VICE President Guy Scott has said the introduction of Statutory Instrument No.32 is not meant to “kill” the mining sector or is it a form of exchange controls but is aimed at ensuring that the proceeds from the mineral resources benefits the Zambian people.
Dr Scott said Government would ensure that taxes remitted by companies were thoroughly scrutinised so that they could fully benefit the nation.
“Some sectors feel we are going backwards by claiming that we are introducing exchange controls but I want to tell you that we are an intelligent Government that wants to ensure that the resources are properly managed through the implementation of the SI 32,” he said.
Speaking during the 3rd Zambia International Mining and Energy Conference (ZIMEC) in Lusaka yesterday, Dr Scott said it was sad that more money continued to leave the country through tax avoidance hence the need to intensify policies that would ensure transparency in the industry.
Dr Scott said issues of transparency and tax avoidance remained a challenge for many countries globally with the on-going Group of eight nations meeting on taxation and transparency in Northern Ireland being timely as it would assist countries like Zambia find a lasting solution to the challenges.
“We are very in line with this meeting and we expect that we will have increased transparency and access to offshore bank accounts,” he said.
He said the Government would continue to create an enabling environment for investors in the mining and energy industries saying the sectors were key in national economic development.
He said investors should also ensure they ploughed back to the communities they operated in through job creation and other corporate social responsibility activities.
“Government was not elected by the people of Zambia to extract 750,000 tonnes of copper a year but to see to it that the minerals are beneficial to the people of Zambia. If it was important, we would not allow for the extraction of minerals but we allowed it because the minerals are supposed to provide jobs, taxation and other multiplier benefits,” Dr Scott said.
He said the mining industry should support local industries by buying locally produced equipment unlike the current trend where all equipment’s was imported.
“We want locally value-added content in the inputs used by the mines. We want local industries to process steel boards and other equipment used by the mines, that way more jobs will be generated from the mining industries.
“It does not make sense again for local enterprises to import equipment and supply it to the mines but it is better to have foreign firms that are established in the country and are engaging local people to produce the equipment,” he said.
The two day conference is aimed at creating a platform for stakeholders in the energy and mining sectors to engage on issues that would enhance the mining and energy sectors.
The conference organised by AME Trade in partnership with Association of Zambian Mineral Exploration Companies (AZMEC) has attracted over 300 delegates and mining giants including Mopani copper mines Rio Tinto, First Quantum Minerals, among others.
Mopani Copper mines chief executive officer Danny Callow said the mine would continue to invest in Zambia, with the mining firm investing over US$2billion to date.
“Mopani will remain a committed partner in Zambia as demonstrated through the expansion drive and infrastructure upgrade we have embarked on,” he said.
Mr Callow said copper production was expected to increase to 1.5 million tonnes by 2016 due to expansion projects being undertaken by various mines across the country adding that the expected production capacity would only be sustainable if reliable energy and good road and railway infrastructure were enhanced.
He said Government and the mining firms should continue to dialogue on various policy issues if the industry was to be fully developed.
If these mining companies are taking away 750000 tonnes of copper per year using those monster trucks which will become scrap metal soon, I would like to know how much was taken away per year during Kaunda time. These guys are stock piling our copper in their countries such that by the time we wake up it will be to late.
Stealing from Africa: Why Zambia is in poverty’
The second ‘wind of change’ is blowing across our blessed African continent, and this time around its not for total independence of our territories from the colonialists but an innate realization among leaders that once we get total control our God given natural resources, we are placing another stone on the pathway towards Africa’s economic development and the TOTAL independence of our lands. Viva Zambia!! Thumbs up our VP!
Bufi, just the opposite very dull and self praising old men :/ too blind to see or too corrupt to react.
see for yourself from youtube ..” stealing Africa” why poverty?
Scott is just a white Mugabe, talks utter rubbish!
Guy Scott this is not a speech we are tired of these things. No body opposes any instrument that makes Zambians benefit from their natural resources. Start doing things without making noise on obvious things. We need a national plan not these piece meal talkings. we need real development not politicking.
Ba scott shut up!!!!! something that should be common sense ati ‘we are an intellegent government’…..sit down!!!!
intelligent**
Never pf government intelligent for poaching MPs Guy scott speaks like Mr Ibu Nigerian movies. Dr Ibu the guy.
It’s silly for Dr Ibu to assert that pf regime is intelligent, it’s so only in violence, attacking, beating unarmed pipo cowardly. Ecomicaly pf regime is disaster.