Edith Nawakwi addressing a rally at the Changanamai grounds in Kitwe
The opposition FDD has asked Government to consider revising the new mining tax system.
The party says Zambia will lose colossal sums of money in form of taxes if Barrick Gold Lumwana mine pulls out of the country.
FDD Leader Edith Nawakwi says any revenue losses in the sector would have serious implications on Zambia’s Gross Domestic Product- GDP.
Ms. Nawakwi says revenue from the mining sector is important for capital projects such as the construction of schools and hospitals.
Ms. Nawakwi says job losses at Lumwana should be avoided as the country is already grappling with the problem of unemployment.
The FDD leader said this when she addressed a public rally at Chawama Hall grounds in Mufulira.
Barrick Gold Lumwana Mine has intimated that it will pull out of Zambia on January 1, 2015.
The pullout will result in over four thousand job losses.
Barrick Lumwana Mine is opposed to the revised mineral royalties that has been increased from six to 20 percent.
However, last week, the Provincial Administration in the North Western Province said Acting President Guy Scott is actively studying issues surrounding Lumwana mine.
GBM, you are late, no position for you in my party.
We regret to inform you that all ministerial positions in my party are fully occupied.
No obesity in my party.
Thank you for supporting the winning team at last hour.
Yours Faithfully,
UPND
GBM NO CABINET POSITION FOR YOU SHOULD HH WIN THE ELECTIONS . YOU COME FROM A WRONG TRIBE FOR UPND MATE. NO TENDERS FOR YOU EITHER. ALL TENDERS TO GO TO HH COMPANIES.
Nawakwi has lost all recognition that I had for her as a learned person and Political Leader. What is she saying in asking PF to rescind their decision to Tax the mines for a higher return?
Is she saying we as a nation should “beg” for the mining houses and take any “crumbs” they give us? Is she saying that the proposed taxes are unfairly weighed against the investors? What research is she relying upon because she only has to look to Zimbabawe and South Africa to realise that we in Zambia are getting a raw deal and being exploited by the so called investors.
There is no way out of this one for the mines and let them pack up and go if they dont want to give back a fair share. But as we know already, they wont be going anywhere simply because the returns remain unrealitically high
Mineral royalties is better, its based on REVENUE rather than PROFITS.These mining companies will forever declare loses because they use Transfer Pricing to avoid paying tax .
So do not worry investors , you will not pay corporation tax at 35% but instead pay royalty at 20 % which is lower .
Edith:
If Barrick Gold pulls out, that would be the best thing to have ever happened to the smart people of the Zambian Enterprise since 1973. We currently own Lumwana through ZDA at 25%, another 25% or so is held by the principal while the remaining is floated through dual list at ASX and TSX if my memory serves me right.
Once they leave we would own it 100%. At full production capacity it yields more 20,000 metric tons of copper per annum with over a $1.0 billion in capital assets while they carry over $0.5 billion dollars in liabilities on their balance sheet.
I would even volunteer to come back home and run this enterprise for no pay on behalf of the smart people of the Zambian Enterprise. I would turn it around and list it through an IPO on NYSE. I dare them to leave!!
Nawakwi; where do your loyalties reside?
NAWAKWI IS A POLITICAL PROSTITUTE. SHE SLEEPS WITH SO MANY PARTIES SHE DOESN’T KNOW WHICH ONE FINALLY TO SIDE WITH. SHE’S NOW AGAINST THE TAX AFTER CONDEMNING PF FOR NOT HAVING IMPLEMENTED IT.
let them go. our children children migh have enhanced means to mine at same rate of tax
Edith, don’t worry dear, your wish shall be granted, but not before we get the votes on 20-1-2014, as one Sober Economist has observed.
DONT MISLEAD THE PEOPLE THAT WHY YOU WILL NEVER BE PRESIDENT OF THIS COUNTRY
Awe mwandi the people you saying the mines are not giving you enough taxes not too long ago, double standards!
Issues of the mines should not be politicized. The country needs to get what rightly belongs to her. 10% is not asking too much.
Firstly, isn’t this the same Nawakwi who, by her own admission, says she has no vision of her own? So now what gives?
Secondly, to oppose the magnitude of the Tax, i.e. the jump from 6% to 20% without facts and figures is not being serious. Or is she now opposing the principle of Mine Tax?
KIKIKI I CAN’T TRUST OPPOSITION.THEY CAN SELL THE COUNTRY.VIVA PF.WE NEED TO TAX THESE CAMPANILES OTHER WISE WE’LL BE IN TROUBLE IN FUTURE IN THE NAMES OF PLEASING INVESTORS.IT’S OUR LAND.PABWATOOOOOOOOOOOOOOOOOOOO VIVA SCOTT N LUNGU
Nawakwi is just politicking we all know that the taxes imposed by the PF govt on the mines is what everybody has been advocating for and now that it is done, we have compaints from the same characters who were in forefront pushing for this. Nawakwi should take a break from politics, she has no agenda for the country at all.
Go to you tube and watch how international community has been laughing at Africa especially Zambia that the country is being raped for a song. Germany government even offered to help the Zambian government if consulted as to how they can help it recoup something from the sales that multimillion dollar foreign companies are stealing from Zambia. The guys are professional robbers and Nawakwi has no idea! Please go to you tube “Gems TV Zambian Emerald Documentary Film” Rare gemstones in the world are found only in Zambia. I can’t find the other maybe it had been pulled down.
Let them go…make sure you send military police to safeguard the property and prepare it for the next investor. These people have no heart and don’t mean well, they can go if they are not prepared to negotiate.
Edith, surely for political expediency you want to auction off the country for peanuts and stand on an anthill crying that there are no medicines in hospitals! Just keep receiving political donor funds as an opposition member and continue being a losing candidate in every election. viva PF and Edgar Lungu.
Exactly how much are we expecting from the mines, and how much are we getting? Has a study ever been done on this? All we hear are complaints that we ate not getting enough.
There is no rational investor who pulls out of an investment if it makes him money. Anyone who has done an NPV analysis knows this. Taxing mines on revenue is unfair. Telecoms companies have a similar tax to MRT. It is only 3% of revenue. I don’t hear anyone complaining that the rate is too low. A 20% revenue tax is unsustainable
Unsustainable? I like that word, unfortunately it’s always applied in reverse by people like you who support day light robbery of Zambia’s copper mines.
Allowing Mining companies to rob us is unsustainable. Ok
We have the poor to educate and feed. We want developments every corner of Zambia. Value from our copper must deliver these for us.
Corruption and poor returns from Mines is unsustainable.
The only sensible contribution so far!
Just because Other countries charge 30% Royalties is no justification that you also just copy and do also! This 20% thing tells me that Chikwanda did not do enough home work before dreaming up these figures. Yes we all want maximum benefits from our resources but we need to be methodical, systematic and orderly in how we arrive at some of these rates! The jump is too steep!
2014 has been hard for the mines: Non-payment of VAT refunds, 30% electricity hike, fuel hikes and cummulative labour costs to mention the main cost drivers!
The warnings from World bank and IMF concerning this Royalty tax issue will surely hurt our small economy. We are not playing smart enough and we may not achieve what we want to achieve with this 20% thing!
Ati NPV , have you just started your Uni? kekekekekekeke
I always support Nawakwi, but on this one sorry, you are wrong.
Please read the below from LT.
‘Barrick has announced its GLOBAL copper production of 104 million pounds for the first quarter of 2014 with Lumwana Mine contributing about half of that.
[In its financial result statement for the first quarter of 2014, Barrick states that Lumwana contributed 51 million pounds of copper reflecting the effects of an extended and unusually heavy rainy season.]
“Subsequent to quarter end, a partial collapse of the terminal end of the main conveyor occurred. The company is assessing the cause of the failure, the extent of damage and the time to repair the conveyor in order to resume production. Current estimates are that copper production is likely to resume by the end of the third…
CONTINUES….
“Subsequent to quarter end, a partial collapse of the terminal end of the main conveyor occurred. The company is assessing the cause of the failure, the extent of damage and the time to repair the conveyor in order to resume production. Current estimates are that copper production is likely to resume by the end of the third quarter.
MY FAVOURITE….
“In the interim, mining will continue and stockpiled ore will be processed once the plant re-starts. Barrick has comprehensive property and business interruption insurance for Lumwana and believes the incident will not have a material economic impact.”
Copper production guidance for 2014 has been revised to £410-440 million pounds to reflect the processing disruption at Lumwana.’
ENDS
Ms Nawakwi
How much tax have we collected from these GLOBAL contributions our mine makes….51% of this company’s Global Copper Production is OURS.
Dud we then get half of that £104 Million in the first quarter? What TAXES and what percentage did we get out of these amazing figures?
We can’t let Barrick blackmail us, over the unemployment issues. If we get the New taxes we can rehire these guys into other Mines or since Tourism has so much potential……why not retrain these guys to go into entrepreneurial schemes….Lodges and Hotels?..
Think better Nawakwi, our mood is for PF’s new stance. More from the mines please!!
Nawakwi is catching up with age. Please forgive her she does not know what she is talking about.
Coming back to the Lumwana mine owner, they can go if they want . Its better our copper remains in the ground for our posterity,
Peace and Prosperity to Mother Zambia.
Let us not forget that Nawakwi sold our mines for a song. She is at it again to rape our meager resources.