Friday, March 29, 2024

Simuusa directs Chinese firm to compensate ZAFFICO before starting mine operations

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Mines Minister Wylbur Simuusa
Mines Minister Wylbur Simuusa (L)

MINISTER of Mines and Natural Resources Wilbur Simuusa has directed Zhongui Mining Group Limited to conduct an environmental impact assessment (EIA) and compensate the Zambia Forestry and Forests Industries Corporation (ZAFFICO) for invading its land before the Chinese mine starts operating.

The mining group is the owner of the US$690 million Ichimpe Copper and Cobalt mining project in Kalulushi.

And Mr Simuusa has challenged the Chamber of Mines of Zambia (CMZ) to state its position on the perception that mining companies are not honest in their voluntary tax declarations before Government can consider appointing independent international auditors to carry out compliance audits.

In an interview on Tuesday, Mr Simuusa said the matter is being resolved and that he has directed ZAFFICO and the Forestry department to evaluate the liabilities involved.

The MMD Government under former President Rupiah Banda allowed Zhongui Mining Group Limited to start the construction of the Ichimpe Copper and Cobalt Mine without conducting an EIA and on ZAFFICO land.

“I have insisted that the mine owners should conduct an EIA. We will not allow them to start operating without an EIA which is approved and without looking at issues of compensating ZAFFICO,” Mr Simuusa said.

Mr Simuusa hopes that the issue will soon be resolved because the Patriotic Front (PF) government is in a hurry to create jobs for Zambians.

The Ichimpe Copper and Cobalt Mine is expected to create 1,700 jobs at the construction stage and more than 2,000 once the mine is opened in 2014.

Ichimpe Copper and Cobalt Mine is expected to produce 35,000 tonnes of copper and 2,000 tonnes of cobalt per annum.

During the groundbreaking ceremony on May 18 this year, former President Banda said: “I have observed that this mine is being developed on a piece of land whose surface rights are held by ZAFFICO. I am advised that ZAFFICO had just planted its second generation of trees and therefore it is a productive plantation.”

And Mr Simuusa has challenged CMZ to state its position on the perception that mining companies are not honest in their voluntary tax declarations before Government can consider appointing independent international auditors to carry out compliance audits.

Reacting to calls by CMZ that Government appoints independent international auditors to carryout compliance audits, Mr Simuusa said it is unfortunate that some mining companies are claiming that their mining costs have increased by 20 percent after Government increased mineral royalty tax.

“Let us use this audit to ensure that all the statements mining companies are making are correct. We should be very clear as to the reason why we want the audit.

“From the look of things, it is like the Chamber of Mines is trying to defend mining companies. What are their findings as Chamber of Mines? Let them state their position on the perception that mining companies are not paying enough tax,” Mr Simuusa said.

[Zambia Daily Mail]

7 COMMENTS

  1. Ba Minister of Mines and Natural Resources twapapata, when are you coming in to rectify things in KCM ? Ala twacula ifwe ba KCM1 – KCM4 tatwakwata abakutulandilako, not even the Unions bushe niani ukatulubula kukapatulula akalecitika ? Ifwe batumona kwati tuli mbwa, ba management baiwamisha fye ama conditions of service yabo beka ifwe iyoo nikwisa tukatwala uyu umulandu ?

  2. The Minister surely does not need proof from the Chamber that the mines are not “faithfully” declaring outputs for tax purposes!!! This is the responsibility and onus of a responsible government. The question here is does the ministry have adequate legislation and means of enforcing such legislation to ensure the mines “to pay all what is due to ceaser”? Without this legislation, the mines will “scoot us” of the benefit of our natural resources every step of the way.

  3. Also come to MCM were by firing these unqualified expertriate, u will creat more jobs for Zambians. I was wandering who gives these people work permits?

  4. Ba simusa tulefwaya proper salary increament kuno ku Chingola. Twanaka nama 10% – 15%. At KCM our salaries as general payroll are low already. As miners we are asking you to come to our rescue before we imbark on a dont kubeba behaviour.

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