Government says Lumwana and Kansanshi Mining Companies in Northwestern Province paid a total of K57.1 billion in mineral royalties in the last one and half years.
Deputy Minister of Finance and National Planning, Chileshe Kapwepwe, told Parliament Friday that K38.4 billion was paid in 2009 and K18.7 billion has been paid since January this year.
She explained that there were no dividends paid to the Government treasury because this was paid to the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH).
She said the moneys paid by mining companies are used to finance Government sponsored projects in various sectors of country’s development.
Ms. Kapwepwe was answering a question from Mwinilunga East Member of Parliament (MP), Stephen Katuka (UPND), who wanted to know how much money the mining companies in North-Western Province paid to Government in form of dividends and royalties in 2009 and 2010 and how the money was utilised by the Government.
And Minister of Finance and National Planning, Situmbeko Musokotwane said Northwestern Province was one of the fastest growing territories in the country.
Dr. Musokotwane said although the province was in the past ranked among the least development areas in the country, it was now growing at a very fast rate because of mining activities that started a few years ago.
He said Government was encouraging more investors to invest in the area because it has a lot of potential to develop economically.
He explained that Government was carrying out big developmental projects in the province, citing the construction of a new hospital in Mufumbwe and the upgrading of the M-8, also known as Mutanda-Chavuma road from the gravel level to tarmac standard.
ZANIS
Since mineral royalties are set at 3% of gross revenue the K57.1bn does not look like such a large amount when you consider that during the same period Lumwana earned a little over K2 trillion. We are being ripped off.
True indeed.It is an insult to the Zambians.What is 57 billion when they are going home with 3trillion of the poor Zambian money.What a joke.And you the so called investors,how could you honestly cornive and stage a day light robbery assisted by these corrupt GRZ officials?you should bow your heads in Shame.
Mulenga and Chileshe Kapwepwe are twins and not identical ones, why would you put Mulenga’s name on a caption showing Chileshe (the Deputy Minister of Finance).
Do you think Minority interests “due to ZCCM-ih since 2005 are now $ 358,661,000 of which only $ 3 million was paid in 2009 and $ 18.1 m in 2010 while at the same time Kansanshi a profit of 610.4 m $ 664.2 m in 2009 and $ 2008! ? ?
ZCCM-IH-is simply a cost center!
ZCCM-IH-is not a profit center!
When you publish the accounts of ZCCM-IH constantly deferred? There are already four years late?
These people are s.tu.pid!! 57billion kwacha is just about 8 million pounds! These people behave like they can’t count!
LT, why are we being blocked from telling the truth?
This puny, drop-in-the-ocean amount of pocket change is not anything to celebrate. Its nothing.
The capitalist vultures that are the real axis of evil. They have always preyed on Africa and they will never stop the theft. Doc S, we are being ripped off. We urge you to put your own people first; to be brave and wise in the face of the devilish anti-poor corporations of the West that have no conscience whatsoever. Stop taking orders from them. They are enemies. Not friends.
The Zambian government stinks. Who was signing such contracts? No wonder we are badly lagging behind in every area of development. The only development Zambia can boast of is RB’s glob -trotting and corruption. Every country in the area has improved development programmes while in Zambia is so proud of publishing shameful returns from our mines. We need serious and patriotic people in government. Only fools can be proud of such records. We are shamelessly marching backwards. What a shame
#8 Keen, until every Zambian realises his /her self worthiness, these capitalist vultures will always continue to exploit our moral poverty to their advantage. Zambians are chronic beggers, from the president to the cleaner. Every position is treated as position of gain rather than of duty. Chiefs are bought with a packet of cigarettes and at the price of a tin of chibuku land is sold. Foreigners have flocked to Zambia, not because we a peaceful nation though that is true, but because we are dull.
We dont know what is valuable, we do not know what to give and what to sell. We all collectively have no sense of pride in being Zambians let alone belonging to Zambia. We have allowed these capitalist vultures the permission to exploit us through the foolishness and selfishness of negotiators. Our government and our police are the laughing spectre of the region. We are no longer proud to say you are a Zambian. Someone must explain this or will indeed do so someday.
# 8 -10 Mwalasa guys…!
what is the go with our Government Kanshi..and i like how the actually put the Royalties amount in ZMK so its seems as though its good money..
zambia should have had major development through Lumwana and kansanshi by now…but again baluma pansi…!!
elo when they start mining Uranium at full throttle imagine how rich Zambia could be from that..External Debt could be written off in a few years and we can start using our own income. will wait and see
the board of zccm-ih and the GRZ never talk about the scandalous situation of the holding zccm-ih !
The la
# 4 clint
I agree
Kansanshi mining gives only crumbs to govt and zccm-ih
Why govt does not denounce foreign companies which kept money instead of giving ALL minority interest to zccm-ih… just owing for its stakes
Why Govt is so le_nient with foreign companies ?
Interest of foreign companies is to leave ZCCM in a_gony, no money for developing zambia by zambian people
In the same time, First Quantum Minerals rent this money (zccm-ih money) for 0%.. with this money FQM developp its business in others country… and zccm has no money to give to maamba colleries, Ndola lime,etc..
Lumwana’s Net profits:
2009: ZMK 978.5 billion
2010: Q1 NPAT -162.5 billion
And then you wonder why Australia is rich and we are poor.
Excerpt from a Post Report:
“The Church of England divested its shares in Vedanta Resources on grounds, among many others, that Vedanta had been ‘short changing’ Zambia with royalty fees of just 0.6 per cent instead of the five to 10 per cent industry average in developing countries before the development agreements were abolished.”
And yet Doc here wants us to dance in joy for the pocket change.
Why are our leaders so slow in the head?
The GRZ has put an end to the windfall tax ….. and does not require mining companies’ foreign which is due to ZCCM-IH.
The result? No money = no development for Zambia.
It is useful to recall that ZCCM-IH has not published its accounts for 4 years!