The World Bank said on Thursday Zambia should raise mineral royalties paid by foreign mining firms and even introduce windfall taxes if feasible to gain more benefit from higher global metals prices.
New World Bank country manager for Zambia Kapil Kapoor said the mineral-rich southern African country should take advantage of higher metal prices and raise taxes so that its citizens could profit from the good prices.
Last month Zambia’s finance minister Ng’andu Magande said the government had engaged a team of foreign consultants to help it renegotiate mineral royalties and taxes with foreign miners.
“Given that commodities prices have gone up, Zambia needs to get high benefits from the increased prices,” Kapoor told journalists.
“Zambia needs to raise the taxes, whether it is withholding tax or windfall tax because this is not unique to Zambia and it’s up to the government to decide what taxes it wants to raise (and) we really support that,” Kapoor said.
Kapoor said the country required revenue to spend in social sectors and one way of achieving this would be through revenue raised from the mining taxes.
Zambia’s government has previously said it wanted to raise mineral royalties to 3 percent from 0.6 percent and corporate tax rates to 35 percent from 25 percent.
The country previously scrapped a 15 percent withholding tax to allow mining companies some financial stability after they made huge capital investments in the country, which depends upon mining for much of its foreign earnings.
Key foreign investors in Zambia’s mining sector include Canada’s First Quantum Minerals, Australia’s Equinox Minerals, London-listed Vedanta Resources and Swiss firm Glencore International AG.
Although copper mining is the economic lifeblood of Zambia, some analysts argue the country does not reap enough benefit because the mines are owned by foreign companies.
Uko, Sata has been singing this song for ages and i wonder why our govt has not guts to effect it. Now the world bank has joined the bandwagon. What are circle. The resources boom are not for ever. Are they afraid investors will run away? Well let them go after all we don’t get any decent money from them. Better to leave our resources in the ground for our future grand children. It a shame really and I hope there are no bribes in these deals signed.
Maybe now the world bank has said what we have been saying for ages they will listen!!!!..
Do we need or have educated people in our country?
Attention, why now World bank concern where were they in 1998 when the contracts were signed. Whose interest are they representng? Have they lost or they want to see Zambia continue getting loans from them which are even more harmful than investors. However it would be wise to rise the taxes to much others on the world marketing. But this should not come from the WB but from our minister of mines mr. Mutati. Its his duty together with the Bank Governor to correct the mess.
This is what we call daylight robbery by our infestors.
Frankly speaking, the WB, what are they up to. Aren’t they the same guys who introduced SAP? We don’t need foreigners to tell us what to do because they misled us under the thief govt. We need our mines back including our railway line.
you know fellow zambians sometimes i think that all zambian need to do is get away with investors ..but at the same time again i think that we cannt develop zambia by ourself without incorporating foreign investors …causing if you look at who buys that copper..its the same foreign investor …zambians dont but copper for local use …
so my poit is that i do think that mwanawasa and his ministers the likes of magande ,kalambo mwansa have tried to get things working .
#4&6. If according to you, the mines were sold in “thief govt” why then has new govt been singing songs of having developed the mines? In this case chiluba gets the blame, new deal gets the credit, but for what?
If new deal has to have any credit, let them raise royal to 5%. Let them consult chaves, Venezuela. Chinese investments you are quarelling about today, will bring same problems in future. The idea of FDI should be external money to be used by locals to develop their resources.
This is a crime, Magande, Mwansa and the Prez must be arrested for not acting in the interest of our country in terms of getting the right deals in the mining sector. I was discussing this issue with my foreign friends and the simply laughed at Zambia for allowing such a set up were we make rich nations even richer while our people live in poverty. It is unbelieveable that this copper boom is literally passing us by before our very eyes, I used to think that this wouldn’t happen in Zambia!!
AND why is the gov’t getting foreign consultants to negotiate the mining deals, is the gov’t saying in the whole of Zambia, we don’t have expert negotiators? Who are these foreign consultants and how much are they been paid? I don’t trust magande bcoz he used to work for the IMF before he became finance minister and therefore his thinking is more like the IMF / WB and by the time the so called negotiations are finished over half of all the copper would have been mined out with living any benefit
WITH THE WAY RUN IN THIS COUNTRY NO ONE IS BRILLIANT. ZAMBIA IS A COUNTRY FOR RENT.
Politicians must desist from advocating for Sata’s penalty considering that he has wittingly confessed of being a foreign nation hired Gun. There is answer right their. My advice is please fellow compatriots lets allow specialized law officers to independently handle that issue per our Zambian national interest tradition.
….Seasoned law officers know best timely mechanics such as rapid awkward hour pick up for a user friendly interrogation in consistency with universal HRs policies. In a zero interruptible environment from an hour of best choice and in a traditional way task is possible.I can only advise that others technically jam all in and outgoing networks from a pick up point until after departure.
…It very is important that Sata should be released the same day within 6-8 hours of a pick-up. No follow up after a friendly interrogation. Encourage him to immediately pick up from wherever his task will have been the day before an interrogation. A deafening silence from the Government political power house should be a mandatory scenario over it.
… It is very important that…
I repeat:
Politicians must desist from advocating for Sata’s penalty considering that he has wittingly confessed of being a foreign nation hired Gun. There is an answer right there. My advice is please fellow compatriots lets allow specialized law officers to independently handle that issue per our Zambian national interest tradition.
The fact is I’m scared of Mr. Sata’s leadership. I can’t sleep or eat because what he is advocating is nothing but the truth. My appeal to fellow compatriots, let’s join this man and save our country from the criminal MMD otherwise future generations will persecute us for our careless handling of public affairs.
Mr. Sata is a great man, read what they are writing about him go to www[dot]news[dot]harvard[dot]edu
This man is making his party PF even more popular and his message can be heard from Lusaka to harvard university advocating for human rights, african development and the fight against corruption by the current MMD administration.
The more the MMD try to discredit him the more popular he becomes and the west are in full support of his message. Mr. Sata is the people’s leader, vote for him.
Men in textbook theft being held beyond sentence
REXBURG, Idaho — Three former Brigham Young University-Idaho students convicted for stealing textbooks are still in jail, three months after they finished their sentences.
Humphrey Sinyangwe, 32, Andrew Sinyangwe, 24, and Bronson Chikusu, 25, were supposed to be released in August.
Part 2
But authorities say the three Zambian men are being detained because they are material witnesses against a fourth man charged in the case.
State law allows prosecutors to detain the men, and there is no timeline for their release.
But their attorney is working to have them freed immediately and has filed a motion to have their testimony recorded.
They were arrested in February and charged with stealing 1,200 books from the university and selling them online.
I dont see any reason why we need foreign consultants to renegotiate the taxes. We have the best educated lawyers,economists,accontants you name them in the country so why should we import expertise on our own challenge.And besides why do we impose the “my way or the high way policy” afterall these are our minerals we are talking about. Sata said it along time ago but we never listened. PF is the way to go.About the three Zambians being detained foreign affairs should step in or do we need sata
i trully sympathise with the 3 Zambian boys, but what has foreign affars done about it? They have served their sentence so GRZ must step in and fund their legal fees.They are Zambians and deserve to be helped by our Government.Their case was a minor offence and they should not have served the time they did in the first place had the Government intervened
Foreign affairs has let these boys down.What is the point of having an emmbasy if issues like these cant be addressed.The case at hand was a minor offence and our boys should never have gone in.Guilty fines would have done.The embassy should demand an immediate release for the lads and should foot their legal bills.
Copper theft: 3 nabbed
By JUDITH KONAYUMA
By BARBARA MUKUKA and CHARITY MUSA
POLICE have arrested three Chinese nationals after smashing a massive copper theft syndicate in which more than K4 billion worth of the metal was allegedly stolen and buried at Boaxing Mining Company in Ndola.
The police anti-copper theft squad raided the company and took away the three Chinese who have been detained in connection with the alleged theft.
Sata was right about the Chuchu! Evidence good enough.
Ok so Sata z goin look hero i guess
Not look hero, but Sata is speaking the truth and shaming the devil!
Mr. Sata is speaking the truth, this is the second time a chinese copper syndicate has been discovered. The last one was in Kitwe and these are just a few that the gov’t know about, I’m sure there are lots more. My only advice to Mr. Sata and the PF party is that they shouldn’t just focus on the chinese, they should look into the operations of all foreigners and when campaigning they should touch / visit all parts of the country. When election time comes, it will be a proper land slide victory.
MMD cadres any comments about this great development and revelation of nusty activities of this so called infestors not investors doing day light robbery, further plundering our already plundered economy.Mpombo say something we want to hear from you, come out and defend again. Its true HON SATA knows these chinese very well and he’s telling the world nothing but the truth and this is hurting Mpombo and his master chuchu
Well these calls are sounding like a broken record now… Zambians should just get up and start the requesting the investors to pay the windfall taxes before it is too late. There are many examples we can use, as such no need to contract expensive consultants who will eat into our money anyway. the second thing I would like to ask is, please invest any little money that you have in Zambia… For those living outside, remit as much as possible back home! We need to be engaged in the economy
Can someone tell us weather Mr.Sata is Xenophobic or he is a patriot? Can George Mpombo aplogise to Mr.Sata for labeling him anti chinese.Chinese behaviour is beginning to manifest and yet MMD is pretending.Imagine what other economic sabotage these fong kongs have done to our country
Cobra is a non-starter and will never make it to Plot 1. He had his chance and blew it.”Come on guys” are we all so myopic as to be unable to identify alternative leadership ?? If this is the case…..we are doomed.What can the old guard do that they didn’t do when they had the chance ?? It is easy to appear to speak sense when in opposition but the dynamics of political power and resulting reality changes people and Cobra will be no exception.
#31 Sata can be non-starter but what he said is what is happening to these thieving chineses. Bwana TOP you hate Sata so much, u are even avoiding to talk about the reality of what he has been talking about, you just consentrating on what he said or done. What about what your Chocholis friends have done? (stealing our copper) becoz you are afraid of Chuchu’s whipy. You are doomed my friend, just go and lick your master’s ILENDA at Plot 1.
#32
Actually Dr Chuchu has agreed that His Excellence Hon Sata passport was stolen by Chinese in London.
#31 Pundit
Have u heard that chocholis have pierced chuchu’s tongue with 1000 inddles so that it can minimise dripping ilenda in public?
(32+33),do you remember why Dr Chuchu resigned when he was VP? You laugh at your presidents medical condition that came about whilst he was on national duty..what kind of people have we become?Your economy is doing better than most and yet you would sooner ridicule your president than lend a hand !! Shame on us,shame on us,shame on us.Should this be true we deserve all ill luck any nation can have!!
MMD cadres defend undefendable inter/national concerns.Thats why we always see pipo in govt if they fail they use others for their failure. Selling of mines by Chiluba ‘s govt was not in bad faith coz copper’s demand was at its’ lowest. Can the so called new deal thughs use chiluba, IMF and WORLD Bank for their failure to renegotiate royalties and taxes when copper price is at its highest. Madarax movement for dealers (MMD)are a shame because they refuse to accept wrongs.Time will catchup with u
Am happy coz all MMD cadres have uprooted themselves from this blog due to Dr Chuchu misdeeds and dirty deals he has enganged with chocholi-chocholis. Adios MMD cadres.
Do we need foreign experts to renegotiate mine deals? Dont we know what we want? Didnt a similar kind herd GRZ into selling mines for a song? If GRZ has real men (not those we see kneeling for other men) IT MUST PUT ITS FOOT DOWN. Here is the FORMULA. New mineral royalty (5% – 10%, price related) and 35% corporate tax or FACE NATIONALISATION. Dont waste taxpayers money on experts yet we know what we want. Is GRZ afraid of investors? Would Zambia have won independence if it had such TIMID leaders
It does not make sense to wait for a foreign consultant to renegotiate for the minning contracts. Zed is endowed with people who are capable of doing a better job. The foreign consultants went to the same schools with our bothers and sisters. I find it offensive and insulting on talking about foreign consultants who most cases will be paid exorbitantly and justified as economical. When a fellow Zed asks for the same amount, then it is expensive. Shame on you Magande
HKN(38), why should a local demand the same as an expatriate consultant?? We shouldn’t fool ourselves thinking we have an abundance of skilled people who have EXPERIENCE in negotiating these complex agreements.Supply and demand rules pricing.We Zambians are often guilty of overating ourselves as people and as a destination for investment.