Govt urges mining companies to continue lowering production costs

Mines and minerals Development Minister Maxwell Mwale Government has strongly urged mining companies to continue lowering their production costs during this harsh global economic crisis.

Mr. Mwale said it should be noted that the production cost denominator is level of production.

The Minister said this today during the annual Minister of mines luncheon held at Jubilee Lodge in the show grounds.

He explained that in order to ensure that the mining industry remained viable government has taken measures such as removal of windfall tax, reduction of tax on heavy fuel oil from 30 percent to 15 percent and providing for 100 percent capital allowance on investment.

Earlier Mopani copper mines chief executive officer Albeno Mutati commended government for the revision of mining tax regime in particular the removal of windfall tax.

Mr. Mutati expressed regret that some workers lost their jobs and a number of contractors lost sizeable investments as management.

Meanwhile, The Ministry of Mines and industry Development says there is need to diversify the mining industry and not only depend on copper production.

The ministry’s Principal Documentalist Phineas Zulu said there was need for companies to implore other minerals.

Mr. Zulu said there was need to create local demand for other minerals apart from Copper to revive the industry.

He disclosed that there mines were yet to open with the discovery and various minerals.

The specialist was speaking in an interview at the ongoing Copperbelt Agriculture and Commercial (CACS) show in Kitwe today.

He noted that the prices and Copper on the international market was slowly increasing and therefore the industry would soon stablise.

He said the sector was facing alot of challenges like the losses of jobs in the mining sector.

Mr. Zulu said the country had been negatively affected as that was a reduction in revenue due to loss of jobs.
ZANIS