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Alba Iulia
Tuesday, August 4, 2020

Government attributes decline in mining’s contribution to lack of transparent mechanism

Economy Government attributes decline in mining’s contribution to lack of transparent mechanism

Secretary to the Treasury Fredson Yamba
Secretary to the Treasury Fredson Yamba

Government says the decline in the contribution of the mining sector to government revenue is to a large extent attributed to the lack of a transparent and fully compliant mining industry.

Speaking during the signing ceremony of the US$12.6 million MoU for mineral value chain monitoring project with key stakeholders in Lusaka today, Secretary to the Treasury Fredson Yamba recalls that just after independence, the mining industry contributed in excess of 25 percent of GDP per annum in total tax revenues.

Mr. Yamba says the inability by the relevant government institutions to efficiently and effectively monitor mining operations has proved to be a source of concern for government and other stakeholders at large.

Mr. Yamba states that this is the reason why government mandated the Zambia Revenue Authority to work in collaboration with other key institutions involved in the regulation of the industry and effectively monitor the operations of the mines.

He says the MoU commences the implementation of a system for a monitoring the exploitation of Zambia’s minerals from exploration to value addition or export.

The Secretary to the Treasury says the system will now provide government with an informed, transparent and non-discriminatory platform for the monitoring of the industry.

Speaking at the same event, Norwegian Ambassador to Zambia Arve Ofstad says for a long time there has been discrepancies in data and information about the actual volumes of production and exports of copper and other minerals.

Mr. Ofstad says the reason for such discrepancies need not be willful deception, but could be because of different definitions and criteria; different timings; different accounting for trade in between companies with and without smelters.

Speaking earlier, Zambia Revenue Authority (ZRA) Commissioner General Berlin Msiska says the system will provide government with adequate information to monitor the mineral value chain.

8 COMMENTS

    • Government should investigate rumors of gold mining at one of the new Mopani Open Pit mines in Kitwe……and if the same is being declared if found to be true.

    • Why are you scared of HH .Can we debate on worthwhile economic issues affecting the country than cheap talk on HH stepping down

    • He was not elected don’t you understand? You have to be elected and liked to be a peoples president. I doubt he would be elected 2016 either. He was gonna stand a chance if the pattern of voting just demonstrated was not in place.

  1. Mining should not be left alone to out side investors but instead, It’s time GRZ started reinventing in mining. As long as mining is left to outsiders, in my opinion, the country’s security becomes at risk. As any developed country, they will say the same.

  2. The Zambian gov’t has one major failure. The mismanagement of the Mining Industry.

    It may be a better approach to STOP exploiting our Minerals where the country does not benefit. It’s not about transparency, but also a study on the returns to our GDP.

    When the Oil industry starts to descend into non profitability, Oil Giant nations are not afraid to slow down or to stop temporarily until market indicators start going upwards.

    If it’s not profitable to mine, we must look to preserve for the future rather than speculate on transparencies. The only thing that matters is profitability, and revenue to GDP.

    Few Zambians are hired in the Mining industry in comparison to the population. We can redeploy Miners or help them into business rather than exploit them.

  3. Kansanshi needs to be scrutinised. The gold contained in copper concentrate is not declared to ZRA, yet, First Quantum gets a gold credit 3 months later. This practice has been going on at Kansanshi since inception in 2004. It is also the practice at their Guelb Moghrein mine in Mauritania. Total disregard for the host country! Tantamount to fraud in the 21st century.

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