Windfall tax will be revisited - Simuusa
By Chibaula Silwamba
Sat 01 Oct. 2011, 10:10 CAT
THE windfall tax will be revisited, says new mines minister Wylbur Simuusa. In an interview, Simuusa, who was one of the major proponents of the windfall tax during the last parliamentary session, said the PF government would meet mine owners to deliberate on the windfall tax.
"On the windfall tax, we will definitely sit down with all the stakeholders and reach a win-win situation because we know and we have been told even by the IMF International Monetary Fund and other people that our taxation in the mining industry is not adequate. So that has to be revisited and we will see how we can create that balance that will be satisfactory to everybody. Definitely that will be on the cards," said Simuusa, a mining engineer by profession.
"We need to know as a country how much we are mining; what is going out and what are the things we need to account for. So definitely the accounting of our minerals will be priority. We will obviously look at the issue of taxation for mining; we will see how we can create a win-win situation for the Zambians and for the foreign mine owners."
Simuusa, who is also Nchanga member of parliament, said the government would also look at the gemstone sector.
He said the sector must contribute to the Zambian economy.
"We will look at labour issues. There are a lot of labour issues related to mining," Simuusa said.
"We will look at the situation of having more of our Zambians getting into ownership and getting involved in running of mines so that even our people are in competition with the people that are coming in. We want to have more benefits from our mines."
Community development, mother and child health deputy minister Jean Kapata, who is also Mandevu legislator, thanked President Sata for having shown confidence in her.
Foreign affairs minister Chishimba Kambwili pledged to work towards strengthening Zambia's ties with the international community.
"The world is a global village, so I will make sure that Zambia keeps its relationship with our supporters, our cooperating partners and our neighbours. We shall ensure that we abide by the protocols that Zambia has signed with the international organisations," Kambwili said.
He committed himself to work hard and not let the Zambians and President Sata down.
Meanwhile, Inonge Wina, the parliamentarian for Nalolo constituency in Western Province who was appointed minister of chiefs and traditional affairs, said there was need to uphold Zambia's culture.
"I am grateful for that appointment and I will do my best to make sure I serve my country," she said. "I am very delighted and relieved that Barotseland activists have been released because most of those detainees had done no wrong. For them to be incarcerated has been extremely unfair."
Chipili member of parliament, who was appointed Luapula Province minister, Davies Mwila, called on opposition parliamentarians to work with the government to foster national development.
"I am excited about my appointment in that I am going back to my province and I would like to appeal to members of parliament from Luapula including the opposition MMD MP Mwansa Mbulakulima that we work together as a province so that we develop the area," said Mwila.
Defence minister Geoffrey Bwalya Mwamba said he would perform to the best of his ability.
"It's a great ministry. There are a lot of challenges and I am humbled by this appointment by President Sata and I assure him that I will not let him down and I will not let the people of Zambia down," said Mwamba, who is also Kasama Central member of parliament.
Labels: CHISHIMBA KAMBWILI, GEMSTONES, IMF, INONGE WINA, JEAN KAPATA, WINDFALL TAX, WYLBUR SIMUUSA
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Govt urges small-scale miners to form joint ventures
Written by masa
Friday, September 25, 2009 6:01:56 AM
MINES minister Maxwell Mwale has urged small-scale miners to form joint ventures with international firms for them to develop the gemstone industry.
During the official opening of a Small Scale Miners Strategic workshop in Lusaka yesterday, Mwale, in a speech read on his behalf by mines permanent secretary Dr Godwin Beene, said it was time that the sector started attracting Foreign Direct Investments (FDIs) as the government was only in a position to create a conducive business environment for the sector.
“Just as the big mines are attracting FDI, it is time that the small-scale miners also started working with foreign investors if they are to get finances which will help in profitably running their business,” he said.
Mwale also urged the sector to become more organised so that it could start accessing finances from the local commercial banks.
“It is very important that we cause the banks and lending institutions to start championing the small-scale mining sector,” he said. “But this can only be done once you as miners realise that mining should be conducted like any other business venture.”
Mwale acknowledged the challenges that most miners experienced in accessing financial assistance but said the problem could easily be resolved if the miners took the time to learn how to write bankable business plans which could easily be accepted by the lending institutions.
Labels: GEMSTONES, JOINT VENTURES, MAXWELL MWALE, MINING
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British gems expert killed in Kenya
BBC
Tue, 25 Aug 2009 22:46:00 +0000
A LEADING British-born gems expert has been killed in Kenya by a gang armed with clubs, spears, bows and arrows.
Campbell Bridges, 71, was attacked by 20 men in the grounds of his
600-acre property near the southern town of Voi.
He fought off the mob with his son Bruce and four Kenyan staff but died of his injuries on arrival at hospital.
Police are investigating the attack which is reportedly connected to a three-year dispute over access and control of Mr Bridges' gemstone mines.
Police said he was driving his pick-up truck in the grounds of his home within a national park when he was ambushed by about 20 men brandishing crude home-made weapons.
Witnesses said his injuries were caused by stab wounds from a knife. No-one else was injured in the attack on Tuesday.
Mr Bridges' body has since been flown to the capital Nairobi.
A close friend, the Rev John Ellison, 72, from Alton, Hampshire, told the BBC Scotland news website that the internationally-renowned gemmologist would have put up a strong fight.
"He was very fit, strong and confrontational but a lovely man nevertheless," he said.
"He would stand up to anyone. He would have gone in with his fists flying if someone attacked him."
He added that his "wonderful" friend had "a quick fuse if anyone was dishonest".
Mr Bridges was born in the UK but had lived in the African country most of his life.
He is credited with discovering the green Tsavorite gem, a rare stone unique to the region, and also worked as a special consultant to the New York jewellers, Tiffany and Co.
Mr Ellison revealed that Mr Bridges had previously been threatened as he owned mining rights and therefore knew where the deposits were.
"He was very well known in Africa and the gemstone industry, which gave him a lifetime achievement award," he said.
"He had a fund of stories and I was privileged to have been the first person outside his family to know of his discovery in 1971. This is terrible news."
A UK Foreign Office spokesman said: "We can confirm the death of Campbell Bridges on 11 August following injuries sustained in an attack near Voi in Kenya.
"British consular officials are liaising with the local authorities who have confirmed that an investigation is under way."
Mr Bridges leaves a wife, Judy, and two grown-up children, Laura and Bruce. -- BBC
Labels: GEMSTONES, KENYA, LAND REFORM
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Gemfields, Rox Conduit takeover talks fail
Written by Nchima Nchito Jr
Tuesday, July 21, 2009 6:21:57 PM
NEGOTIATIONS between coloured gemstone producer Gemfields and Rox Conduit (RoxC) regarding a possible takeover have collapsed.
Gemfields is one of the world's leading coloured gemstone companies.
With a strong focus on Zambian emeralds, Gemfields mines, processes and markets both rough and polished gemstones internationally. Kagem, the flagship mine, sold US $12.6 million worth of emerald and beryl in 2007. The mine has consistently produced some of the finest Zambian emeralds since 1984.
RoxC was in negotiations with Gemfields with the intention of taking over the operations of the company. According to a statement from Gemfields, the decision to drop negotiations was reached following extensive consultations with all stakeholders.
"Following careful consideration of the indicative terms of the possible offer and consultation with Gemfields' major independent shareholders, the preliminary discussions between RoxC and the committee in respect of the possible offer have been discontinued," Gemfields stated. "The committee has notified RoxC of that fact and, at this point, the committee does not have any information as to whether RoxC will pursue its interest in the possible offer on the same or revised indicative terms, therefore the company remains in an offer period for the purpose of the takeover code."
In June, Gemfields had revealed the offer by RoxC for a possible takeover bid. Gemfields, which owns Kagem emerald mine in Zambia, forms part of Pallinghurst Resources.
Labels: EMERALDS, GEMFIELDS MINES, GEMSTONES, ROX CONDUIT
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Gemfields announces reduction in mining scale at Kagem emerald mine
Written by Nchima Nchito Jr
Saturday, April 04, 2009 4:01:01 PM
GEMFIELDS has announced the reduction of the scale of mining at its Kagem Emerald Mine and the writing down of the mines value to Zero.
Gemfields is a London listed company which is part of the
Pallinghurst Resources and considered to be one of the world’s largest emerald mines, with 25 per cent owned by the Zambian government. The Kagem emerald mine, where the Zambian government holds a 25 per cent stake, is Gemfields’ principal source of emeralds for its downstream business.
According to mining weekly, the company stated that it had chosen to minimise all nonessential capital, project development, and exploration expenditure until the market prospects for recovery in the gemstone market became clearer.
“The ongoing uncertainty in the global economy, the loss-making performance during the period and the lack of reliable emerald prices make it difficult to justify forecasts showing a positive cash flow with reasonable certainty. This in turn complicates valuing the mine,” it stated.
Gemfields stated that it had opted to take a conservative approach in estimating the emerald prices achievable for the reminder of 2009.
“The company’s performance has been, and would likely continue, to be significantly lower than projected at the time of its listing on the AIM, and would result in operating loss for the financial year ended June 2009,” Gemfields stated.
During the six months ended December 2008, Gemfields reported a loss of US $186.5 million.
Meanwhile, Gemfields stated that it would actively pursue its strategy for integrating the supply chain and improving the marketing of coloured gemstones during the coming year. It is hoped that the efforts would increase the demand for the company’s products, thereby supporting an increase in prices and achievable margins.
“We remain optimistic, however, that our current focus on reducing operating costs and improving mining efficiencies and our efforts to support brand awareness will ensure that Gemfields is well placed to reap the benefits when global conditions improve,” stated company chairperson Graham Mascall.
Labels: EMERALDS, GEMSTONES, KAGEM, PALLINGHURST RESOURCES
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ESMAZ urges govt to address smuggling of stones
By Correspondent
Tuesday May 13, 2008 [04:00]
EMERALD and Semi-precious Minerals Association of Zambia (ESMAZ) president Benjamin Njanji has urged the Ministry of Mines to put up policies that would deter the smuggling of stones from restricted areas. And mines minister Dr Kalombo Mwansa said the government would continue putting in place policies that would ensure the gemstone industry was developed and able to contribute to national development.
Speaking last weekend, when Dr Mwansa toured the gemstones mines in Lufwanyama district on the Copperbelt, Njanji said the association was worried that the emerald restricted area was not maintaining its restriction status.
Njanji said it was imperative that the status of being a restricted area was maintained to stop the smuggling of emeralds from the area.
He also said the association was worried that the gemstone sales certificates were being issued at the ministry, saying it was too open and was contributing to the flooding of gemstones on the black market disadvantaging the people on the ground
He urged the government to support the small-scale miners so that they could also improve their performance like their colleagues in the agricultural sector.
Njanji said small-scale farmers were doing fine because of the support they were receiving from the government hence it was imperative that government extended the same support to the small-scale miners to improve their operations.
He said the gemstone sector had the potential to create many job opportunities for the Zambian youths.
Dr Mwansa said he was happy that the small-scale mining industry was performing better and that the miners were showing seriousness in developing the sector.
Dr Mwansa said the government would always support the good efforts miners were putting up because its interest was to see the gemstone industry contribute to national development.
Labels: BENJAMIN NJANJI, ESMAZ, GEMSTONES, KALOMBO MWANSA
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Gemstones: Zambia losing $7BN.
By CHISHALA MUSONDA and NKWETO MFULA
PRESIDENT Mwanawasa has revealed that Zambia is losing an estimated US$7 billion annually due to the rampant illegal exports of gemstones by dubious business people. President Mwanawasa was speaking at the official opening of the Gemstone Processing and Lapidary Training Centre in Ndola yesterday. Government and donors spent K2 billion and US$80,000, respectively, on the establishment of the centre.
The President said Zambia’s gemstone deposits could act as a catalyst for employment opportunities in the small and medium-scale enterprises (SME) sector and accrue to the nation a lot of foreign exchange.
So far, 50 people have been trained in gemstones polishing.
The centre is under the Ministry of Science, Technology and Vocation Training.
"Zambia is endowed with numerous precious and semi-precious stones that can fetch billions of Kwacha on the world market.
Nearly every province has its share of gemstone deposits,” he said.
"Zambia is estimated to account for 20 per cent of the world production figures with a value of about US$7 billion per annum."
Unfortunately, Zambia was not earning much from its vast gemstones wealth largely because the gems reached the market in very raw form due to lack of skill and appropriate technology for value addition among small-scale miners.
Mr Mwanawasa said the gemstone sector was characterised by rampant illegal trading accounting for more than 50 per cent of the country’s total production.
But with the opening of the training centre, the President was hopeful people living in the gemstone mining areas would now be able to acquire lapidary skills and own businesses in the precious stones sector.
"It is really ironic that people surrounded by rich deposits of expensive minerals should be poor while a few from distant places should come to the gemstone areas and make huge amounts of dollars, sometimes using the poor villagers as casual labour,” he said.
"This unfair exploitation of citizens by unscrupulous gemstone dealers must come to an end.
Let people learn how to create wealth from the raw materials that God gave them by adding value to the stones and selling the polished products at established markets."
The President said graduates from the lapidary training centre would need support from Government in order to become players in employment creation and entrepreneurship development.
He said when his Government came into office in 2002, it redefined economic priorities including mining which was placed as a priority sector for income generation.
He told the gathering at the centre on the former Lever Brothers premises that they were witnessing the birth of a training centre for small-scale gemstone miners.
"Our cooperating partners, the World Bank and the European Union have spent close to US$80,000 on the purchase of equipment," he said.
Minister of Science and Technology, Peter Daka, said the establishment of the lapidary centre, the first of its kind in Zambia was a milestone because Government realised the need for Zambia to benefit from the gemstones wealth.
After the official opening, the President had a closed-door meeting with chiefs on the Copperbelt.
Meanwhile the President announced that the Chinese government has finally approved the US$39 million concession loan for the manufacture of equipment for use in road construction and rehabilitation.
President Mwanawasa announced the development in Luanshya yesterday when he commissioned the Luanshya-Masangano by-pass road.
He said the long-awaited loan was approved by the Chinese government to improve the road infrastructure in Zambia.
He said the Chinese Ambassador to Zambia informed him that the loan was signed on Thursday last week.
“I want to commend the Chinese for making the loan available.
We want to develop like yesterday and not tomorrow,” he said.
And President Mwanawasa said the Luanshya-Masangano road was an important road that led into Luanshya and also an important by-pass for heavy trucks.
The rehabilitation gobbled K33 billion.
The Organisation of Petroleum Exporting Countries (OPEC) contributed 88 per cent and the World Bank put forward 12 per cent.
Mr Mwanawasa said the road sector investment programme by Government and donors had seen investments of US$1.6 billion over a period of 10 years on the core road network accounting for 40,000 kilometres that would have been improved to good condition by 2013.
He said this should be done together with the other objectives of creating 30,000 jobs and fostering economic growth and prosperity.
“I wish to express my sincere gratitude to OPEC and the World Bank for facilitating the successful achievement of this important milestone in the road sector investment programme,” he said.
He urged the Ministry of Works and Supply to prioritise the enhancement of safety on the roads such as the Chingola-Kitwe where many lives were lost to rampant accidents.
“The RDA must endeavour to curb over-speeding and overloading on roads,” he said.
Minister of Works and Supply, Mr Kapembwa Simbao, said the ministry was yet to embark on the rehabilitation of the Kitwe-Kalulushi road.
A K7.5 billion contract had been awarded to China Henan.
And WB country manager, Mr Kapil Kapoor, said the bank was happy to be a partner with Government in its road sector investment programme.
Labels: DAILY MAIL, GEMSTONES
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