Yaluma explains PS on mine boards
By Misheck Wangwe in Kitwe
Fri 06 Dec. 2013, 14:01 CAT
MINES minister Christopher Yaluma says it is a statutory requirement that his permanent secretary should sit on the boards of the mines to provide guidance.
Meanwhile, Yaluma says time has come for him and the PF government to be very tough on foreign mine investors that have refused to give business to locals.
In an interview in Kitwe on Wednesday, Yaluma said the permanent secretary in his ministry, Dr Victor Mutambo, sits on the boards of some mining companies to represent the interests of the government and the Zambians at large.
Yaluma said permanent secretaries in other ministries also sit on boards of various institutions to provide guidance and ensure that the interests of government on behalf of Zambians are protected.
"Yes, the permanent secretary in the Ministry of Mines Dr Mutambo sits on the board of First Quantum Minerals and also on the board of KCM. That's by statutory requirement; it is in the mines Act. He provides guidance on what is needed as regards the various laws and anything which is of special interest from the government. The setup of representation of permanent secretaries on various boards is similar across all sectors. I can give you an example of Zambia Railways, the National Airports Corporation and Zesco. There is representation at permanent secretary level of every particular discipline," Yaluma said.
Asked whether it was possible for Dr Mutambo to execute his duties diligently as permanent secretary when on the other hand, he was enjoying incentives of the investors as a member of the board of directors, Yaluma said his involvement was more of serving the interests of government and also to provide guidance as stipulated by the law.
He said the government did not see any conflicts in the situation because the participation of a permanent secretary in any board was clearly stipulated.
"There should be no conflict because if there is any contentious issue that he thinks should not be discussed in that board meeting and he doesn't want to comment, he reports back to the Ministry, we look at it, then it goes back," Yaluma said.
"Take for instance at First Quantum, the PS has no powers to grant or make a decision. Whatever comes from there, if there is anything, he reports back to us. He is a technocrat, a controlling officer vested with powers to listen and guide on what the law stipulates."
And speaking during a meeting with the Association of Mine Suppliers and Contractors and the Kitwe District Chamber of Commerce and Industry at Lunte Lodge, Yaluma said the government was not happy that mining investors had been very treacherous in the manner they were conducting business in the country.
He said local mine suppliers and contractors had been sidelined for a long time, adding that going forward, the government would start to act to protect its people.
"I want to apologise that we have even taken long to act since we came into government two years ago. We must address the huge challenges and hurdles our people are facing in terms of doing business with the mines. Give me up to January and you will see things happening. We are going to make serious decisions as a government because there is no way everything should be going into foreign hands. Even the supply of a simple motor for the mines is done by foreigners; it's unacceptable," Yaluma said.
And speaking earlier, Association of Mine Suppliers and Contractors president Augustine Mubanga said there was need to re-look the mines and minerals Act number seven of 2007 as it was defective on the issues of mines procurement from local companies.
He said the legislation did not provide for punitive action against mining companies that fail to comply with the law
Labels: CHRISTOPHER YALUMA, VICTOR MUTAMBO
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TEO questions role of mines PS on FQMO board
By Misheck Wangwe in Kitwe and Stuart Lisulo in Lusaka
Fri 08 Nov. 2013, 14:00 CAT
THE Earth Organisation says it is a scandal for the permanent secretary in the Ministry of Mines to sit on the boards of mining companies as a director.
In an interview yesterday, TEO executive director Lovemore Muma said the organisation would demand an explanation from the government and interested groups on why and
how the permanent secretary in the Ministry of Mines was one of the directors at First Quantum Mineral Operations.
But mines permanent secretary Dr Victor Mutambo said only the Minister of Finance could explain his participation on the boards of mining companies as he was the one that appointed him to represent the government.
He is the one who appoints the government director to sit on these mining companies' boards, said Dr Mutambo, adding that the mines permanent secretary also sits on boards of other mining companies as a government representative.
However, Muma said other individuals and mining technocrats within the government through the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) could be appointed to serve as board members to protect the stakes of government in some mining giants, rather than the permanent secretary who is on the other hand the regulator of the mines and also has powers to issue operating licences.
He said TEO had no doubt that it was because of such irregularities that strange decisions that were not in the best interest of Zambians were being made on the mines in the recent past and "only the investor and few individuals have benefited, leaving people destitute in their own land".
"In a case where mines contravene the law like we have seen lately in North Western and other mines on the Copperbelt, how do you expect such a senior government official to protect the people? He cannot and it becomes difficult for the permanent secretary to exercise partiality because he sits on the board and he is a beneficiary from some mines and personal gains are attached.
The PS in this case has both his legs in government and in the mine so he cannot act in the interest of the nation. We want to see urgent remedial measures taken to address this serious scandal," said Muma.
Muma said such an irregularity was pure corruption and his organisation would want President Michael Sata to take serious action to correct the situation.TEO questions role of mines PS on FQMO board
Labels: FIRST QUANTUM MINING, LOVEMORE MUMA, PERMANENT SECRETARIES, TAX EVASION, VICTOR MUTAMBO
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Tax compliance by mines still an issue - Mutambo
By Gift Chanda
Thu 20 June 2013, 14:00 CAT
TAX compliance by mining companies operating in Zambia is still a huge challenge, mines permanent secretary Dr Victor Mutambo said yesterday.
Dr Mutambo, however, said the government was acting to curb the trend.
The 3rd edition of the Zambia International Mining and Energy Conference and Exhibition (ZIMEC 2013) which opens in Lusaka today, gives an opportunity for investors to realise the country's mining potential and at the same time the challenges the industry faces.
The event, which is organised by the Association of Zambian Mineral Exploration Companies (AZMEC), in partnership with the Zambia Chamber of Mines and AME Trade Ltd, will see international investors, industry experts, Zambian decision makers, development partners and donors, as well as other key actors and partners in Zambia's extractive industries discuss key issues in the sector including taxation.
Dr Mutambo said policy changes the government was currently taking in the sector were inspired by legitimate grievances such as benefits not trickling down to ordinary Zambians.
"For Zambia, if we are to achieve the much-needed development, we need to ensure that we put a proper monitoring mechanism so that what we get from our ground is properly monitored and accounted for," Dr Mutambo said.
Experts argue that weak tax laws mean little revenue is collected and the government has accused mining companies of lacking transparency in their operations.
Data shows, for example, that much of Zambia's exported copper is destined for Switzerland but little of it shows up in Swiss customs figures.
That is because it only moves there on paper. For tax evasion purposes. Of course, Glencore International (Mopani) has it's HQ in Switzerland. Nat Rothschild now has Swiss nationality. - MrK
According to a report last year by US anti-graft watchdog Global Financial Integrity - which highlights how resource wealth is often squandered in the developing world - almost US $9 billion has been illegally siphoned out of Zambia.
The amount is almost half of Zambia's current gross domestic product.
Dr Paul Zambezi, former science and technology permanent secretary, also questioned how much the country was reaping from other commodities like gold.
He felt that the country could actually reap more revenue from gold than copper.
But Dr Mutambo said the government also intends to tighten its grip on its share of profits from gold extraction as it tries to boost compliance and tax revenue collection.
Last year, the government introduced guidelines for mineral exports to allow state agencies to verify weight and content to enhance transparency.
The government also plans to monitor the flow of money in and out of the country.
Zambia collected K4.4 billion a (US$830.1 million) in mining taxes in last year, compared with K3.3-billion the year before.
Labels: AZMEC, TAX EVASION, VICTOR MUTAMBO
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Zambia to produce 1 million tonnes of copper by 2015
By Henry Sinyangwe
Tue 02 Apr. 2013, 14:00 CAT
MINES permanent secretary Victor Mutambo says Zambia would produce up to 1 million tonnes of copper by 2015 up from 750,000 tonnes produced last year. He said the country's mining industry was growing at a fast rate considering increased expansion by mining companies.
"There has been tremendous performance from the mining sector. We have seen huge investments in the sector and a lot of expansion projects have been ongoing with Konkola, Mopani and Kasanshi mines… and equally production is also currently rising steadily," Dr Mutambo said.
"For example, last year, we were talking between 715,000-750,000 tonnes of copper produced, we are thinking going into 2014, 2015, Zambia should be reaching 1 million tonnes of copper."
He said government was also trying to put up a mechanism so that it was able to know the value of the metals being exported.
Dr Mutambo said if one was mining in the country and they were earning foreign exchange, it was in order that part of that is ploughed back into the Zambian economy.
He said government was trying to ensure that the country got a better share from the proceeds in the mining sector as opposed to having all the money outside the country.
"Zambia will continue to be a favourable destination in terms of investment. And what the government is trying to do is to make sure that as much as we encourage investment, we also try to get a fair value of it and we can only do that by stepping up the monitoring mechanism in terms of what is being produced, how much is being exported and also how much we are getting from whatever we are exporting which is a cardinal issue," said Dr Mutambo in an interview.
Labels: COPPER, VICTOR MUTAMBO
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Govt recruiting mine experts
By Misheck Wangwe in Luanshya
Mon 17 Dec. 2012, 08:40 CAT
MINISTRY of Mines permanent secretary Victor Mutambo says the government has embarked on recruitment of highly-qualified mine experts that will be
monitoring mine operations from the point of production to export.
Speaking after touring CNMC Lunshya Copper Mine's Mulyashi Mine on Saturday, Mutambo said the recruitment of mine experts was in line with the implementation programme of the Statutory Instrument number 34 of 2012 that was meant to enhance transparency in the country's mining sector.
He said K10 billion had been provided for in the next year's budget for the exercise and government was also grateful for the US$1.9 million assistance it had received from the World Bank under the mining basket funds for pilot mine audits and many other mining undertakings.
Mutambo said the statutory instrument also compels mining companies to begin submitting reports of their operations, with full details of their entire chain of production starting from tonnages of ore produced, waste and their recovery rates.
"This is important because government wants to ensure transparency in mine operations and this will result in effective contribution of the mines to national development," Mutambo said.
Mutambo warned that there would be serious consequences, penalties and possible prosecution of mining companies that would fail to meet the demands of the government.
He said the ministry of mines would be conducting regular inspections and its presence would be felt even at border points where tucks carrying copper and other minerals from the country would be stopped and express sample analysis of minerals would be conducted.
He said the government was happy that Mulyashi Mine had restored hope in the mining industry in Luanshya and that the investors, CNMC Luanshya Copper Mines, are performing exceptionally well and contributing significantly to economic growth.
And CNMC Luanshya Copper Mines head of public relations and business development Sydney Chileya said the company had welcomed the government's move to enhance its presence in the mining sector from the point of production.
Labels: MINING, VICTOR MUTAMBO
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