the former investor were equally in a bad state.
And Nkatha hoped that the investorís plans about the mine would be fulfilled once it settled down.
Nkatha urged the people of Luanshya to work together with the new investor in Luanshya Mine.
“As government, we are not happy to see people languishing, we want to try our best and see that our people are happy,” said Nkhata.
CNMC has recalled 850 employees who worked under Luanshya Copper Mine (LCM) and directly recruited 200 workers previously employed by a contractor, Armco Prosec.
It is anticipated that 4,000 jobs would be created in Luanshya once production commences at both Baluba and Muliashi mines.
Labels: BONIFACE NKHATA, JOSEPH CHIKOTI, LUANSHYA COPPER MINES
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Govt won't bow to traditional leaders over mining -Nkhata
By Lambwe Kachali
Friday September 07, 2007 [04:00]
GOVERNMENT will not bow to traditional leaders over mining issues, mines deputy minister for small-scale Boniface Nkhata has said. And chief Shakumbila of Mumbwa district has accused the Ministry of Mines of not being transparent in the way mining prospecting licences were being awarded.
In an interview after meeting chiefs from Mumbwa who demanded that Luiri Gold Mines Limited, which is operating in Mumbwa district, releases 50 per cent of the land it is occupying to other interested investors, Nkhata said his ministry had put a monitoring period which should be observed.
He also said the ministry had developed a 'castral system' which he said was a computerised system that helped the ministry to monitor the improvement of land for mining development by investors.
"I think there is a big misunderstanding between the chiefs and Luiri Gold Mines. The period we have put in place now is from 1st July to 30th December, 2007. During this period, we will not allow any investor whether foreign or Zambian to apply for a mining licence. And this is a period when most investors are releasing fifty per cent of the prospected land to government," Nkhata said.
He said it would be against the mining Act to force Luiri Gold Mines to release part of the occupied land to the government before the expiry of the period given to them.
"Come next year January, everyone will be informed to apply for mining licences. To us it will be first come, first serve," said Nkhata.
But chief Shakumbila, who was in the company of chief Moono and a representative of chief Mumba said the ministry had been favouring foreign investors.
"Even when giving licences, most Zambians who want to invest in Mumbwa are denied to be given," he said.
Chief Shakumbila said Luiri Gold Mines was occupying 2,400 square kilometres of land.
"They are not in Mumbwa for copper. They are there for gold. This is why we want government to act," he said.
Luiri Gold Mines country representative Harry Sibbenga expressed surprise at the behaviour of the chiefs. Sibbenga said the aim of their company was to develop the district and not to cause confusion.
Labels: BONIFACE NKHATA, CHIEFS, MINING
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