GOVERNMENT has extended its ability in mining companies to allow smooth interactions and raise morale to the workers that should work in conducive environment.
Finance Minister Alexander Chikwanda has said this during the tour at Konkola Copper Mine (KCM) in Chingola yesterday.
“We are here to underscore the importance of mining operations also to extend efforts and interaction to enhance lifespan of mines to effectively contribute to nation economy”, Mr Chikwanda said.
The minister said the Government has the mandate to allow mining investors to expand its operations to create more employment to Zambian people.
He also said that Government is much committed that the level of unemployed people is not lessened at a slow pace, hence to speed up employment opportunities.
Mr Chikwanda however, recommended KCM Management and its workforce for doing their best in mining operations though in difficulties conditions.
He said problems should be interactable between the Government and mining sector to see the way forward and to safeguard jobs.
The minister who was on tour with his entourage team was Zambia Revenue Authority Commissioner General Berlin Msiska, Chingola District Commissioner Roy Nang’alewa and KCM officials extended the tour of duty to Lubambe Mine in Chililabombwe.
KCM VICE President Human Capital Management Jacob Njovu thanked the minister for visiting the mining company and said it was a right time when clearly the business is facing great challenges and operating in a very difficulties business environment.
“We are pleased to be addressing the challenges together in a spirit of mutual benefit, we are encouraged by the President’s clear commitment to win-win solutions” Mr Njovu said.
Mr Njovu said KCM strongly shares the Government’s aspirations to enhance the development of the mining industry, the economy of Zambia and importantly its anti-poverty agenda.
He also said KCM will continue to play a big role in programmes intended to alleviate poverty in the country.
“Two-thirds of KCM’s total annual cost of $1 Billion is spent in Zambia, this entails that KCM plays a big role in supporting the growth of the local economy directly and indirectly.
He said KCM will work closely with GRZ departments and agencies to ensure that programmes align with initiatives from the Zambian Development Agency (ZDA) and the Ministry of Commerce, Trade and Industry are undertaken.
What about VAT issue?
I feel you chale. Elo Chankalipa sana! We own those minerals, and they are dug out of the ground already rich and precious. So why should these investors fail to pay us for extracting our minerals.
It’s not like we only gave them land and they are manufacturing the minerals. The minerals are already there, all they are doing is getting them out of the ground, polishing them and selling them. We own those minerals and must therefore be shareholders of every foreign mine so as to retain some benefit. We contribute the minerals, while they contribute the capital and expertise to bring the minerals to the surface/market full stop.
It’s like someone coming to your farm killing your animals and selling them without paying anything to you. Awe twakana! Twakana sana futi. Chankalipa!
cHIKWANDA .Zambia is bigger than you.The issue of Tax regime is smaller than Zambians if you don’t take this issue serious you are going to destroy the economy of Zambia. Look at the example for Lumwana mine if they close the mine here are the projections how much Zambia will lose money through Direct and Indirect Tax contributions to Zambia because of your greediness .Lumwana makes a significant contribution to Zambia’s economy by paying direct taxes, by supporting business and employee that pay tax(including employees for contractors) and by contributing to the local communities its CSR policy.Employees pay $25m in payroll tax contribution,$13m in local taxes and import duties,$39m in royalties,$13m in smelting taxes,$15m in fuel import duties,$8m in supplier tax payment and $7m in…
Ok. That’s Chikwanda at his own work. I don’t hate him
If its true Edgar is operating with one kidney,then I urge him to go to Mukobeko maximum prison and have one condemned arm robber have his kidney removed so that our president is fit.
He should get one kidney from HH.
From HH? Mmmm prisoner better!
The mineral tax issue is nt clear please elaborate govt stance in the stand off with mines bwana?
We must stand firm on the new taxes.
Frankly why not just re-nationalise? We are being cheated on our copper.
It’s criminal what is happening in Zambia. The country gets less than foreign corporations.
How I wish these mines were fully owned by Zambian government. We have been plundered for too long.
How can we accept less than 50% royalty from foreign companies to exploit our God-given natural resources? This government must put an end to put an end to bad national mining laws.
I feel you chale. Ell Chankalipa sana! We own those minerals, and they are dug out of the ground already rich and precious. So why should these investors fail to pay us for extracting our minerals.
It’s not like we only gave them land and they are manufacturing the minerals. The minerals are already there, all they are doing is getting them out of the ground, polishing them and selling them. We own those minerals and must therefore be shareholders of every foreign mine so as to retain some benefit. We contribute the minerals, while they contribute the capital and expertise to bring the minerals to the surface/market full stop.
It’s like someone coming to your farm killing your animals and selling them without paying anything to you. Awe twakuna! Twakana sauna futi. Chankalipa!
Yes man, it truly hurts to see this state of affairs. If we could leave at least even one mine unexplored with all the minerals in the ground until such a time that the foreign companies give us the fair cut or until we ourselves develop our own capital, machinery or know-how to exploit and market the resources for ourselves.
So called educated bloggers show their ignorance of basic economics. Do they think they are wiser than all governments and politicians that came and went since independence? Do they think all those involved in privatization of mines were and are dull? Mining is a capital intensive business. It is a cyclical business. Last 15 years have been good for the mining industry and now the bad phase has started. Next 10 years are going to be very very difficult for mining and any resource industry (including petroleum). Chale, D’Kamp, even if government found money to buy these mines, they cannot do anything to make money, loans will not be paid and workers will not be paid on time. Unrest will be order of the day.
Steven, thanks for your observations. But we are not even educated, we only have a degree here and there, and maybe ka professional qualification.
But do you even need to be educated to know that if you own something you should derive benefit from it? We are not talking destroying the mines, and we know the story of Nationalisation, that’s why “Nine Chale” expressed a mere wish.
However, we advocate partnership, in the words of EL “win-win” situation. Walyako, naine Nalyako. This thing of 100% foreign ownership must be discouraged. Zambia will benefit more through dividends and royalties than elusive taxes. They want tax breaks when they come Ati until we start making profits, then they under declare profits, over employ their countrymen, exaggerate their costs, under declare…
Cont’d
They under declare their production levels and come up with every means possible to avoid paying your taxes no matter how you structure the tax system.
No wonder ABC thought of having a flat tax royalty system based on the size of the mine whether they tell the truth about their costs, revenues, production or not, in trying to get at least something.
But maybe by being shareholders and having our right to fill certain positions with our own people we can keep an eye on what the investor is doing and hopefully get the benefit of our resources, provided those we entrust with taking care of our interests have the interest of the nation at heart not like one Bantubonse.
The issue of Nationalisation Vs Privatisation brings to mind the fable about A Man, His Son And His Donkey which some people are familiar with.
A man and his son were once walking with their Donkey to a market. As they walked, along came a countryman and as he passed them he said: “You f00ls, what is a Donkey for but to ride upon?”
So the man somewhat embarrassed put the boy on the Donkey and they continued on their way. But soon they passed a group of men, one of them said: “See that lazy youngster, he lets his father walk while he rides. Disgusting!”
So the man asked his humiliated boy to get off the Donkey, and got on himself. But they hadn’t gone far when they passed two women, one of whom said to the other: “Shame on that lazy lout to let his poor little son trudge…
Cont’d.. son trudge along.”
The man scratched his head and was at a loss. So he decided that both him and his son ride the Donkey. By this time they had come to a town, and the passers-by began to jeer and point at them. The Man stopped and asked what they were scoffing at. The men said:
“Aren’t you ashamed of yourself for overloading that poor animal? Look at your mighty buff and your hulking son?”
The story goes on and on and they kept switching places in response to comments thrown at them. They were last heard of carrying the Donkey with its legs tied together and a wooden pole thru its legs, and sadly the Donkey drowned and died as they tried to cross a river.
The moral of the story is: we must not flip flop between Nationalisation and Privatisation and Nationalisation…
Cont’d . … and Nationalisation again, of the mining industry because that will surely kill it. We need to rigorously encourage transparency and good TAX regime. Constructive criticism is very important.
When it comes to running a business, experience has show that Govt is NOT a good businessman by far. Imagine a person like RB having uncontrolled power over the mining industry. God forbid.
Zambia has to be careful. The downward cyclical phase has started. Copper prices will remain below $5,000 for years to come. I would not be surprised if it goes below $3,000 a tonne. Politicians shall get ready to cut their salaries into half, ministerial positions cut to 1/3rd, Permanent secretaries position cut by 80%, DCs positions abolished, Provincial Ministers positions abolished, Tours outside the country reduced 95%, President not to travel out of Zambia for any meeting 100% (no exception). These are the measures needed to save money to pay lowly paid workers on time and keep country going during next 10 years of difficult times.
If the so called mining investors are not happy, the can always go.GRZ should be opening new mines to operate side by side with privatised ones. Local investment in mining is the way forward. After all, our minerals will never rot even when some of the mining investors left.
Total ownership of mines by government will not work. Show me a government run enterprise that is successful. You have issues of salaries not being paid, lack of commitment on the part of workers, poor work ethic.
The attitude of government workers is usually, “they are doing you a favour.”
Government should partner with private investors if mines are to work effectively.
you once owned the mines and failed to operate them.It took Levy to get investors to run the mines.There is no need of talking nosence here.if investors go, can you run the mines at a profit with such corruption levels and tribelism building up?no ways.
Leave the investors alone,Zambia is not the only country where mining is being done by foreign investor no.
The way to go here is to seal all the leakages.The government should revise all the taxes to ensure win -win environment is created.no stealing at all.
BEAQUI Walasa iwe. Thats the point boi. Thanks guys for the thoughts. I can see a better solution for us. We can’t mange to run the mines as a nation, too much corruption in our country. If Levy P. Mwanawasa was there “yes”. Osavala ma MINE… Chikwanda obvious wanvela. Look at the innocent people you want to send in the streets. Shame!
@ Steven M i totally agree with yo contributions,some guys arguing here work in Indian shops nd have no slightest idea on how mines operate. Apart from huge initial capital investiment,the operational costs are also very high. Imigine a single tyre of a dump truck costs. $ 40000 and will need 6 for e ea which wears out within no time depending. environment nnd usage. With our corrupt culture,misuse nd lack of accountability how long do you think the GRZ can run the mine. Look at how ZCCM went nd Kansanshi,lumwana can not be compared with it.some mines on the copperbelt hav very high grades and what is put aside as rabish is what Lumwana mines.they have to move alot of tonnes to get 1 Tonne of copper. GRZ be wise not many investors are buying mines now bcoz of copper price on the worl
And you my man are totally blank on governance and how governments work. In fact most people in politics today do not even understand what national sovereignty means.
Do you know what Obama was going to do had the US been declared bankrupt through a stand off with the republicans during the last government shutdown?
So you bend to so called infestors alias investors whims with no backbone of your own asking them how much you should charge them for getting your mineral wealth.
How about countries without minerals, how do they survive? We should change this copper mentality. What happens when we can’t find any minerals anymore?
I’d rather we keep them as a fall back position when we need to and concentrate on developing renewable resources……
I agree with you D’Kap. The other issue that makes mining expensive is that most of the equipment including the costly tyres are imported down to the bolts. Zambia does not manufacture these. Government would not be bothered with bringing the necessary equipment and then they would be shortages. There would be nepotism and then dubious equipment would come in then accidents would increase in the mines.
Correction:- US$4000 ex-works price. Not US$40,000.
Just Nationalize the mines!
Then for sure HH will be elected in 2016 because by that time Zambians will be starving!
DRC has overtaken Zambia in copper production. WHY?
Is it cheaper to dig copper out there??
Or is it because we have a useless flip flop Government that chases investment away?
Government is double tongued. They invite investors but chase them away. Sometimes for flimsy excuses. Just to throw their weight around. Sometimes it is a question of, “I will show you, who do you think you are.” Unfortunately this attitude is rampant in government.
Our politicians need to realize we are entering a very critical time in our economic cycle. The recent drop in crude oil prices will not last. Chinese demand for copper is reducing significantly as their development and growth is flattening out. We need to seriously and quickly start to grow our manufacturing base. Our economy can not sustain the current level of government expenditure and investment in infrastructure which is the main engine of all current economic activity. The extraction of forex is making matters worse as the Kwacha loses value. We need more not less investment and creating an environment for this to happen should happen as soon as yesterday. As citizens we need to prepare ourselves hard times ahead. I hope I am wrong and good luck to us all.
Mr President please lower the threshold needed for one to get in as an investor.
I can bring my savings, return with my Zambian wife and start farming in Kafubu Block, Luanshya.
We plan to rare chickens and pigs and grow vegetables with the abundant manure.
We estimate that we can employ 10 people throughout the year.
However, the $300 000 required for an investor’s licence is out of reach sir!