Reuters reports that the tax the Zambian government is getting from mines in Africa’s top copper producer is not enough and may need to be reconsidered, new mines minister Wilbur Simusa said shortly after being appointed to the post on Thursday.
Simusa’s comments could unnerve investors who were not expecting a major shake-up after newly-elected President Michael Sata assured in his campaign he would not bring back mining windfall tax.
“The money we are getting from the mines in form of tax is not adequate and we are going to sit down with them and discuss so that we reach a win-win situation,” Simusa, a mine engineer said.
Copper mining is Zambia’s economic mainstay and any plans to increase the tax could hurt the industry target of doubling annual copper output to 1.5 million tonnes by 2016.
According to the World Bank, copper accounts for 70 to 75 percent of Zambia’s export earnings, but the mining industry as a whole contributes only about 10 percent of its tax revenue.
Former President Rupiah Banda told Reuters in March audits had revealed that up to $200 million was owed in back taxes.
Banda’s administration had already begun a drive to boost tax revenue from mining companies and this could improve social stability if the nation’s mineral wealth is more evenly spread.
But while any moves to get more cash from miners may signal continuity with Banda, it does not mean the industry will like it. A well-known anti-corruption campaigner, Sata has also questioned copper export data and some experts say his concerns are legitimate.
Miners operating in Zambia include Canada’s First Quantum Minerals , London-listed Vedanta Resources , Glencore International AG and Metorex of South Africa
[Reuters]
GBM as defence minister.Wat a blunder Mr president u en your clew are a flock
WE NEED MONEY FROM MINES. THESE ARE OUR RESOURCES, GOD-GIVEN. THE BEST WAY, AS SIMUSA SUGGESTS IS TO SIT DOWN WITH MINE COMPANIES AND TALK, INDEED FOR A WIN-WIN SITUATION. GO SIMUSA !
The deputy is a seasoned Soldier therefore the defence is in the safe hands.THe deputy always does the job.
Hmmmmm. I am beginning to like this. Now you guys are in government and should show us how you are going to get more money from the mines. Taxation important should be done in a logical and methodical way and should not be based on perceptions and innuendos. Typical politician i.e full of hot air and no substance.Â
Go go Musa, please engage them and reach a consesus. They were funding the MMD instead of Zambia.
#4 Taxation important as it is ….
yes yes yes….go go go pf. we need to have a fair share. kwashala reducing the number of expartriates to increase emplyment of our own pipo……too many indians and chinese….especially kcm.
Yes KCM is supposed to have only 50 expartiates but there are more than 2000 expartriates (Indians (even labourers from India, imagine that)), we want them to stick to the agreement they signed with govt.
These are the same stories we were been fed by Banda’s Gov’t except these are worse because they are conflicting! Sata says one thing today and another later, now his Ministers will begin doing the same
Well said Mines minister Mr. Simusa, thats why we voted for you here in chingola. Now, its imperative that the whole tax policy is reviewed so that we can get as much tax as possible after all copper is the main stay of our country. We need pragmatic and realistic targets and benchmarcks for tax to be collected that will benefit both the country and the investors alike. Therefore there is no need for the investors to be jittery as this is only progressive way to deal with this issue, moreover copper is a diminishing resource. We dont need boot lickers in government but leaders with a clear vision of where they see this country in the next five years. The investors need not worry as their investment is safe but the common man in the streets should also benefit from copper and now uranium.
GO! GO! SIMUSA! GO!
YOU ARE THE MAN!
Please, please lets also take stock of our Emeralds revenue.The precious emeralds revenue, contribution should as well be meaningful to the govt treasury.Infact all minerals of the land, let the newly appointed minister of mines take stock and evaluate whether current cotributions to the treasury is meaningful. Caution minerals are a wasting asset,lets prudently our natural reasources and build our nation.
Pliz when are you visiting KCM i have a lot to share with you minister of labor.Chingola KCM is 100% Indian mine and community.think of it ordinary drivers,operators,leggers,welders,electricians, helps,stores men,cookers brought to work in Zambia.its hell coz i dont know who gives them work permits and what sought of them. i have Indians who have now stayed in Zambia for more than 10 years still in the name of expatriates.what a joke
Yes KCM has more than 2000 expartriates (indians) instead of 50 as per agreement with govt, imagine KCM has even non skilled indians dirtening the plant. We want these people to go back to india and this will result in more job for Zambians.
these are the type of ministers we want already working before being sworn in!
very encouraging indeed -working before being sworn in!
What is important is increasing the local investment capacity and increasing the local mining ownership. Also more minerals must be transformed locally to add value to them. But it’s ONLY through local ownership of the local mining industry that Zambians will truly benefit from their mineral wealth. If not most of the profit will go to multinationals oversea.
Correct!!!
We support you minister! Go for the throat!
What is the meaning of bumper copper production if the money benefits foreigners only. Currently to a Zambian, there’s no difference if mines were closed or open. Shame!
Its absolutely true, the minister himself is from chingola and he can attest to the fact that, even helpers, riggers, welders etc are foreigners, its pathetic. We want investors and not infesters coming in the name of investors. You can imagine I worked as an accountant in one of these indian companies and these same unskilled labourers get more than even a trained accountant, its horrible. Time has come to put things in order especially with the immigration department. They must scrutinise these people thou-rally. thank you.
If the mine owners dont agree with us, it will be imperative that we part company.I know of atleast 10 zambians that can run these mines.We ‘ll just have to sell these mines to our own.True citizens empowerment, not the CEEC crap we had mu MMD.Afterall we had ZCCM before privatization.
Naina na sumina. The world bank and IMF encouraged Levy Mwanawasa to introduce the windfall tax. As evidenced by the Glencore report, these so called investors have been misrepresenting their income. We cannot sit by and be taken for a ride. These mines are minting Big time. The ministry of labour needs a serious wash – this expartriate galore of chaps who cant even dream of being executives in the countries they come from, make it impossible for zambian talent to shine. Natu chivivule. Zambia Yesu Bane not bamwisa na ba nsamya aba nsala- nabalone!!!!
The question of unnecessary expatriate labour is simple to solve. It is the government that gives them work or entry permits.Don’t blame the investors, lets blame ourselves for allowing them in, it is that simple.The Immigration Department needs sorting out.
# 17,are you a kid born yesterday.Your analysis lacks basic analytical skills.The problem in Zambia you have perceived “rich” people just because somebody bought a Merc 500 series on credit ati he can buy a mine hmmmmm………Investment is not as simple as you PF bootlicker sees it.
Latest news, Dr Bwalya Ng’andu. Former DBZ MD to be appointed BoZ governor. It looks likes the new govt is a family affair. It is all about the North and they have a strong motive.
let them pay widnfall tax..Magande & LPM were geniuses…!Simuusa..make sure they pay!all the very best..
Punks must be excited.this guy has change his lunguage from saying “we will impose windfall tax and review other taxes” to  “we will sit down and discuss with them” and you i*****s can’t even bother to query the guy.you’ve got it coming.
Yawn!! LT, where is Chander Chimber the 3D??
Ba Simusa,
We need Corporate Social Responsibility from the mines. First Quantum’s teaching Bwana Mukubwa residents bee keeping and handing out exercise books and lead pencils to deserving school children in Solwezi IS NOT ENOUGH!!!!! The investment code needs revising. Metals is a finite resource, once finished…ALL WE HAVE TO SHOW OUR DESCENDANTS IS A HOLE IN THE GROUND, AND AN EYE SORE OF A WASTE DUMP!!!