COMMENT - “Why should they tell us they are making losses from the time they came? If they were making losses, they could have gone. They are liars, cheats and take us for fools. I will not allow that. Those that want to work with us will follow our laws. It’s a sovereign state and if we say the way we want to manage our tax regime we decide we will not be blackmailed by investors. Those that don’t want to stay can go. Sales tax is here to stay, VAT is gone. We decide,” said President Lungu."
From 2014: Anil Agarwal brags about the amount of money he dragged out of Zambia. "KONKOLA Copper Mines owner Anil Agarwal has mocked the Zambian government over the paltry amount of money he paid to buy the mine, which is now giving him millions of dollars in profit.".
http://maravi.blogspot.com/2014/05/comment-i-hope-this-is-final-push-in.html
(LUSAKA TIMES) KCM TAKING US FOR FOOLS…if it’s the will of the people to divorce, I will do so – Lungu
By Charles tembo in Ndola
on May 18, 2019
PRESIDENT Edgar Lungu says Konkola Copper Mines are liars, cheats and want to take Zambians as fools. President Lungu said he is on the Copperbelt to end the marriage between his government and Konkola Copper Mines.
He said “enough is enough of exploitation from KCM” despite buying the mine so cheaply.
President Lungu said this upon arrival at the Simon Mwansa Kapwepwe International Airport in Ndola yesterday.
“We had a few matters to do at State House in Lusaka and of course, the Vice-President came back last night and I had to go and see her, she is doing very well. But my coming here is for one reason, one reason, the people of the Copperbelt want a divorce between themselves and copper mines namely KCM and Mopani. I want to hear it from the unions and the reason is simple, people have cried! I saw some women, some of them half naked crying that they feel cheated by the mining company KCM, and Mopani to some extreme,” President Lungu said.
“I have come here that if it’s the will of the people to divorce, I will do so. The message being made is clear. I want to consult the Chamber of Mines. I will be meeting them. The Mineworkers Union and other unions to find out what they think and I also have my position, and my position is that enough is enough. Zambians have been taken for a ride by the mining companies.”
He said KCM was bought so cheaply.
President Lungu said the Attorney General Likando Kalaluka and other lawyers would guide on how to share assets.
“KCM was bought for (US$) 25 million and we paid it all, our copper paid for the mines. They have done nothing since then, just promises, we can’t continue…. I am aware that there is a law in this country which should be followed, the Attorney General is here, the lawyers are here and will guide us on how we proceed with the divorce. So we will talk without any fear,” he said.
“I want to say this frankly because I know the opposition, those detractors who don’t see any good in what we do will be saying he is scaring investors. We are not going to scare any investor. Their investment is safe and those who want to come and invest should do so. I know there are other investors who are willing to come and invest in the mines. Immediately we kick them [KCM and Mopani] out, others will come and invest. There is engagement and disengagement even in marriage if things go bad…I am saying this without fear or favour.”
President Lungu said KCM had made enough profits.
“They have made money and taken money. We will ask the lawyer to tell us how we will share the assets and I know we will get married very soon. These are our mines.”
“Why should they tell us they are making losses from the time they came? If they were making losses, they could have gone. They are liars, cheats and take us for fools. I will not allow that. Those that want to work with us will follow our laws. It’s a sovereign state and if we say the way we want to manage our tax regime we decide we will not be blackmailed by investors. Those that don’t want to stay can go. Sales tax is here to stay, VAT is gone. We decide,” said President Lungu.
Labels: CORRUPTION, EDGAR LUNGU, KCM, MINING, PF, TAX EVASION
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COMMENT - This is awesome. What happened?
(LUSAKA TIMES) ZCC IH sues FQM claiming $1.4 billion
November 14, 2016
ZCCM Investments Holdings has started the process of claiming up to $1.4 billion from First Quantum Minerals Ltd accusing the firm of engaging in fraud.
The claim includes
$228 million in interest on
$2.3 billion of loans that ZCCM-IH said
First Quantum wrongly borrowed from the Kansanshi copper mine, as well as
20 percent of the principal amount, or $570 million, according to an internal company presentation, dated Nov. 4, obtained by Bloomberg.
The company is also seeking $260 million as part of a tax liability the Zambia Revenue Authority said Kansanshi owed it, as well as
the cost of the mine borrowing money commercially that ZCCM-IH said could have been avoided.
ZCCM-IH said in papers filed in the Lusaka High Court on Oct. 28 that First Quantum used the money as cheap financing for its other operations.
ZCCM-IH also last month filed a notice of arbitration against Kansanshi in London over the same matter.
No figure was mentioned in the court filings.
ZCCM-IH owns 20 percent of Kansanshi.
But in a statement released Monday evening, FQM President Clive Newall said having carefully studied the claims made in both the Notice of Arbitration and Statement of Claim, First Quantum is firmly of the view that the claims are utterly without merit, or indeed any foundation in facts.
“It is notable that the Kansanshi Mining Plc deposits were fully repaid to KMP and were then used to fund a major investment program in Zambia, including the successful construction and commissioning of the Kansanshi smelter and expansion of the processing plant and mining operations.
“On October 28, 2016, KMP also received a Statement of Claim filed in the High Court for Zambia naming additional defendants, including First Quantum, its subsidiary FQM Finance Ltd., and a number of directors and an executive of the named corporate defendants. This dispute arises out of the rate of interest paid on deposits made by KMP with the Company’s financing entity, FQM Finance Ltd. The funds on deposits were retained for planned investment by KMP in Zambia.”
He said, “FQM Finance paid interest on the deposits to KMP based on an assessment of an arms-length fair market rate, which is supported by independent third party analysis. ZCCM disputes that interest rate paid to KMP on the deposits was sufficient. Unfortunately, ZCCM has taken the extra-ordinary additional step of commencing a further action in the High Court for Zambia, making allegations repeated from the Notice of Claim against certain First Quantum directors and an executive that are inflammatory, vexatious and untrue.”
“In fact, KMP is now indebted to FQM Finance for the funding of further investment in Zambia. The Company is currently engaged in constructive discussions with representatives of the Zambian Government, which holds a 92% direct and indirect majority shareholding in ZCCM, with a view to achieving an amicable resolution. We do not believe it is appropriate to comment further on the arbitration or court proceedings while they run their proper course, but we will provide further information as and when required.”
Meanwhile, Philippe Bibard, a spokesman for a minority shareholder group based in France said FQM is disregarding the rights of minority owners in ZCCM-IH in dealing directly with government.
*With Additional Reporting by Bloomberg
Labels: KANSANSHI MINING PLC, KCM, TAX EVASION, TAXATION, ZCCM-IH
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(GUARDIAN UK) Zambian villagers take mining giant Vedanta to court in UK over toxic leaks
Fears of environmental catastrophe as report finds ‘constant contamination’ of streams around copper mine while locals report health problems and failed crops
Shimulala village borehole
Saturday 1 August 2015 22.35 BST
Last modified on Sunday 2 August 2015 00.30 BST
A London-listed mining giant has been polluting the drinking water of villages in Zambia and threatening a wider health disaster, the Observer has found.
Leaked documents and a confidential internal report commissioned from Canadian pollution control experts show that Vedanta Resources’ giant mine in Zambia’s Copperbelt region has been spilling sulphuric acid and other toxic chemicals into rivers, streams and underground aquifers used for drinking water near the mining town of Chingola.
‘I drank the water and ate the fish. We all did. The acid has damaged me permanently’
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The result, say people in four villages living near the giant 12 sq mile mine owned by Vedanta subsidiary KCM, is stomach pains and illnesses, devastated crops, loss of earnings and permanent injuries. The claims of villagers living near one of the largest copper mines in Africa are backed by a leaked letter from a KCM doctor stating that water collected for testing from Shimulala village in 2011 was unfit for human consumption. “The water is acidic and the copper and iron levels exceed permitted levels,” the doctor wrote. “The impurities … can cause cancer in the bloodstream and unhealthy conditions in internal organs. The people in that village should be advised to stop using the same water.”
London law firm Leigh Day has issued proceedings in the high court in London on behalf of 1,800 people who claim to have been affected by the company’s pollution. “The case could take three years to resolve,” said Leigh Day senior partner Martyn Day, recently returned from Zambia, where lawyers and paralegals have been taking witness statements from people living near the rivers and the company’s operations.
Lawyers Leigh Day: troublemakers who are a thorn in the side of multinationals
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A Vedanta spokesman said: “All Vedanta’s operating subsidiaries take the health of their employees, the wellbeing of surrounding communities and the environment very seriously. Our subsidiaries are committed to ensuring they operate in a safe and sustainable way.”
But a scientist who worked for more than 15 years with KCM said there has been little maintenance of critical equipment since Vedanta bought the mine, despite production of some 10,000 tonnes of copper and 300 tonnes of cobalt a year. He accused Vedanta of releasing more acid than it has authority for. “There have been heavy spillages and massive leakages. Acid has been leaking all over the place. The pollution control pond is handling too much material. No effort has been made to correct this scenario. Only one of four [waste] pipelines is running – the rest are in disrepair.
“Degraded equipment, leaking pumps, pipes, thickeners and settling ponds have [resulted in] excessive spillages. Water overflowing into the Mushushima river and subsequently the Kafue river poses a possible environmental catastrophe downstream,” he said.
“The company has very good plans on paper that have not materialised on the ground for the last 10 years. It is absolutely clear that there is a massive problem. Because the river Kafue feeds into the Zambezi river, which provides drinking water for much of Zambia, the pollution could affect hundreds of thousands of people downstream, he said. “A disaster is very likely. It has the potential of affecting people hundreds of miles away. Water supplies could be damaged and aquatic life would die.”
A leaked report by the Canadian engineering company SNC-Lavalin, which in 2010 was employed to advise Vedanta/ KCM on how to control continuing pollution, says that solids, dissolved copper and acids are being spilled. It refers to “constant contamination” of streams, and says the main pollution control dam is often full to capacity. It adds that reservoirs overflow and there are leakages from pipes and a lack of spare parts. The engineers’ report calls for 17 major and minor actions to stop the spillage of polluted water into the environment.
Labels: COPPER, KCM, POLLUTION, VEDANTA
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Zamtel disconnects KCM over K8m bill
By Joan Chirwa-Ngoma
Sat 18 Jan. 2014, 14:00 CAT
KONKOLA Copper Mines has lost critical underground communication network after Zamtel disconnected the service yesterday owing to a debt of more than K8 million accrued over a year.
Sources have disclosed that Zamtel had no option but to disconnect Konkola Copper Mines (KCM)'s emergency phone lines being used for communication underground after holding a series of meetings to find ways of settling the outstanding bill.
This means that the country's biggest mine will carry out its underground operations without emergency communication lines until the bill is settled.
"Big as they are, KCM now have no emergency communication service. Meetings were held at a high level between KCM and Zamtel for the mine to settle the bill, but nothing has happened so far. This is why Zamtel's management decided to just cut off the service until the bill is settled. This has been outstanding from January last year (2013)," said the source.
Another source said KCM had always been telling stories about the debt.
"They are nuisance; they are always telling stories about reconciling the debt. They have not paid for over a year. They have so far committed small amounts so that we can re-connect them but we cannot consider that," said another source.
KCM's public relations department could not respond to a query by press time.
Labels: ELECTRICITY, KCM, ZAMTEL
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(STICKY) KCM owner mocks zambians and govt
By Chiwoyu Sinyangwe and Gift Chanda
Thu 15 May 2014, 18:20 CAT
COMMENT - I hope this is the final push in showing the people and politicians where Zambia's copper wealth is disappearing to. How can anyone justify paying one cent in 'donor aid', when the money lost through the IMF/World Bank's privatisation dwarfs donor aid inflows. Zambia and Africa don't need donor aid - they need to get paid. Africa is not supported by the West, Africa is and has been supporting the West for 400 years. Time to stop. We want development, paid for by our own natural resources.
Let's also remember who was for the Windfall Tax before they entered office in 2011, and who is against it now:
(STICKY) Chikwanda describes advocates of windfall tax as lunatics
Also check out: ZAMBIAN-ECONOMIST - Copper Colonialism: Vedanta In Zambia
More on Vedanta's hiding profits here.
(ZAMBIAN ECONOMIST) Zambia is Mocked by Vedanta
Saturday, 17 May 2014
(LUSAKA TIMES/THE POST) Flashback: IMF, World Bank pressured govt to privatise mines – Nawakwi
By Chiwoyu Sinyangwe and Chibaula Silwamba
Friday November 02, 2007
(LUSAKATIMES) Video of Anil Agarwal, bragging about the billions of dollars he has dragged out of KCM, Zambia and Africa's largest copper mine. On YOUTUBE.
KONKOLA Copper Mines owner Anil Agarwal has mocked the Zambian government over the paltry amount of money he paid to buy the mine, which is now giving him millions of dollars in profit.
And ActionAid Zambia economic justice project officer Patrick Nshindano says Agarwal's mockery is very disheartening.
In a video released by activists from Foil Vedanta, Agarwal, who is Vedanta boss, boasted of raking in US500 million per year when he only bought the mine for US$25 million.
KCM is currently reported to be battling with operational challenges.
Agarwal mocked the Zambian government for giving him VVIP treatment when he came to acquire the asset and eventually becoming majority owner of KCM at the current 69 per cent.
Speaking to the Jain International Trade Organisation in Bangalore, India between March 22 - 23 this year, Agarwal told the cheering crowd how he bought KCM for a song, rather than the US$400 million asking price.
In the 3:58-minute video, a bragging Agarwal describes his surprise at receiving a VIP welcome to the Zambian Parliament, and ridicules the then Zambian president Levy Mwanawasa for claiming that Vedanta would improve the lives of Zambians, especially those in Chingola and Chililabombwe.
Agarwal reveals how he duped late president Mwanawasa on their first meeting that 30 members of his delegation missed the connecting flight out of Johannesburg into Lusaka, when in fact he had only travelled with one engineer from his firm.
Agarwal boasted that KCM was giving him US$500 million every year in profit, plus an extra US$1 billion.
In recent years, KCM has touted to dismiss close to 2,000 workers from its mining units to cut down on labour costs and improve its profitability.
Vedanta had continued to claim that they were making losses or a minimal profit at KCM.
The mining unit claims declining ore grades at its mining units and high operational costs on the backdrop of high labour and energy costs was hurting the country's second-largest copper producer.
Below is the excerpt Agarwal gave in Hindi:
"Seven to eight years back, hunger remains to do big work. Pondering what to do...how can we let life go in vain? I saw it in the paper FT Financial Times. (Agarwal drinks bottled mineral water). There was largest copper mine in Africa. That copper mine was up for sale. That government was privatising it. I got quite interested in it. I asked few people; they replied, 'Aren't you ashamed?' 'What ridiculousness you are talking off?' I told them 'Where is the problem in talking?'
'Speak to them let us see...' Then he saw it, it was a big deal. I have a friend in McKensey - Ranjit Pandit. I went to him, asked him to make papers. 'Make the papers beautiful, professional.' Papers were prepared. We kept it at US$400 million. In pocket we do not have US$4 million!... bid for US$400 million! US$25 million ... US$25 million that we had, ha ha ha... Take chance in life definitely! All people sitting there... Take chance! If you won't take chance, nothing will happen (Clapping, Whistling...)
Why we are different - different because we take chances. I told you we have to take chance. Then we said 'US$25 million we will give you cash and US$375 million we have to invest in making the machines running'. We forgot the matter, and suddenly in about a month or so, we received calls; they invited us. We called up and inquired. They confirmed: 'This company is yours'... 'Really?' I took one of our engineers and went to Johannesburg and further changing flight there to Lusaka.
When we arrived there, we were surprised to receive VVIP treatment there, red carpet, entire government machinery has arrived at airport to receive us. Surprised seeing such arrangement, we asked someone. 'It's all for you sir'. 'How many people you have in the delegation team?' Ministers, VVIP vehicles, cavalcade...'
We were told 'You will be going to the Parliament today; and
President's place as well... Where are your people? It's necessary to meet the President.' Repeatedly, we were asked 'Where is your delegation?' I asked 'What delegation? We are the delegation only'.
We were taken to the President. The President... 'Your Excellency, we are 30 people in our delegation. But they missed the flight at Johannesburg.' (Audience laughs). 'Can you wait till tomorrow? They all will come'. 'No no no. The Parliament is tomorrow, we have to decide today. Key is ready. Are you ready?' 'I am ready, I am always ready. I will handle it'. (Laughing).
And they came, what a Parliament House! First time I saw... I had held a bead necklace (in the name of God RAM) and kept chanting, moving ahead. With my smiling face. When I sat there with my man, the President came and sat by our side. He told the entire Parliament that what great people we are, and our empire and that 'they (KCM) will make our lives gorgeous. And they will make schools, make hospitals and blah-blah... We just kept watching, chanting God's name there. All you make, what we make! Ah ha ha ha ha ha ha.
We took over the company. It's been 9 years, and since then, every year it is giving us a minimum of US$500 million plus US$1 billion every year… it has been continuously giving back. It's a matter of taking a chance. I will keep telling you stories. We had oil company. They told us no one else can buy oil company..."
Agarwal's 'motivational talk' has angered Foil Vedanta, which had previously released figures from Vedanta's annual reports showing that the company made US$362 million in 2013.
Vedanta chief executive officer Tom Albanese disputed this during his visits to Zambia last February, repeating the previous claim that KCM was making a very low profit or a loss due to high operational costs and higher taxes.
But Nshindano, from ActionAid Zambia, said the statement from Agarwal was disheartening.
"It is saddening even that an investor can brag that he was given red-carpet treatment without taking into consideration what kind of importance that project has for the people of Zambia," he said.
Nshindano urged the government to move in to ensure Vedanta accounts for its operations.
"Definitely, the government needs to move in and ensure that the right corrective measures are taken to see to it that Zambians benefit from the mine," he said.
He also said the Zambian officials that negotiated the sale of KCM owed Zambians an explanation on why a company worth billions was sold to Vedanta Resources for peanuts.
"We sold this asset in a hurry but we now needed to ensure that it benefits us," Nshindano added.
The London Stock Exchange-listed Vedanta made a profit of US$26 million from KCM for the three-month period October to December 2004, effectively recovering the purchase price in just three months.
A few weeks ago, a protest at the Zambian High Commission in London called on Vedanta and the Zambian government to release KCM's annual reports, containing the official figures on profits and tax payment, which are currently kept secret.
They also suggested that Vedanta should be forced to pay the fine of US$2 million served by Zambian courts in 2011 as compensation to 2,000 claimants poisoned by major pollution of the Kafue River in 2006, and stop ongoing spills affecting Chingola residents.
In addition, they joined the calls of KCM employees and former employees in Zambia, who are demanding that retrenched workers be properly compensated.
The government came under heavy attack from prominent citizens, the mining area's chamber of commerce and the Zambia Congress of Trade Unions (ZCTU) for allowing the mine to be sold for peanuts.
Stakeholders questioned the deal and the competence of the negotiating team.
On its part, Vedanta Resources has been awarded an eight-year tax relief.
Labels: IMF, KCM, MINING, SUNIL AGARWAL, TAX EVASION, VEDANTA, World Bank
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KCM should not be treated like a small god - Sichula
By Chiwoyu Sinyangwe in Chingola
Tue 03 Dec. 2013, 14:00 CAT
CHINGOLA residents should start preparing for reality that one day, they will have to survive without mining, says district commissioner George Sichula.
And Sichula says Konkola Copper Mines should not be treated as a small god and be allowed to arm-twist the government into submitting to its demands and extra incentives.
Sichula said, recent economic resurgence in the former cleanest town in Zambia was due to economic refocusing and diversification from mining as some economic activities sprung up in different parts of the town.
"We have a big and ready market in the Democratic Republic of Congo for maize, crops and all sorts of agriculture products," Sichula said in interview.
"As a district, we are looking at investments in agriculture, fish farming and just other investors who are coming to invest away from mining. And these investments have been increasing since the PF came into power."
Sichula said the recent economic resurgence in Chingola, coupled with increased infrastructure development had seen some natives who abandoned Chingola returning and investing in the town.
"We need to accept that someday in future, copper, being a wasting asset, will finish," he said. "It is not going to be there forever and people must begin to think of something away from mining and diversify into agriculture. There are areas that have no minerals and are doing better than us. We also need Manda Hill and Arcades Shopping Malls and those will begin to employ people and make money. Mining is not everything and we shouldn't treat KCM like a small god in Chingola."
And Sichula said, Vedanta Resources had not shown commitment to running KCM in a manner that adds value to Chingola.
"KCM has not been sincere in the way they conduct their business," he said. "The way they have been planning to lay-off massive numbers of workers without consulting government shows that KCM has an element of pride and they think they are government on their own. But one thing they are forgetting is that issues of jobs are very sensitive and should be handled as such."
Sichula advised KCM to stop offending government.
He was optimistic that the technical committee on mining headed by Tranta Mining chief executive officer, Dr Sixtus Mulenga, would deliver a report that will guide government in dealing with KCM.
"I don't know how they were dealing with the previous government but as for this Patriotic Front, it's the government that can't be compromised and we are not in government to deal in barter system," said Sichula.
"We know with these decisions on jobs, KCM was trying to blackmail government and sit down and negotiate…but they can't blackmail us and we are now just waiting for the report from the technical committee."
Labels: GEORGE SICHULA, KCM
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Kumar was very arrogant - Shamenda
By Allan Mulenga
Sun 01 Dec. 2013, 14:01 CAT
LABOUR minister Fackson Shamenda says he will not support deported Konkola Copper Mines chief executive officer Kishore Kumar's return to Zambia because of his arrogance to him and President Michael Sata.
Commenting on Vice-President Guy Scott's statement that Kumar has appealed against the deportation and the government was considering the move, Shamenda said Kumar not only exhibited arrogance towards him, but also to President Sata.
"I don't like his Kumar approach to industrial relations and I will not support his coming back anyway. From my point of view, I don't like arrogant employers. Even they have an attitude like the apartheid or neglecting the workers, we are trying to harmonise industrial relations," he said.
"...not that employers should be arrogant; we want to have a situation where there is harmonious industrial relations for higher levels of productivity. The employer will get his part, the government will get the resources from the taxes and then the employees will have a comfortable life. That's all what we want in life and that is the approach of the Patriotic Front government."
Shamenda said he would not tolerate arrogant employers in the country.
"I have reported his behaviour which is highly unwarranted. As for whether he was going to come back or something, my working relationship with him will be very difficult," he said.
Shamenda said unlike his predecessor, Kumar was not reasonable when dealing with labour matters.
"I don't care whether there is Kumar or no Kumar, but as far as I am concerned Kumar was very arrogant. He was arrogant to me; he was arrogant to the President. So for me I have no time for such characters. So far I am working very well with other persons, like his predecessor; he was a gentleman. I highly regret that he left. You could differ in principle, but still more he was a very humble fellow. He was a polite guy," he said.
Shamenda said Kumar should shoulder the blame for his deportation.
"...for Kumar when the President said, 'you should go and tell Kumar he should not dismiss people', he said, 'me industrial relations are not my priority, I am going for a technical meeting'. I said, 'my friend, the President is saying I should discuss this issue with you'. He says, 'policy statements are rhetoric.' That is how the whole thing started and then he went for that technical meeting at Intercontinental Hotel. That is when the Minister of Home Affairs wanted to confirm from him, then he started running away. That is how he was declared a PI prohibited immigrant," said Shamenda.
On Friday, Vice-President Scott told Parliament that Kumar had appealed against his deportation, and the government was considering the move.
Labels: FACKSON SHAMENDA, GUY SCOTT, KCM, KISHORE KUMAR, TAX EVASION
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KCM boss contests his deportation
By Abel Mboozi
Sat 30 Nov. 2013, 14:01 CAT
DEPORTED Konkola Copper Mines chief executive officer Kishore Kumar has appealed against the action, and the government is considering the move, Vice-President Dr Guy Scott told Parliament yesterday.
And Vice-President Scott told the House that there was nothing sinister for UPND vice-president Dr Canisius Banda or any other Zambian to visit State House to exchange notes with the head of state on national issues.
Meanwhile, Kabompo West UPND member of parliament Ambrose Lufuma has questioned why the permanent secretary at the Ministry of Mines should sit on the board of First Quantum Minerals Limited.
Responding to Chimbamilonga PF member of parliament Hastings Chansa, who asked what the position of the government was on the proposed loss of jobs at KCM and on Kumar, who fled the country, Vice-President Scott said he had information that the chief executive had appealed.
This was during the 30-minutes question time session for the Vice-President in the House.
Kumar was early this month deported for defying President Michael Sata's directive for KCM not to lay off any worker, after the mining giant went ahead to prune 76 workers.
Kumar had announced that KCM would lay off over 1,500 workers as the mining company was seeking to mechanise its operations.
This announcement prompted President Sata to warn the mining giant not to lay off a single worker or risk having its mining licence revoked.
In response to the question Vice-President Scott said: "The chief executive, Mr Kumar was deported but he has appealed, thus his return matter is being considered by the ministry (home affairs) and by the government. It's very routine, the law says if you are deported, you leave, and you appeal if you want to appeal 'chapwa' 'kwamana' (it's finished)," Vice-President Scott said, sending the House into laughter.
On the pending job losses, Vice-President Scott said there was a committee of 12 people and very highly powered people who were engaged over the matter.
"I am told the ultimate beneficial owner of KCM has been in the country and he has assured us that there will be no job losses, so we are on to this one very hard," he said.
Monze Central UPND member of parliament Jack Mwiimbu asked Vice-President Scott to reconcile this position with home affairs minister Edgar Lungu's statement to the nation that Kumar was never deported but that he left Zambia on his own volition and that the government had no intentions of deporting him unless under compelling circumstances.
Vice-President Scott in response said: "To clarify the situation, Kumar left, he ran, he bolted and he was followed closely behind by the prohibited immigrant status."
And Vice-President Scott told the House that State House was open to any citizen of Zambia.
He was responding to a question by Bwacha PF member of parliament Sydney Mushanga, who wondered why the UPND was making an issue out of Dr Banda's visit to State House to confer with President Sata over national issues.
Mushanga said Dr Banda was under pressure to disclose what he had discussed with the head of state.
Vice-President Scott said: "Certainly as far as any Zambian citizen visiting State House is concerned, if the President invites them or they invite themselves, it's certainly normal to speak to the head of state."
Meanwhile, Lufuma wondered whether it was not a breach of the law for the permanent secretary at the Ministry of Mines to sit on the board of FQML, to which Vice-President Scott responded that the trend was common but the government was reviewing it.
"This trend of wearing two hats is quite common; it's not just the Ministry of Mines. It has become a bit traditional in Zambia that boards contain PSs but this is currently under review," he said.
Lubasenshi Independent member of parliament Patrick Mucheleka wondered what the government was doing to deal with mining companies that were engaging in tax avoidance, and Vice-President Scott assured that measures were being taken to correct the anomaly.
Mafinga MMD member of parliament Catherine Namugala asked if the Malawian government had paid for the fuel that Zambia gave to that country last year, and Vice-President Scott said no payment had been made yet.
Labels: KCM, KISHORE KUMAR, TAX EVASION
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KCM refunds wrongly deducted PAYE
By Misheck Wangwe in Kitwe
Fri 29 Nov. 2013, 14:00 CAT
KONKOLA Copper Mines has refunded all affected employees PAYE deductions that were wrongly effected in the month of October.
Recently, the KCM payroll system was marred with irregularities and salary discrepancies of its mineworkers, with stakeholders and the government blaming the new Systems Application Products-Human Capital Management (SAP-HCM) technology that was introduced by management.
Mineworkers from different Integrated Business Units (IBUs) of KCM complained that they were getting little money as salary, sometimes just half of their usual salaries due to irregularities in the payroll system.
In a memo addressed to all KCM employees, acting vice-president for Human Capital Management, Eve Banda, said the refund was with effect from November 2013 and the balance of Pay As you Earn (PAYE) would no longer be deducted.
"This is to advise that the PAYE deducted under the Code 526D from employees in the month of October 2013 had been refunded to all affected employees...This will be displayed on the deduction side of the statement under the payroll Code 526D-PAYE recovery which would show a negative deduction and negative balance amount signifying total reversal," the memo read in part.
In September, deputy minister of Mines Richard Musukwa said KCM was expected to show seriousness regarding the issue of pay anomalies, as it was a responsibility of the company to demonstrate competence and proficiency in the management of salaries for its employees.
Labels: KCM, PAYE, RICHARD MUSUKWA, TAX EVASION
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Govt to take bold decisions on KCM
By Misheck Wangwe in Kitwe and Henry Sinyangwe in Lusaka
Tue 26 Nov. 2013, 14:01 CAT
COMMENT - How on earth can KCM claim their costs are $7500 per tonne? That is about the market price of copper. They are lying. - MrK
WYLBUR Simuusa says courageous decisions will be made by the government to end the mismanagement of Konkola Copper Mines and protect people's jobs.
And Simuusa says the 10-man team that has been appointed by the government would only highlight the wrongs in the operations of KCM and make recommendations on how to protect jobs, as well as make the company viable again.
Meanwhile the Economics Association of Zambia (EAZ) says there is need to come up with an optimal mineral tax system desirable to both the government and investors.
In an interview yesterday, Simuusa, who is foreign affairs minister, said there was no doubt KCM had been mismanaged by the majority shareholders, Vedanta Resources.
Simuusa, a mining engineer by profession, said it was poor management at KCM which resulted in high operational costs adding that the upper ore body at Nchanga had more reserves of copper that could increase the lifespan of the mine.
"KCM has unnecessarily attracted more costs standing at US$7,500 per tonne, but if the company can reduce the costs to about $3,500 per tonne, production will continue," he said.
Simuusa, who is also PF Nchanga member of parliament, said stakeholders in the mines, including the major shareholders in KCM, Vedanta Resources, needed to acknowledge that every decision over the running of the mine would be made in the interest of Zambians, the workers and their investments.
"I am anticipating some hard decisions to be made for this situation at KCM. We need to protect people's jobs and we have made it clear as government and President Michael Sata said it, no one should be retrenched. We need to find other solutions and we all need to be courageous, explore other means of making KCM viable and we believe that this company would be viable again," Simuusa said.
He said KCM had the most de-motivated workforce because of the announcements of retrenchments and irregularities in the payroll system that had persistently rocked the mining company.
Simuusa said there was no mine that could meet targets with a demotivated workforce.
"Mining is the industry of targets, which requires proper care of the human capital which is the most valued asset of any country," he said.
Simuusa said KCM owed contractors and suppliers huge sums of money, a situation which he said was killing local business.
Meanwhile, Simuusa said the 10-man committee appointed by the government to look at impeding job losses at KCM was expected to do a professional job.
"This committee for me will not be able to solve problems, but at least they will be able to crystallise and show where the problem is so that together, we can sit and find a lasting solution. We don't want our people to suffer and we will not allow that to happen," he said.
Earlier this month, KCM announced plans to lay off over 1,500 workers in the next three years, as it migrates towards automation and mechanisation at Nchanga Underground, a move which displeased President Sata.
And the EAZ has challenged members of the technicalcommittee appointed to help ZRA optimise policing of the mining sector, to beobjective.
EAZ president Isaac Ngoma said the current tax system needed to be relooked at and find an optimal moderate tax that would create a win -win situation, both for the investors as well as for the government.
He said going the route of the windfall tax immediately, was something that was contentious.
"Ultimately, there is need for a study to be done and look at various operational issues of the investors in the mining sector and also look at government's position with regard to the sector. With good analysis, we would be able to come up with an optimal tax which is desirable and acceptable to both parties," he said.
And Ngoma said there was need to ascertain the challenges facing the mining sector.
"We need to ascertain the challenges that the mining industry is facing as well as try and review the working relationship with KCM.It is very important that both parties have a clear understanding of the issues at hand so that there is a harmonious relationship between the government andthe investor," he said.
Ngoma said EAZ hoped that the technical committee would work diligently in a timely manner and come up with solutions to issues that had been of concern.
"If you constitute a committee that is going to do such kind of work, you have to look at people that have diverse skills depending on the nature of the undertaking. Those that have interest, it is important that they declare interest so that they don't compromise the task at hand. You cannot get someone who is maybe a supplier to the mine in question, whose contract has either been terminated or are looking up to something from the same, it will compromise the process," Ngoma said.
He said there was need for an environment where government does not feel that the investors were cheating and investors do not feel that they were being ostracised or coerced by the government.
"The investment must be rewarding to the nation. It is important that whatever is done is done in a professional manner and at the end of the day we come up with a win, win situation," said Ngoma.
Labels: CORRUPTION, KCM, WINDFALL TAX, WYLBUR SIMUUSA
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Vedanta chairman in Zambia over KCM, govt standoff
By Chiwoyu Sinyangwe and Joan Chirwa-Ngoma
Sat 16 Nov. 2013, 14:00 CAT
VEDANTA Resources chairman Anil Agarwa is in the country to help resolve the standoff between its subsidiary Konkola Copper Mines and government.
And former mines minister Dr Kalombo Mwansa says mining companies should be made to pay appropriate taxes to the government.
Meanwhile, Dr Mwansa says allowing mining companies to export copper concentrates without adding value is unacceptable.
Vedanta Resource which is London-listed owns a majority stake in KCM.
On November 2, KCM announced plans to lay off over 1, 500 workers in the next three years as it migrated towards automation and mechanisation at Nchanga Underground.
The move by KCM unnerved President Michael Sata who said embattled chief executive officer Kishore Kumar would be sorted out for attempting to blackmail Zambia.
"If he's threatening us that he wants to lay off people at Konkola Copper Mine let him lay off one person, then we take away the licence from him; that's the best way of laying him off because investment should be for the people," said President Sata on November 5.
"And if that Mr Kumar wants to threaten us, to blackmail us, he can go to hell. We shall sort him out."
Mines minister Christopher Yaluma confirmed that Agarwa arrived in the country yesterday to help the troubled mine.
"Yes, I am supposed to meet him Agarwa this evening," said Yaluma.
And Yaluma said no miner would be retrenched at KCM.
"We had told them that that was non-negotiable and the President made it clear that whoever laid off even a single worker at KCM...and obviously you saw what happened," said Yaluma.
On November 9, Kumar 'voluntarily left' Zambia after home affairs minister Edgar Lungu demanded a meeting with him to discuss his "rhetoric" taunt targeted at President Sata on November 8.
Kumar, who is also chief executive officer for Base Metals Africa, left the country aboard South African Airways.
And Dr Mwansa said Zambia had room to collect enough revenue from the mines through proper taxation.
"We don't get enough from the mining industry. Whatever revenue we can get, we must get it. We must do everything possible to maximise revenue," he said in an interview yesterday.
With an industry that is estimated to be worth around US $10 billion, Dr Mwansa said it was unacceptable for the mines to contribute below US $600,000 (about K3 million) to the treasury in form of taxes.
"On the revenue side, we are very low. Every avenue we can get to increase revenue from the mines should be looked at," he said.
The government recently raised mineral royalty tax on copper from three per cent to six per cent, but shelved plans to re-introduce windfall tax on copper that was suspended by Rupiah Banda's regime.
Dr Mwansa said the country's efforts in the mining industry must be towards value addition, and supported President Sata's statement that mines "should not be allowed to export soil".
Finance minister Alexander Chikwanda on October 4 signed statutory instrument (SI) 89 which allowed mining companies to export copper concentrates tax free.
But President Sata cancelled SI 89, saying mining companies should not be allowed to export copper without adding value.
SI 89, which was to be in force up to September 30, 2014, was to reverse the November 2011 decision of the PF government to impose a 10 per cent export levy on copper concentrates and ores to encourage value addition and to improve accountability in the vast mining sector.
SI 89 has since been replaced with SI 99 to reinstate the 10 per cent export duty on copper concentrates and ores, which Chikwanda briefly abolished after being lobbied by First Quantum Minerals and Lubambe Copper Mines.
"It's not good to export soil, like the President put it. We have to add value… Mining companies can also put resources together to put up a big smelter," he said, and advised the government, mines and mine workers unions to promote dialogue in the industry.
His comments follow KCM's plan to lay off over 1,500 workers as the company seeks to switch to mechanisation.
"If they (mines) have a problem, they should sit down with the government. There is need for government, mines and the unions to find time to sit and exchange ideas. They should not only meet when there is a crisis," said Dr Mwansa, adding that the current government's policies on the mines and job creation were good.
Labels: KCM, STATUTORY INSTRUMENT 89, TAX EVASION, VEDANTA
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Sata a frank, nice person - Shamenda
By Gift Chanda
Wed 13 Nov. 2013, 14:01 CAT
FACKSON Shamenda says President Michael Sata is frank, kind and a nice leader. Shamenda, who is labour minister, yesterday said investors should not misunderstand President Sata's frankness to mean he is scaring them away.
Recently, Konkola Copper Mines announced it would lay off more than 1,500 workers because the company wanted to mechanise its operations. But President Sata ordered KCM not to lay off workers. The government called for a meeting with KCM officials.
However, in the meeting, Shamenda said KCM chief executive Kishore Kumar dismissed President Sata's statement as rhetoric.
The government later called for a meeting with Kumar again to discuss his statement.
However, Kumar left the country, forcing the government to declare him a prohibited immigrant.
Later, President Sata told The Post that Kumar had demeaned Zambians.
And speaking in Lusaka after Chibuluma Mines Plc and the Mine Workers' Union agreed to a 12 per cent salary increment for workers, commencing next year, Shamenda assured mining investors in the country that their investments were safe.
He said the government was not interested in meddling in the running of the mines.
"... we just want you to play to the rules of the game," Shamenda said. "Some people misunderstand the frankness of our President as if he scares people. He is a very kind and nice person. I have worked with a number of presidents, but none beats him.... You can't just wake up and say you are doing this. There must be signs."
Shamenda said President Sata was a nice and listening person.
"He President Sata is a very frank person, if you have got ideas, 'ifyamano tabakokola ukumfwa'. He doesn't hesitate to listen to sensible ideas, but if you are arrogant and you try to play tricks, then you can never be a good friend of our President," he added.
He said while the government would strive to create a conducive environment for investment, the interest of the people would come first.
"A conducive environment for investment is not necessary where you want the government to be leaking the boots of an investor," Shamenda said.
"In fact, in such cases where this happens, it is the leaders who actually benefit. It is the leaders who are bribed, but this government does not tolerate such kind of arrangement. We consider the interest of the people who put us into power first."
And the Mine workers Union of Zambia says mining investors should avoid using recent policy changes on fuel subsidy, monitoring of foreign exchange, as well as the low copper price not to award decent salary increments to their workers.
MUZ general secretary David Chewe said mining investors should not give excuses of the recent policy shifts to avoid paying decent salaries to their workers.
"They should emulate Chibuluma with whom we concluded negotiations within record two days. They did not give excuses of the low copper prices or the fuel subsidy removal," Chewe said.
And Chibuluma Mines general manager Jackson Sikamo said the fact that the negations were concluded in a record two days was not a sign of weakness by either parties involved in the process.
"It is a reflection of the importance attached to the welfare of our employees and the appreciation by the union of the challenges we are facing," he said.
He said the mining firm was having challenges in securing financing for the Chifupu project which would extend the Chibuluma mine project beyond 2021 and secure over 750 direct and indirect jobs.
Sikamo said the funds for the Chifupu project, which requires in excess of US$23 million, were ordinarily supposed to be sourced from external financiers, but financiers are not willing to provide the company !the necessary financing because of the 2012 tax changes on capital allowance.
Labels: FACKSON SHAMENDA, KCM, MICHAEL SATA
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Kumar says he'll return on Nov 28
By Chiwoyu Sinyangwe
Tue 12 Nov. 2013, 14:00 CAT
KCM chief executive officer Kishor Kumar says he will return to Zambia on November 28. And mines minister Christopher Yaluma has revealed that Konkola Copper Mines has not been fulfilling its tax obligations to the Zambia Revenue Authority.
In an internal memo to workers in the company, Kumar said he had flown to attend to Zinc International business in South Africa and would return at the end of this month.
"During this period, Mr David Kaunda who is vice-president human capital management will act in the position of chief executive officer, and all decisions will be jointly taken with the EXCO members," Kumar stated in the November 8 memo.
"Please accord him all the due cooperation during this period."
Kumar, who is currently chief executive officer for Zinc International, functions as chief executive for Base Metals (Africa), which includes control of KCM operations and copper mines of Tasmania (CMT) in Australia.
Kumar "voluntarily exited" the country last Thursday after the government pursued him over his remarks that President Michael Sata was full of political rhetoric.
This was after President Sata directed that KCM halts the planned retrenchment of over 1,500 workers as the company planned to migrate to mechanization and automation to cut down on labour costs at one of the most labour-intensive mines in the country.
And in a separate interview, Yaluma said the government would constitute a team of experts from ZRA, Ministry of Finance and Ministry of Mines to probe KCM which was struggling.
He said KCM was currently failing to meet its production targets as well as tax obligations to ZRA.
"Based on the discussion with KCM and ourselves, this team we will constitute is for specific things we want to find out and also KCM, they want to prove to us something that they have been telling us," said Yaluma.
"It's totally agreed by both parties and that is what we want to dwell on.
They have not been honouring or fulfilling their targets and they lack capacity to pay. They are in arrears with ZRA. They are in operations but they are not performing well."
Labels: CHRISTOPHER YALUMA, DAVID KAUNDA, KCM, KISHOR KUMAR, POLLUTION, TAX EVASION, ZRA
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KCM has insulted govt - Musukwa
By Misheck Wangwe in Kitwe
Mon 11 Nov. 2013, 14:01 CAT
MINES deputy minister Richard Musukwa says KCM management has persistently insulted the intelligence of the government by giving flimsy and inconsistent reasons over its intentions of mass layoffs.
Meanwhile, ZEMA is investigating KCM and other mining houses on latest reports of pollution of the Kafue River, the Mwambashi stream and other sources of water supply on the Copperbelt.
The government has since announced plans to constitute a team of experts to investigate KCM's operations.
In an interview in Kitwe, Musukwa said the investors in KCM had seriously disappointed the government with their behaviour and the manner in which they wanted to blackmail the government through maneuvers to retrench over 1,500people.
"They gave reasons for their latest intentions to layoff our people as automation, mechanisation and dwindling grades of the ore. The dwindling grades of the ore are a common scenario in a mining operation and it cuts across all mining companies. Any best mining operation of a world class nature like as KCM as it claimed, should be able to plan and organise operations at the lowest price and the lowest grade of the metal and that's how the copper business is managed because it is very unpredictable," Musukwa said.
"These reasons that KCM is advancing today, in case they have forgotten, are different from those they gave five months ago when they wanted to retrench 2,000 people."
He said five months ago, KCM did not mention anything to do with its plans to take the route of automation, mechanisation and challenges of dwindling grades but rather gave a set of different reasons such as fluctuating copper prices and challenges to appreciate various tax incentives that the government had put in place.
Musukwa said KCM would not be allowed to manipulate Zambians over their own mineral resources.
"People have not been very productive recently because this KCM have brought fear that they will lose jobs. People are operating as if they have no jobs, their morale is dampened. Many Zambians world over are known to be hardworking and they account for their presence at the place of work. Our wish has been that KCM must drive our people to the level of production of world class nature," Musukwa said.
Meanwhile,deputy minister of labour Rayford Mbulu said the government was managed on the premise of laws and it would not allow people to be condemned to misery by KCM and its intentions of mass layoffs.
Mbulu said KCM disrespected the government from the time it announced its intentions to cut jobs of about 1,529 mineworkers through the media without even communicating to the state.
"This government is premised on laws and these laws must be respected. What we have gotten from KCM is embarrassing to say the least. They (KCM management) must know that the employment and labour relations Act Cap 268of the laws must be respected to the latter.
And KCM breached this when they chose to go to the media before they could even engage government," said Mbulu."Acts of intransigency from KCM will never be tolerated."
KCM chief executive officer Kishor Kumar announced at a press briefing in Kitwe a week ago the company's intentions to lay off 1,529 mineworkers.
Kumar cited dwindling copper ore and the company's new route of mechanization and automation as major reasons for the layoffs.
President Michael Sata, however, warned Kumar that he would be sorted out if he attempted to fire even a single employee and that KCM's operating license would be revoked if the mining company wanted to blackmail government with mass layoffs following the decision to stop the export of copper concentrates.
On Wednesday, it was learnt that KCM had in fact terminated employment of about 76 employees, a situation that angered government.
Labour minister Fackson Shamenda later told journalists in Lusaka that government was extremely disappointed and annoyed with Kumar who had dismissed President Sata's warning that the government would revoke the company's license if it fired even one worker, as mere rhetoric.
On Friday, Kumar left the country in unclear circumstances before he could be taken to task by the government over his statement against President Sata's directive.
Vedanta Resources, the majority shareholders in KCM, have since appointed a KCM vice-president for Human Capital Management David Kaunda to act as chief executive officer in the absence of Kumar.
And in an interview yesterday, Zambia Environmental Management Agency northern region manager Patson Zulu said the matter was being seriously investigated and KCM had already been written to.
Minister of Local Government and Housing Emerine Kabanshi on Thursday warned Konkola Copper Mines over its alleged pollution of the Kafue River, saying it had resulted into the closure of two water treatment plants for Nkana Water and Sewerage Company.
"We have recorded such cases and I can say it's not only KCM, we are also investigating other mining companies, the polluters of the surface water bodies on the Copperbelt. Apparently it's not just the Kafue River but also other streams critical to human life. We have identified a number of firms that will be summoned over this pollution and we are meeting them because this is a matter of urgency and it's very serious," Zulu said.
He warned that mining companies that were culprits of the pollution would be taken to court and risked having their plants shut down for breaking the law.
Zulu said over KCM and allegations of pollution, ZEMA was closely working with the Department of Water Affairs, National Water and Sanitation Council as well as Nkana Water and Sewerage Company to establish facts and the extent of pollution.
"For KCM, we will not give more details because the matter is being investigated and we will be pre-empting the minister's statement. It's only fair that we leave it to the minister and details will be availed to you at a later stage," Zulu said.
At a press briefing in Lusaka last week, Kabanshi warned KCM that the government would deal with it firmly if it fails to stop the excessive pollution levels which had affected Mwambashi dam in Kalulushi and Mutipa stream in Chingola on the Copperbelt Province.
Kabanshi said the government will be left with no option but to shut down KCM's operations at their tailings leach plant until the company puts up remedial measures to protect people's lives.
She further said the government would not allow a situation where mining companies continue to deliberately fail to meet environmental regulations.
Kabanshi, who on Saturday visited NWSC in Kitwe, directed KCM to take its environmental protection obligations seriously and stop discharging mining effluents carelessly.
Labels: DAVID KAUNDA, FDI, KCM, RICHARD MUSUKWA, TAX EVASION
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KCM annoys govt
By Kombe Chimpinde-Mataka
Fri 08 Nov. 2013, 14:01 CAT
KONKOLA Copper Mines has annoyed the government over the response its chief executive officer Kishor Kumar gave in reference to President Michael Sata's warning against firing workers from the mine.
Speaking to journalists shortly after a meeting organised by the International Council on Mining and Metals (ICMM) in Lusaka, labour minister Fackson Shamenda disclosed yesterday that Kumar had dismissed President Sata's warning that the government would revoke the company's licence if it fired even one worker, as mere rhetoric.
He disclosed that he had called for a meeting with KCM after the presidential order but was disappointed with Kumar's response.
"I have just heard about it today (laying off 76 workers from KCM). As you are aware the President directed me to convey government's position on the matter which I did but I am very disappointed and I would like to say I am very disappointed with Kumar for describing President Sata's threats as rhetoric in one of the meetings. Surely how can he describe the President's threat as rhetoric?" asked Shamenda.
Attempts to talk to Kumar to clarify Shamenda's statement failed as his line went unanswered.
Further attempts were made to contact KCM spokesperson Joy Sata who was asked to verify Kumar's statement but she declined to comment and said she wanted to read the story first.
Shamenda said he was disappointed by KCM's decision to lay off over 70 workers against President Sata's advice.
"I have summoned the (mine workers') unions and KCM management at a meeting at 18:00 hours to discuss the way forward. We (government) are not going to tolerate any form of blackmail," Shamenda said.
And Shamenda said the directive for him to convene a meeting with KCM and unions last evening was sanctioned by President Sata after his (Shamenda) request.
"As at last night around 20:00 hours we were still having meetings where these people (KCM) had denied allegations that they had gone ahead with their decision to lay off some workers, so I am disappointed to hear that some workers have been laid off. This is the arrogance that we are talking about," Shamenda said.
"We know KCM is in serious financial needs and we are not going to allow them to leave a shell."
On Monday, shortly before he addressed a Cabinet meeting at State House, President Sata threatened to revoke KCM's licence if it laid off even one worker following the firm's announcement to relieve 1,529 workers with the view of moving on to further mechanising its operations.
KCM had by September issued letters of termination of employment to selected workers.
Some of the affected workers claimed that the letters had been backdated.
And former vice-president and Chingola member of parliament Enoch Kavindele said KCM had plans to leave and was looking for excuses for its exit.
"The situation in Chingola where I have been member of parliament for 18 years is bad. The future is bleak. It's like they (KCM) have a lot of problems and are just looking for excuses for someone to say, 'just go'," said Kavindele.
ADD president Charles Milupi said Zambia must cease to be surrogates of the mining firms.
Milupi said it was unfortunate Zambians had chosen to be surrogates of the mining sector.
"This is why we have been continuously telling this government if we had gotten enough dividends at the time when copper prices were very high to use in diversifying this economy, creating other employment opportunities such that if the mining companies lay off people, there would be other opportunities for them but because we have chosen to be surrogates to the mining sector, we have become desperate to maintain employment in the mining companies," Milupi said.
"KCM is saying they need to mechanise, they are saying that productivity, one worker producing an average of 80 tonnes of copper per annum, when the world average is 100 tonnes. If you look at these figures, it shows one is running a very big operation. My argument is that they cannot just say, 'we'll lay off labour'. They are other ways that they could have used such as increasing productivity. They have to make us understand why the production is so high."
Labels: CHARLES MILUPI, FACKSON SHAMENDA, JOY SATA, KCM, KISHOR KUMAR
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Chitala urges opposition to support Sata on KCM
By Allan Mulenga, Noel Iyombwa and Abigail Chaponda in Ndola
Thu 07 Nov. 2013, 14:01 CAT
MORE than 70 workers have received letters of termination of employment from Konkola Copper Mines (KCM). On Monday, President Michael Sata warned KCM not to lay off workers and warned that he would revoke KCM's mining licence if the mine dared to lay off even one miner.
According to letters of termination to some employees at Konkola shaft number one that had been sent earlier before President Sata's warning, made available to The Post, and signed by Eve Banda KCM manager for human capital and management(HCM) at Konkola, the mine advised that the affected employees (76 in total) should see respective HCM business partner for exit formalities.
One of the letters dated September 19, 2013 and addressed to Kazarous Kanengoki mine number 2004348 stated that either party may terminate the agreement by giving the other party 30 days written notice.
"Reference is made to the termination of contract clause in the offer of fixed term contract of employment with KCM which is either party may terminate this agreement by giving the other party 30 days written notice. Accordingly we wish to advise that your contract of employment will be terminated effective October 19, 2013.Your last working shift will therefore be on the same date. In accordance with the terms and conditions of your contract, terminal benefits will be calculated as follows; wages worked for, gratuity at 11 per cent, accrued leave pay and Christmas bonus," one the several the letters given to one of the workers.
President Sata had said KCM chief executive officer Kishor Kumar would be sorted out if he wanted to blackmail government.
Speaking ahead of a Cabinet meeting, President Sata said KCM wanted to blackmail the government after it stopped the company exporting copper concentrates.
Kumar last Friday announced plans to carry out outplacement of 1,529 employees as the mining giant pursued a mechanisation programme for all its operations.
And Dr Mbita Chitala has advised opposition political parties leaders to avoid politicising President Sata's stance on the proposed layoff of over 1,500 workers at Konkola Copper Mines.
So far, key opposition leaders such as MMD's Nevers Mumba, National Movement for Progress' Ngandu Magande and Alliance for Better Zambia's Frank Bwalya have spoken on KCM's intention to cut over 1,500 jobs at Nchanga underground. Others like UPND have been quiet.
Mumba urged KCM to reduce their rhetoric in the media and seek for talks with the government.
Magande said President Sata's warning to KCM to revoke the mining licence was a wake up call to other mining companies.
Bwalya said the threat to revoke the licence could create instability in the mining industry.
And in an interview yesterday, Dr Chitala, who is Zambia Research Foundation director, urged politicians to come together and safeguard the interests of the nation.
"This is not partisan at all. It is the national issue where all political parties should agree on how we could use what God gave us to end our poverty and underdevelopment. This is where all the politicians unite until they defeat the enemy and continue with politics after that is done," he said.
"It will be sad and unforgivable that we who are in charge of our country, we leave nothing other than environmentally hazardous holes, where copper have been taken away to other countries which are smarter than us."
Dr Chitala advised the government through ZCCM Investment Holdings, to increase shareholding capacities in all mining firms.
"These development agreements these mining firms were supposed to offload to list on the stock exchange to enable Zambians to buy, none of them have done that. By this time we should have more than 30 per cent in shares all the mines, but there is nothing like that. We need to increase our ownership of the mines, but nothing is happening. Right now the shares vary, three per cent, some are 20 per cent, some five per cent, some 10 per cent and so on," he said.
"It is not much. We need to increase our shareholding in these companies and also allow shares as we agreed to be quoted on the stock exchange. My suggestion will be the minimum of 30 per cent shares from every mine should be floated so that our middle class can also be participating in development porgrammes."
Dr Chitala said the government should start buying back the shares to get controlling interests in the industry.
"We have a challenge as a country now that we must adopt programmes anchored on nationalism where we can use these minerals to contribute to economic development of Zambia. The time to advance nationalism has come again. We have ZCCM IH as the government which has shares in all these mining companies," he said.
"They must start buying back the shares so that we are able to get controlling interests in the industry. Furthermore, they must use their powers as directors of these mines to safeguard the interests of our country. The minister of finance has got a golden share, we have never heard it being used to safeguard our interests as a country."
Dr Chitala said the government should ensure that Zambians benefit from the availability of natural resources.
"Our country is blessed with copper and cobalt where we get more than 80 per cent of export earnings. And in the same way Angola has oil, Arab nations have oil, Botswana has diamond, even us God gave us copper and cobalt and we should not even be sorry about it. We should use these resources to tackle poverty and underdevelopment. If we do not use these resources wisely, we shall remain poor. It is only copper that can enable Zambia quickly accumulate surpluses and allows us as a country to fight poverty and underdevelopment," said Dr Chitala.
"Copper is a waste asset, meaning within 60 years it will be gone and the multi-national corporations mining our copper will go back to their countries, leaving us with environmentally hazardous holes on the ground to our children."
Meanwhile, Australian Ambassador to Zambia Matthew Neuhaus has advised politicians in Zambia not to undermine the mining industry because doing so may not be good for the economic development of the nation.
During a visit to Northern Technical College (NORTEC) in Ndola on Wednesday, Ambassador Neuhaus said undermining the mining industry is not good for Zambians and institutions like NORTEC which produce the skills absorbed by the mining industry.
"There is a populous of some sort of politicians who want to undermine the mining industry sector, that is not good for Zambia and the people of Zambia and institutions like yourself (NORTEC) who produce the skills for Zambia and growing prosperity of Zambia," he said.
Ambassador Neuhaus however, described the economic outlook for Zambia as fantastic saying his country would stand by Zambia in its continued development.
"As long as Zambia continues to take the path it has taken over the decade, it will be indeed the star of Africa. Your GDP is two times more than Zimbabwe, your economic growth is fantastic, obviously, it's important that those policies continue," he said.
Ambassador Neuhaus said he was impressed with First Quantum Minerals (FQM) for adding value to its cathodes and that the mine was doing well in the area of value addition technologies.
"I was impressed when I went to Kansanshi mine to see the value addition that they have done to the cathodes. I must say that it is short sighted of those who object to exporting some of the existing copper until the smelter is there, you need cash flows to be able to develop further, so if your aim is value addition, you have to build from where you are and then encourage the technology that is there," he said.
He said FQM was able to do well because the mine was always looking at technical things.
"So I think there has been some ill-informed debate in some of the press of late here, but we will stand by Zambia for continuing development of the country and we want to help them. We want Zambia to be running the industries; it should be Zambian entrepreneurs into the future who will be putting together the capital," he said.
Ambassador Neuhaus further said it was important to maintain investor friendly approaches because it was Zambians who are benefiting.
He, however, said the new Australian government knows that a lot of development assistance has been wasted in the past and that the country wanted to focus on helping Zambia in areas like Aid for Trade.
Ambassador Neuhaus said Australia's focus was not on trade zones which get special privileges and deny the rest of the country development, adding that the whole country should be a trade zone.
He said trade zones were an excuse for one or two people to make money for themselves adding that Australia did not need the concept of trade zones that the country had been hearing about.
"Our focus is on supporting institutions like NORTEC and supporting companies that are building towns in remote areas like what the mines are doing and spreading the wealth throughout the country; we don't want to see it (wealth) sitting in Lusaka, we want to see it across the country, we want to see those areas that are producing the Copper and other minerals to diversify too; we want to see those areas benefiting as well," said Ambassador Neuhaus.
Labels: EVE BANDA, KCM, MBITA CHITALA, MINING, TAX EVASION
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Jerabos attack nchanga miners
By Darious Kapembwa in Kitwe
Thu 07 Nov. 2013, 14:00 CAT
ILLEGAL miners popularly known as 'Jerabos' on Tuesday attacked miners working at Konkola Copper Mines Nchanga Open Pit Cut II leaving five seriously injured.
Two of the KCM employees and a security officer belonging to Magnum Security Company are admitted to Nchanga South hospital while two were treated and discharged.
KCM public relations manager Joy Sata disclosed in a statement that the 'Jerabos' accused the miners of having buried a 25 kilogramme bag they used to carry the stolen copper ore.
She named those admitted to the hospital as Crispin Bwali 35, a RTV operator, Lubinda Liyungu 52, a Dozer operator and Amos Siame 26, a security guard, while Anthony Chisi 29, and Victor Musonda 29 were the ones that were discharged.
"In the first incident, four miners who were part of the shift of seven employees moving an electric shovel from the pit to the mine workshop, sustained injuries after 10 illegal miners, who were in the company of 20 others, armed with stones and bricks attacked them at 07:30 hours," Sata stated.
She stated that in the second incident, the security guard who was manning the pit was attacked at 11:00 hours.
"The illegal miners, also allegedly offered K150 as inducement for them to be allowed to cut a 3.5 kv cable and when the miners refused, the illegal miners started hurling insults at them. Upon sensing danger, one of the miners tried to call security and it was at this point that the illegal miners got into rage and attacked the four while three managed to escape," she stated.
Sata lamented that it was no longer safe for miners to go to work and that security had been heightened within and around the pits to ensure safety of miners.
Labels: JERABOS, KCM, MINING
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KCM seek to meet Sata
By Staff Reporters
Wed 06 Nov. 2013, 14:01 CAT
KONKOLA Copper Mines (KCM) is seeking to meet President Michael Sata to explain it's plans to cut over 1,500 jobs at Nchanga underground. And Ngandu Magande says President Sata's warning to KCM to revoke the mining licence is a wake up call to other mining companies. Meanwhile, MMD president Nevers Mumba says there is no leader that will want to see people get on the streets without jobs.
In an interview, Joy Sata, KCM corporate affairs manager, said the firm had fully read President Sata's statement and was currently seeking an appointment to explain its position on the matter.
"Our position is that we have read the Presidents' statement and we shall endeavour to engage him over this matter," Sata said in an interview.
"For now, I am not sure we can say anything more than that and that remains our position for now."
And commenting on President Sata's statement that KCM was blackmailing the government, Magande said President Sata's statement might have been as a result of lack of cohesion and consultation in the Ministry of Mines.
"It's only KCM who have said this and other mines could be doing the same way. Let the mines minister listen to KCM if there is indeed need to lay off people or employing them elsewhere. That's where the government comes in and asks other mines to take them on. That's the role of government," Magande said.
Magande said the government should continue to dialogue with KCM.
He said the director of mines and the minister should have adequately informed President Sata on what was obtaining on the ground.
Magande said there was no way mining companies would avoid new technologies in their operations.
"On purely technical level, all industries' technology will always be there whether we like it or not. It's there to help us to do business easier and cheaper," Magande said.
And Mumba urged KCM to reduce their rhetoric in the media and seek for talks with the government.
"There is no leader that is going to want to see people disinfranchised and get on the streets without jobs. When KCM finds itself in this position, I think they should reduce their rhetoric in the media and seek urgently for an opportunity to talk with government and be able to put on the table their challenge and reach an agreement of some sort. They should meet with the unions in the spirit of explaining to them where they are. And out of that type of consensus, I think the result is going to be favourable to all parties involved," Mumba said.
"...I think they should be level headed, this is what is involved in investment, there are ups and downs. Sometimes you have to give a little in order to gain later."
Mumba, however, said the position that the government had taken was wrong saying confrontational methods were not the best way of resolving industrial matters.
Mumba said the government must understand that Zambia was a private sector driven economy and as such the government should engage the mining owners into dialogue and find a win-win solution.
"This is also for them to continue paying taxes to our government. We do not agree with this confrontational shouting from an anthill, either from State House or from the Ministry of Finance demanding that we will revoke your licence unless you keep the people on the jobs. It is not as simple as that, I think it is government's responsibility to push for dialogue. This is not the first time this is happening in Zambia. Under the MMD we had a situation where the mines wanted to lay off workers because the copper prices went down, but I do not remember it being done through arrogance or using political power to shout at the investors," he said.
Mumba said what worked for the MMD was dialogue and engagement with the private sector.
He said the statements from President Sata that KCM should 'go to hell', should never be made public.
"If he wants to make those statements, he can make them under the cover of the boardroom where the government engages private sector. Unless the talks break down, there is a dispute then may be out of responsibility to inform the nation, then they can make such statements," he said.
Alliance for Better Zambia president Frank Bwalya said President Sata should adopt a better approach in dealing with KCM.
Bwalya said the threat to revoke the licence could create instability in the mining industry.
"We do as a party condemn the attempt by KCM to lay off people because it is not justified. This is a very serious issue concerning an investor that employs a lot of people in our country and I think that the President could've avoided making such a statement to revoke their licence. What he should've done is assign people who are already working in government such as the responsible minister Mines, Minister of Labour and a few other government officials to engage KCM and find a better solution than just threatening to revoke," said Bwalya .
He appealed to the mining firm to respond favourably to the threat made by the President.
"The mining companies operating in the country and all investors have to understand that the President is carrying the lives of people on his shoulders and that he has citizens to protect. They should not be scared; they should respond favourably to the threat and do the right thing. We need a win-win situation," said Bwalya.
And Mineworkers Union of Zambia (MUZ) president Nkole Chishimba said in an interview that the threat was 100 per cent justified and was a 'welcome move' by the President.
"The company is not cooperating with any other stakeholders. When they wanted to retrench 2,000 people, we intervened as a union, the government also came in, and though they appeared to have stopped, they started scheming other things like tampering with conditions of service. All those things put together, KCM is not appearing to have any meaningful dialogue with anyone. He the President is 100 per cent justified, because that is what we were also asking him to do. There must be a rationale behind the President having said that threat to revoke. If we say what are the implications, then it is like we are very hesitant and we are allowing KCM to continue the impunities in which they are doing things'' said Chishimba.
Meanwhile, KCM has sued the Zambia Revenue Authority following its June 19 tax audit-triggered decision to charge and levy Valued Added Tax against the mining giant's export sales for the period January 2011 to March 2013 amounting to over K3.2 billion.
And Konkola Copper Mines Plc has further sued the Zambia Revenue Authority over its October 7 decision purporting to unilaterally standard-rate the mining firm's sales contained in its Valued Added Tax return for the months of July, August 2013 and subsequent months.
In its originating notice of motion filed in the Lusaka High Court principal registry on October 31, Konkola Copper Mines Plc KCM's application is for an order of certiorari, mandamus, prohibition and declarations challenging the ZRA's decisions to arbitrarily apply Value Added Tax (VAT) at the standard rate of 16 per cent on its export sales of copper cathodes instead of applying the zero per cent rate for export sales as provided for by the Laws of Zambia.
KCM also wants the High Court to quash both decisions which it has attributed to the ZRA Commissioner General Berlin Msiska and that the court should also compel ZRA to accept the evidence of proof of export documents availed to it by KCM and further restrain it from enforcing the provisions of Rule 18 of the Value Added Tax General Rules, Gazette Notice Number 191 of 1995.
KCM's desired order of prohibition seeks another restraint on the ZRA against enforcing an amended Value Added Tax General Rules as published in the Gazette Notice number 26 of 2013 of January 11, insofar as it purports to provide that it is a requirement that a certificate of importation into the country of destination is a condition precedent to prove export of goods for zero-rating purpose.
In KCM's affidavit in support of an ex-parte summons for leave to apply for judicial review and signed by its Chingola-based business controller Joel Chitambala, the Vedanta Resources-owned mining company described itself as a tax-compliant mining concern carrying on major mining operations at Nchanga, Konkola, Nampundwe and Nkana.
"On the 9th day of April, 2013, the applicant received a letter from the respondent dated the 15th day of March, 2013 informing them that they intended to undertake a specialised Valued Added Tax audit with respect to export sales," Chitambala stated. "On the 7th day of June, 2013, the respondent authored a letter addressed to the applicant informing them that their audit had revealed that the applicant had not complied with the provisions of Rule 18 of the Value Added Tax General Regulations Amendment Rules, 2013."
Chitambala outlined that according to the ZRA's findings, KCM failed to provide import documents bearing certificate of importation into the country of destination and receiving payments for exports through a foreign bank account based in the United Kingdom and not in a bank account based in Zambia.
"On the 10th day of June, 2013, the applicant responded to the respondent's purported audit findings," Chitambala submitted. "To the applicant's surprise, the respondent on the 7th day of October, 2013, proceeded to issue a global letter stating that the applicant's Valued Added Tax returns for the month of July, August 2013 and subsequent months would be adjusted to standard rate the export sales unless proof of export was availed to the respondent."
Chitambala described the decision by ZRA as an illegality, impossibility and unreasonable in the sense that KCM had evidence of proof of export beyond shadow of doubt.
"The applicant produces and sells various copper products. That approximately 95 per cent of the total copper produced by the applicant is exported to international markets, while the remaining five per cent is sold locally to Zambia Metal Fabricators Limited," the affidavit read.
Chitambala argued that these international metal traders were actually international middlemen that purchase these products from KCM for the purpose of reselling to the final consumer and in accordance with international norms and trade practices.
"In the circumstances, it is impossible to expect the applicant to be aware of the final destination of the copper products and as such the applicant cannot be expected to be in a position to render a certificate of importation into the country of destination," Chitambala stated.
"Once the international metal traders have sold the copper products on high seas to third parties, who remain undisclosed to the applicant the ultimate final destination of the copper products changes."
KCM has further described the ZRA's decision against it as baffling in the midst of the evidence availed to it and if the assessment amounting to K3,243,393,362.94 was sustained and the decision to standard-rate future export sales was also sustained, it would seriously affect the operations of the mining firm and result in irreparable damage.
"The applicant's financial situation is already strained by the fallen copper prices," Chitambala stated. "The Value Added Tax being demanded by the Applicant forms a significant portion of the applicant's working capital used to pay critical suppliers, service providers and employees."
KCM are being represented by Eric Silwamba, Jalasi and Linyama Legal Practitioners of Lusaka.
Labels: JOY SATA, KCM, MICHAEL SATA, NG'ANDU MAGANDE, TAX EVASION
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(LUSAKATIMES) Mineworkers Union of Zambia wants KCM mining license revoked
Time Posted: November 5, 2013 7:08 am
THE Mineworkers Union of Zambia (MUZ) has called on Government to find another equity partner for Konkola Copper Mines (KCM)’s mining operations in the country.
MUZ president Nkole Chishimba said Government should go ahead and revoke the mining license for KCM and with or without the laying off of workers by the mining-giant.
He said this was in view of the unclear roadmap by KCM management which had adopted tactics of blackmailing government.
Mr Chishimba who was reacting to President Michael Sata’s call on KCM not to go ahead with its intention of downsizing labour said the announcement by the Head of State to revoke the mining license should the company lay off a single employee was welcome.
“We are thankful that the president has taken that move of considering revoking KCM’s mining license should the company downsize labour.
“We welcome that move and in fact, Government must still consider our call of finding another equity partner for KCM and this is because of unclear roadmap by the company,” Mr Chishimba said.
The union leader said from the way KCM had been conducting itself in the recent past and cited earlier attempts by KCM in June this year to lay off 2000 miners, it was clear that the company’s operations in the country had ceased to be certain.
Mr Chishimba said it was MUZ’s fear that if blocked from executing its intended action of laying off workers, KCM would only end up subjecting employees to poor conditions of service.
“This is why we are saying Government must take keen interest in the operations of KCM by finding another equity partner for that mine,” Mr Chishimba said.
Labels: KCM, MUZ, NATIONALISATION, STATUTORY INSTRUMENT 89, TAX EVASION
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KCM layoffs
By Editor
Tue 05 Nov. 2013, 14:00 CAT
Last week, Konkola Copper Mines announced plans to retrench over 1,500 employees as the mining company pursues a mechanisation programme for all its operations. All this is said to be aimed at increasing productivity and reducing costs, and thus increasing profits.
The government's reaction has been sharp. President Michael Sata feels this is a threat, blackmail and he has told Konkola Copper Mines that they can go to hell, they will sort them out.
And the Minister of Mines, Christopher Yaluma, was also categorical:
"Government will not allow Konkola Copper Mines to lay off more than 1,500 miners because solutions can be found to any problems faced by the mining company."
This reaction and disappointment is understandable. The mining corporations promise to create a lot of jobs when they are seeking mining licences. But they never actually fulfill their promises on this score. They create fewer jobs than they promise and they create jobs of a much lower quality and remuneration.
It is understandable why the government may be reacting so angrily to Konkola Copper Mines' plans to lay off over 1,500 workers because this is a company that has been boasting of employing so many people to justify why the government should give them this or that concession or incentive. They get what they want and after that, they want to renege on their promises. Who can easily accept this?
Clearly, these are distressing difficulties for a government and a people that are desperately in need of jobs, that had pinned their hopes for jobs on the mines.
These Konkola Copper Mines layoffs are inevitably a bitter pill to swallow. But if we are to face up to the realities, we have first to become aware of them.
The mining industry will never again employ as many people as it used to do in the 1920s, 1930s, 1940s, 1950s up to the 1980s or 1990s. The numbers of people employed by the mines will continue to decline because of a technology revolution that is fast replacing human beings with machines in virtually every sector and industry in the global economy.
Already, thousands of workers have been permanently eliminated from the economic process, and whole work categories and job assignments have shrunk, been restructured, or have disappeared.
This is not only happening in the mines; it is happening in agriculture and manufacturing, where the numbers of farm workers and factory workers are declining.
Mining industries, like other industries, have been undergoing a steady process of technology displacement for many decades. With the use of advanced computer technology, faster excavation and transportation equipment, improved blasting technologies, and new processing methods, mining companies have been able to increase output at an average annual rate of three per cent since 1970.
While the industrial worker is being phased out of the economic process, many economists and elected officials continue to hold out hope that the service sector and white-collar work will be able to absorb the unemployed labourers in search of work. Their hopes are likely to be dashed because automation and re-engineering are already replacing human labour across a wide swath of service-related fields. The new "thinking machines" are capable of performing many of the mental tasks now performed by humans, and at greater speeds.
In 'The Future Impact of Automation on Workers', authors Wassily Leontief and Faye Duchin described the improved efficiency of automated tellers: "A human teller can handle up to 200 transactions a day, works 30 hours a week, gets a salary anywhere from US$8,000 to US$20,000 a year plus fringe benefits, gets coffee breaks, a vacation and sick time… In contrast, an automated teller can handle 2,000 transactions a day, works 168 hours a week, costs about US$22,000 a year to run, and doesn't take coffee breaks or vacations."
The transformation of the traditional office from a paper-handling to an electronic-processing operation has greatly increased the productivity of business and eliminated millions of clerical workers and will continue to do so at an accelerated rate. Secretaries were among the first casualties of the electronic office revolution. The numbers of secretaries has steadily declined as personal computers, electronic mail, and fax machines replace manual typewriters, paper files and routine correspondence. Receptionists are also being reduced in number as new automated computer systems can answer calls, record messages, and even hunt down the party being phoned.
The intelligent machine is steadily moving up the office hierarchy, subsuming not only routine clerical tasks but even work traditionally performed by management.
Clearly, the successful application of mechanisation typically results in fewer people being employed directly in support of the mining process. This will not be something easy for a government and a labour movement that wants to see more people employed by the mines. If not handled well, conflict is likely to arise. This is so because in addition to losses of jobs, mechanisation can also be seen as having a negative impact on the communities within which mines operate.
But the problem does not end here. A further significant impact of mechanisation is that of the design and structure of the work practices in mines. Changing technology leads to changes not only in the number of people employed directly in support of the production process, but also in their required skills and in the manner that work teams operate internally and interact with other teams and mine management.
So much hope was placed in mining investors employing many people. But the reality is starting to dash those hopes.
We share the bitter feeling of impotence that our political and labour leaders have in the face of such problems and the concern of all statesmen for the political instability to which these problems may give rise.
So gloomy are the realities and the prospects for the future viewed as a whole that they could generate pessimism and discouragement if we were not sure of aims.
We do not have, nor do we think anyone has, magic remedies for such difficult, complex and apparently insoluble problems. History shows, however, that no problem has ever been solved until it has become a tangible reality of which everyone is aware. But no matter how enormous the difficulties, no matter how complex the task, there can be no room for pessimism. This would be to renounce all hope and resign ourselves to the final defeat.
We have no alternative but to struggle, trusting in the great moral and intellectual capacity of the human race and in its instinct for self-preservation, if we wish to harbour any hope for survival.
Only with a tremendous effort and the moral and intellectual support of all can we face a future that objectively appears desperate and sombre, especially for our poor people.
The challenge with mining is that the mining corporations don't want to pay for anything. And if they have to pay, it has to be very little - peanuts, a token. They don't want to pay taxes. They do everything possible to pay nothing or very little in terms of taxes. Now they are trying to employ the smallest numbers of people possible and at the lowest wages possible. This is the way they behave. And this being the case, then what remains for our people, what benefits do our people get from their country's mineral resources?
There is no alternative to fair, just and orderly taxation of the mines. If we don't get fair revenues from the mines, what will remain for us from their exploitation of our country's mineral resources?
This is why we have to take an aggressive attitude towards the taxation of mining transnational corporations. If we don't, they will leave us with nothing but craters.
Labels: CHRISTOPHER YALUMA, KCM, STATUTORY INSTRUMENT 89, TAX EVASION
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