President Edgar Lungu
President Edgar Lungu

President Edgar Lungu has assured mining companies operating in Zambia that Government is rapidly addressing their concerns on the new Mineral Royalty Tax.

This is according to a statement released to the media by his assistant for press and public relations Amos Chanda.

According to the statement, President Lungu has made this assurance after completing a series of consultations with individual mine owners and collectively with the Chamber of Mines of Zambia (CMZ). All the meetings with industry representatives took place at State House over the past two weeks.

The Chamber of Mines of Zambia has assured the President they were confident the Government was positively working towards a speedy conclusion of the matters.

The Head of State is therefore concerned with recent reports that owners of Lumwana Mine would put the mine under care and maintenance, a development that would put over 4000 jobs at risk.

President Lungu regrets that Barrick Gold has announced that the 135,000 tonnes per year Lumwana Copper Mine will be placed under care and maintenance by end of February 2015 and noted that no other production cuts have been announced.

The Head of State has assured that Government will not allow a single mining job to be lost and has accordingly directed the Ministry of Mines to ensure that operations at Lumwana Mine are not idled for care and maintenance.

If the investors proceed to idle the mine, one of the measures to be explored will include the identification of a suitable Strategic Technical Partner to team up with ZCCM-IH, the Government’s investment arm in the mining sector to assume the operations.

President Lungu has therefore assured Lumwana workers that their jobs are secure and there is no cause for alarm.

The President has noted that the industry outlook is that Zambia together with the Democratic Republic of Congo will remain among the few countries with the potential to increase copper production as well as their market share of global production.

However, following the sharp decline in copper prices at the beginning of 2015, focus is being placed on assessing its likely impact on this optimism on Zambia’s role in the copper market and whether this needs to be reassessed.

Since 2000, copper production in Zambia has been increasing reaching a peak of 760,000 tonnes in 2013 before recording a drop to 708,000 tonnes in 2014.

“It should be noted that copper production performed poorly in 2014 even before the new mining tax regime was introduced,” the President said.

“With forecast prices of copper of US$6,350/tonne in 2015 and US$7,250/ tonne in 2016, Government expects the majority of the mining companies to continue to operate without major disruptions. Zambia’s copper production is likely to close at 900,000 tonnes for 2015, the highest ever levels since 1975,” the President said.

Under this environment, Government’s priority remains one of engaging the mining industry with a view of mutually developing a fiscal and regulatory regime that provides a “win-win” solution for all.

Meanwhile, the Commissioner-General of the Zambia Revenue Authority, Mr Berlin Msiska, has issued a Gazette Notice to effect amendments to Rule 18 of the VAT Act providing for conditions of zero-rating of exports that usually places the mining companies in an untenable VAT refund position.

The Statutory Instrument was signed on Thursday, 19th February 2015 and published in the Government Gazette on Friday, 20th February 2015.

With regard to the consultations over the new Mineral Royalty Tax regime, the Commissioner-General, at the direction of the Head of State, has opened negotiations with mining companies to explore the relief entitlements within the provisions of the law.

Under the Mines and Minerals Development Act, there is a provision for the Mineral Royalty Deferment Scheme. The Commissioner-General may, on application by a holder of a mining right, defer payment of royalty due from the holder upon meeting set conditions.
So far, a number of mines have applied for consideration under the Deferment Scheme and government wishes to advise mining companies to stay within the law.

The President has assured that the progressive steps that have followed the negotiations will lead to further positive outcomes that should settle the matter in the coming weeks.

Under the chairmanship of President Lungu, the consultations have included the Minister of Finance, Minister of Mines, Minister of Commerce, Minister of Justice, and the Zambia Revenue Authority.

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76 COMMENTS

  1. Your Excellence,

    Please do not give in to the demands of these fake, greedy, profit mongers mining companies.

    This is our copper and it will always be ours when these foreigners are gone. It’s high time they danced to our conditions!!

    Please don’t give in!!

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    • 100%… they always want to win. No new mine would have been opened if the extensive feasibility studies they always do for years do not show that each mine will be profitable for at least 30years. These studies include, political situation, taxes, selling price, labour issues etc. Its all greed and lies to shut mines after less than a decade due to none profitability.

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    • Your Excellency when is your meeting with Mr. Fred M’membe, Mr. Mutembo Nchito and Mr. Nchima Nchito regarding the recovery of the K14Bn fraudulently obtained from the DBZ? When are you meeting Mr. Fred M’membe regarding the K8Bn the post owes ZRA? Thanks in advance.

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    • Blackmail paying dividends. You can not beat them.
      Incidentally Lusaka times has not reported on the President’s tour and speech in Chawama and Msisi when he went to commission Police Posts. One wonders whether that was not news worth edition here…

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    • Tembo, did u say this is our copper? What about the pipo of NWP who yo Pf has neglected in order to develop yo areas? For me I don’t care if lumwana closes. The local pipo have benefited nothing. To hell with all of u and yo pf.

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    • have you considered your fellow zambians that are going to loose jobs? how many of their dependents are you going to keep in your home? Could you say that if you were one of them?

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    • Nothing wrong with consultations. However, by the time Lungu you got to know that you are the 6th Republic of Zambia President, you should have had a policy direction on this key matter. Recall you sent ZRA to negotiate with the mines, that sent a wrong message to business community and within your own govt. We shall wait and see what the final outcome will be. May be a leave would help…..

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    • I wonder if you guys commenting here you actually work for the mines. Do you understand what it takes to run the mines. our government can not run the mines with our current financial status. Do not think if the investor leaves today,tomorrow there will be another investor to take over. the best the government can do is to find an indirect way to obtain more money from mines.for example telling the mines to increase the employees salaries lets say 15% and pay mineral royalty 10%,so that ZRA will collect more taxis through pay as you earn.employees will be happy more wages. and encourage them to grow and employ more. Hello!

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  2. Yaba! Mwanakatwe said if the mines are not ready to pay, then tax can be deferred until such a time when they make profits.
    (Which business person can tell the govt that we are making profit and now please tax us?)

    Chikwanda said that I hope Mwanakatwe was misquoted.
    (Where is the level of collective responsibility here)

    Now the President has said that The Govt is rapidly addressing the concerns of the new mineral royalty tax
    (What is happening? Didn’t they discuss as cabinet before they came up with this animal called Mineral Royalty Tax)

    Total Drama, I tell you!!

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    • They didn’t.
      This was done before they even concluded the discussions. it was Mr Guy Scott on the seat that time.

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  3. Looks like the beginnings of CAPITULATION by our Govt as usual. Can we grow some backbone for once!!!!

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    • If government doesn’t give in will spell doom for the country, whether you like it or not. The kwacha will spiral down to K20 per dollar, the economy will crumble and everyone will suffer. Your government doesn’t even have money to pay civil servants salaries but you want to start pretending; the money GRZ pays to civil servants come from mines.
      Multinationals are powerful; don’t mess around with them. Let government get bigger shares in new mines as a way forward for the future, like is the case in Botswana.

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  4. Guys,
    When we do a feasibility project study for a new mine, we undertake what is called SENSITIVITY ANALYSIS.
    This includes:
    1) Assuming metal price falls
    2) Assuming work is stopped due to strike or natural calamity
    3) Assuming taxation is increased
    4) Assuming mineral royalty is increased, and
    5) Assuming input costs increase
    Only when all those hurdles are cleared…DOES THE PROJECT PROCEED.
    Please Mr President, DO NOT BE DUPED. These investors are here for their shareholders benefits…NOT ZAMBIANS
    In fact, they try to exploit cheal labour, cheap power and low taxation to maximise profits!
    Kindly bear that in mind?

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    • @divorced guy, all investors whether local or foreign invest to get a return. No businessman invest for charity. Barrick invested to get a return for their shareholders not to please u. I support barrick on this one. They have done a lot for Zambia. Some of u r just yapping. U don’t know anything about mining and it complexity. You failed to run ZCCM because u Zambians are daft and just talk too much.

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  5. Well, Yambayamba, you will always capitulate if you do not think through your decisions carefully, if you do not consult sufficiently, and if yours is always a knee jerk action to please the Past news.

    Tell me, the crusaders for taxing the mines were the Past using so called “mining expert” Dr or is it Chief Mphande and the fake priest Luonde and others. After this halaballoo that threatens Zambia’s economy have you heard the Past say anything? NO, instead they have moved on to defending their bellies and their cartel ally, leaving you to a potentially embarrassing capitulation. And where is ActionAid Zambia? All quiet and yet they started the drama and put so much pressure on the poor minister of finance to save his skin. Ironically the minister is now the one defending the mine…

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  6. AS USSALL LUSAKA TIMES HAS NOW DECIDED TO GO IN BED WITH PF,NO NEWS NOWDAYS ONLY CRAPS.TUNFWEKO & ZAMBIAN EYE ARE EVEN DOING BETTER NOWDAYS THAN THESE FOOLS CALLED LUSAKA TIMES. A U PAID BY PF NOT TO PUBLISH THEIR WRONG DOINGS.KUTUMPA OKU MWAMBA NOMBA BA LSK TIMES

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  7. Suntwe wasuntwe

    How do you collect a debt like that?. Is it the president to call for a meeting to collect a debt owed from an institution.
    Sounds like you are ignorant about the law of debt collection or contract law operates.

    Clever M’membe paid all his bills a week before Lungu was announced president. The post does not owe the government or ZRA that kind of money. You must be serious lagging behind. The only thing EL can do now is fight Mutembo.

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  8. Please read this quote from this article..”Under the Mines and Minerals Development Act, there is a provision for the Mineral Royalty Deferment Scheme. The Commissioner-General may, on application by a holder of a mining right, defer payment of royalty due……So far, a number of mines have applied for consideration under the Deferment Scheme…” . Sadly it appears Mwanakatwe was right; we may just get payment of these royalties deferred! What more now with the variation with the VAT refund rules for exports? We are set for more losses. It appears these negotiations are being led by politicians with little technical guidance and the laws grant too much discretion to enforcers- a fertile ground for corruption! The Minerals Dev.Act shud be amended as corporate tax is no longer there!

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    • that is the source for corruption, having clauses which are left to individuals to interpret on such a sensitive matter.

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  9. If you have been reaping 100%n profits, to adjust downward by just 20% feels very painful.
    Please, government, let us not bend here. These mines are very very profitable and these investors know it. the problem with Lumwana Mine in particular is that they took a political side in the last election with promises of continued non tax remittance from one opposition party. They are failing to come to terms with the reality that its PF still in power and could still be for the next 15 + years.
    That is Zambia`s copper, they can as well leave, other investors with purely business minds will quickly jump to such an opportunity.
    Tax should not be deferred unless the Taxman really thinks our mines are indeed not profitable.

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    • @martin, Those are LIES! The mines sounded this concern long before. If u have nothing to say just shuut up!

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  10. Yambayamba, I am also very concerned that the mines may actually make the government u-turn on such a good decision of mineral royalty tax. Our government needs to stand the ground and if these mine owners want to pack up and leave, please let them go instead of robbing us of our wealthy. Deferment is only for 3 – 5 years and then you have to pay up all the defered balance and this is what Barrick Gold doesn’t want. They want the government to recede the increase in the mineral royalty tax. We seriously need to grow back bones if we are to earn enough money to change our economic outlook from our copper as a wasting asset before it is plundered completely.

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    • What have the north westerners benefited even if u pipo from distant lands are complaining more than the owners? It is our copper, not yours bamwisa. Let them close it.

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  11. This is an example to show that technical matters must not be politicized.

    Mining is a technically demanding and very complicated business.

    They should have consulted industry and not Dr Mpande. lecturers are by no means experts.

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    • @tutu, u were reading my mind. You r correct. Pipo like mphande are just academic. They know nothing. Maybe he can use his knowledge in a quarry in his chiefdom. Mining is complex and most of the pipo are just yapping. I back Barrick on this one. That 20% royalty is madness!

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  12. Mines should pay taxes.Mrs Mwanakatwe seems to be a wrong chap in ministry of commerce.I hope she is not corrupt.We don’t want mines to go without paying mineral taxes.She is too week according to pipo’s assessments.Zambia should benefit from these mines period.She can’t say taxes can be deferred until mines start making profits.who can say i’m making profit now?kikikik this country is full of empty teens bunda bwafisungu mukanwa. Zambia needs men n women who know mathematics and sciences otherwise if a country is headed by professors of theories then it will be a failed state.I’m sorry.

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    • Talking about theories, one name quickly comes to mind, Akashambatwa Mbikusita!

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  13. The usual waffling bla-bla-bla without any new ideas to realign the nation to new emerging trends of conducting world business. We are doomed to continue being exploited with mediocre leadership.
    KKIA is an eye sore to watch without any progress, poverty is rampant in rural areas. Zambia has to wait another 10-30 years before any meaningful progress can be noticed. RB a corrupt person is in the saddle, pulling strings, democracy discarded and the entire nation is did not know what they voted for- RB running Zambia whether we like it or not RB is LOL. What a shame, hope Zambians will know how, what and who to vote for in the next elections.

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  14. Your Excellence let you not be cheated by the impending closure. Remember KCM pulled out of this country and we managed to secure the investors.We can as well sell our mine to the Chinese investors who are currently waiting for their withdrawal. Viva Edgar Viva PF

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    • @frans
      Did you read about the Chinese manager that was killed at the coal mine because they were mistreating the labourers and could not pay them? Do you also remember the 2005 explosion that killed 46 miners at China Non Ferrous Metals? And what about the 6 miners that were shot at Chambishi mine in 2006 by their Chinese superiors? Keep the chinese away from the mines, even in their country they have a poor safety record.

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  15. Is the Zambian Govt any different from these investors we are all condemning, that is, they also steal from the Zambians in broad daylight.

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  16. Headless chickens who have never worked for the mines, stop exposing your ignorance! EL now knows that when he said the new mining taxes are here to stay, the day he was being swon in was wrong. He has now been educated about the situation on hand and that’s why he is saying this. The mining situation is a complex situation requiring complex solution not the simplistic ” its our copper” theory some of you are parroting. Mining copper and other minerals is not as easy as going to dig groundnuts. That’s why the govt cannot run these mines and if any one of them closes, God help all of you ignorant people! Just shut up if you don’t know what to say! Let govt handle this by having round table discussions with investors.

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    • You right, but means must be found to sto faking losses by certain mines especially Glencole owned ones. The habit of changing ownership when tax concessions come to an end mus also be checked.

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    • @Na Bwalya

      Yours comment is the most sensible. The truth held by some bloggers here is far from reality on the ground. Nevertheless, if there are issues on tax then the government needs to provide leadership and policy by taking all factors into account by coming up with a win/win solution for both the government, the workers and the investors. If mining companies pullout the biggest loser will be Zambia.

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    • @19 Na Bwalya

      Frankly, after 50 years of independence, we ought to be able to take control of our mines.

      If investments in state mining were progressively made by gov’ts since 1964, Zambia would be Mineral Extractors per excellence. We should have (and should now do), invest heavily in running our own mines.

      Even if we had spent most of our GDP in that effort, we would be running nationalised mines to our own benefit.

      I bet most of these politicians are shareholders, they don’t lose either way.

      We need a ‘people led Revolution’ in Zambia. The people need to demand honest politicians with our best interests at heart.

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  17. FOR NOW THE GOVT MUST SUSPEND ISSUANCE OF NEW MINING AND EXPLORATION LICENSES.
    REASON: WHY CONTINUE WITH A BUSINESS THAT BENEFITS NO
    CITIZEN?

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  18. The Zambia Chamber of Mines is composed of Zambias, so they are the ones who should know both sides of the coin.

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  19. Only closure of the mines will make these muppets to reverse this silly tax. They only reversed SI33 and SI55 after the Kwacha became the worst performing currency in the world. That’s their modus operandi – make ridiculous regulations and then wait for consequences.

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    • We are not only poor but devided. So called investors have always used this loop hole. It is a catch22 situation- close the mine and the already enormous unemloyment levels will swell 3 fold- no we cant accept that. Next concede to their demands – we lose out as a country and will FOREVER depend on IMF for our infrature development. Mines were privatised some 20+ years ago and if people were serious we could by now have a common ground. When the windfall tax was introduced during LPMs time mining companies were informing the employees that the tax would force them to reduce labour and indeed Mopani did exactly that . HE WHO PAYS THE PIPER CALLS THE TUNE

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  20. Deja Vu,
    Please do not be fooled. The Zambians in the Chamber of Mines are carefully hand-picked.
    Messrs Bantubonse, Mutati, Hamukoma and Kapobe all serve THEIR FOREIGN PAYMASTERS….FAITHFULLY, for their minuscule largesse!

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  21. This is what happens when a country is governed by directives as opposed to policy. A few weeks ago the all powerful president CHIKWANDA made a statement to the effect that the current mining tax ragime as where to stay and final. A day after the ppresident of state house is challenged on this issue we get an academic statement from statehouse which in its essence has not applicable merit. To defer these tax is to not tax at all. The conditions of deferment are too arbitrary. Now that the power struggle between the two presidents is on lets see who has the power and the interest of the nation at heart. President Lungu or President Chikwanda.

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  22. With their negotiating skills and the political and economic backing of their home countries over decades (if not centuries), it is almost impossible for our government to secure the royalties fairly accrued from our resources.

    Our greatest handicap still remains the lack of capital and technical know-how and equipment to exploit and develop our resources. Otherwise we would not be relying on these foreign companies to extract our resources and get giant shares while our people get peanuts.

    It is like your neighbour coming over to your garden bringing only a hoe and some knowledge and then demanding 90% of the harvest while you the owner of the garden gets only 10% from your own produce!

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    • @Nine Chale

      I like your analogy.

      Quote:

      ‘It is like your neighbour coming over to your garden bringing only a hoe and some knowledge and then demanding 90% of the harvest while you the owner of the garden gets only 10% from your own produce!’

      That is wisdom!

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    • Bakaamba, zowoona ai…ekomwaaba??…Nine Chale is a household name on LT from about 2007….God bless!

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  23. I am very disappointed.

    AS my non mine-mind understands this:

    Zero rating is back. Forget VAT Rule 18; no documents? Still get VAT. Mineral royalties; well pay only if you make a profit. Implied is you don’t if not profitable. My my what a merry go round!

    Also continue mining at speed of lightening to ensure you denude the country of its copper. Oh hey, the price of copper is down, …..meaning we are still trying to keep earnings at the same by increasing production during the time the prices are down. There is a loss there.

    Zambian gov’ts need to understand we cannot go on like this. Foreign get rich at the cost of our poor citizens. We need to make MORE from our mines than they do, for our development and to pay back those loans we exist on.

    Something is fishy.

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    • Something is fishy about this turn round.

      Frankly, after 50 years of independence, we ought to be able to take control of our mines.

      If investments in state mining were progressively made by gov’ts since 1964, Zambia would be Mineral Extractors per excellence. We should have (and should now do), invest heavily in running our own mines.

      Even if we had spent most of our GDP in that effort, we would be running nationalised mines to our own benefit.

      I bet most of these politicians are shareholders, they don’t lose either way.

      We need a ‘people led Revolution’ in Zambia. The people need to demand honest politicians with our best interests at heart.

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    • OH AND NEVER MIND THE CONSTITUTION. There will be some delays there!

      I AM FAST FALLING OUT OF LIVE WITH PF!

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    • OH AND NEVER MIND THE CONSTITUTION. There will be some delays there!

      I AM FAST FALLING OUT OF LOVE WITH PF!

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  24. @20 APPARATCHIK

    FOR NOW THE GOVT MUST SUSPEND ISSUANCE OF NEW MINING AND EXPLORATION LICENSES.
    REASON: WHY CONTINUE WITH A BUSINESS THAT BENEFITS NO
    CITIZEN?

    Now here is more wisdom!

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  25. Fellow citizens please be patient Lungu and the PF are still working on the “Modalities”. Lol by the way any info on where the Kwacha is trading?

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  26. Researchers in future will analyse the impact the late President Michael Mwakisata’s psyche ( His real name) had on the current political events, perhaps beginnng with his only known formal education in Karonga, Nyasaland (Standard 1-4) although his birth place was Tukuyu in Tanganyika where his father was working as cook after he left his Nyasaland home land, his dread for press conferences and his love of foreign spies; Scott being the only ever British M16 operative to have run an African state post colonial independence and the wife to Scott also the only CIA officer to have ever achieved a ‘ first lady’ status, etc. Even ZWD has failed to get to the bottom of certain matters.

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  27. Lets consider the “‘tail risk”‘ in those projections as we consider impairment review in those cash flows taking the sensitive’s on each mining structure and see what impact

    If you are paying interest and your EBITA is something before the royalties ,it may tricky to advance any reasoning not to pay royalties

    But the mining is a long-term development with scenarios build over a 50 to 100 yrs. especially in the case of new green fields

    Again is the cost in capital structure of debt is not “”tax exempt”‘ to insulate those costs in royalties arising ‘ What will be the effect of those scenarios Can we say its only operational

    The deferment by ZRA is good though given…

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  28. Be reminded though since in time memorial Good things around the world like the Harvard Schools, the London economic schools and the best scholars have been traced to have been developed using the massive dollars from Zambia’s copper fields including one of the best homes and residential houses and offices in one city across the oceans living ichilongoshima mu Zambia a big “‘tunnel empty”‘ as we sing the same old song of investor confidence and tolerance

    Yes its time we did a win win win situation

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  29. We should also be careful with those calling and putting pressure on Gov. on mining structural issues You cannot be an advisor both side and keep a straight head, you will compromise one and like the other especially were you are paid for trips abroad and fees for the same mining firms you seek to pressure Gov. to revise taxes and royalties

    Its time Gov. worked up and saw the other side of these economists and mine workers union and see what they are really representing tangling job losses at the core when really they are paid for allowances in trips and remunerated in donations and other for the pressure including consultancy fees like one professor leading the pack” ‘

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  30. Dr mphande is an old man full of controversy.a wise man cannot consult him on any thing. He will misslead the masses.gentleman the truth of the matter is that production in the mines is coming to a hault coz our ore body is 90% waste as a result of bad fiscal policies.its no longer economical to do mining in 90% of our ore body.if u doubt check the daily production numbers today, compare with the same period last year. U ill know wat I mean.this is a sensitive issue which requires an intelligent approach.if grz has run out money, find other means of funding yo economy.else u ill spoil everything.austerity measures are at peak and pipo will lose their jobs and gov will not defend anyone.

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  31. Yaa

    I am sure the MUZ and others declare reservations and interest but make sure you attend this summit and learn lessons to support GRZ and Mining firms when its ethically correct to have a win win situation like President Lungu said

    Barrick and vendetta CEO and Strategists will be speaking and often speak their accurate analysis at such fora just line we heard them speak recently in cape town It helps to reconfirm your analysis and understanding on mining sector in Africa and Zambia accurately.
    Muz should participate:

    Here:
    Steve Wade
    Global Project Director – Extractives Ethical Corporation
    t: +44 207 4224361
    e: [email protected]

    “6th Annual Responsible Extractives Summit
    London 2015…

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  32. President Lungu is also falling in the same trap his predecesors have fallen. Zambia has run mines before, profitably. By now the Zambian Govt should already have registered a Govt parastatal Mining Company to compete with these private ones. South Africa has a Govt Mining Company. SET RULES on operations and TAX issues. Those who don’t want to follow let them go. When they go our Govt Paratatal takes over operations & keeps (infact increses) the Jobs. On a permanent basis, not on a temporary basis that u r looking for other investors. No! Let us not be tricked by a smo group of pipo that they will close the mines. Let them close. Govt has business in business. Govt is doing business world over – in Airlines, Infertilizer companies, in Arms companies etc. Let us not be blinded folded

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  33. It is called “power of negotiation”…all multinationals are just too good at it, as they hire and pay handsomely some guys employed for nothing else but to negotiate business deals…( they are highly specialized in figures and financial modelling)…..wapya munzi….and what is Edgar going to say on the Amour of Figures and Numbers these guys are just too good at and have been looking at from the day they invested in Zambia ..Edgar is just specialized in text and contexts (the only thing lawyers look at)…….and all of you who think PF will effect the new tax regime, just eat ECL’s teeth. Besides all of you here (maybe in excerption of one or two bloggers) dont even know real-time mining economics, its every day complexity and recapitalizing such huge investiments..Continue…

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  34. Mining like any other business should take planning and risk management seriously and allow Gov. to provide the conduisive environment to support those business ideas

    Planning should be over the horizon, with local insurance and financial cover in those premiums for those risks to ensure local reaction to eventualities unlike the current external

    Being Socially responsibility and even in low commodity prices environment not necessary reducing forecast but even improving social performance

    Dr Mphande spoke at a recent lecture in SA we were in attendance but need to add meat to the bone and drive home with concrete True is always straight especially involving 3 party for these mines

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  35. So then is it not that if you are a mining expert with huge expertise and experience in mining projects You surely failed to forecast and build in the scenarios that at one time Your “”your break even”‘ as a result of sales risk, operation and Financial risk will go either way

    Sales as in price and volume

    Operation as in your fixed costs

    Financial as in your Financing costs

    Anything outside the normal is a shock manageable by proper insurance and risk management unless its a calamity or is “‘Force majeure”‘

    There forward and future deliveries of copper and prices on the renowned world commodity market well projected as reference point for budgeting and forecasting as…

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    • @ Jonathanmhango Financial Analyst….love you thread….somegreat posting, right here….ndise bang’ono…. but you know insurance in Africa, is generally percieved as an additional expense by multinationals , and as such many dont even insure…talking from experience, I doubt if Lumwana is …..If companies can cry over VAT refunds (even in the absence of required documentation because price transfers) as though it was there only working capital???? Khikikiki

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  36. The tail risk as it where

    When you look at the similar mining operations and bench mark and see their reaction, is it the same reaction???

    Looking at the financials and doing simple DuPont financial analytics, the decision to defer is even much more lenient and if somehow prices rebound, assuming next august 2016,what will be the story for some mining company quoted and filling returns on some financier and exchange after the restructuring

    Will they be saying we are recouping the restructuring cost we incurred before and when we resume normal capacity we will increase the Job numbers

    Its better to manage normal risks than restructure to come and restructure its…

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  37. Guys,
    An astute CEO monitors the pulse of his company. At any point in time, he knows how his mine is performing. At mines I’ve worked at since 2004, by 10:00 the following day, we could predict how much profit (or loss) we made, to within 10%. When a CEO knows that his mine is now profitable, suppose he restructures, and renames the mine, UNDER A TOTALLY NEW ENTITY…WHAT HAPPENS TO THE OWED REVENUE TO ZRA?
    Luanshya Mine did this. When bought in 2004:
    It was under J&W investments
    Within 2 years it became Enya Holdings
    A year later, it was ENRC
    All part of the same group, management, assets and workers.
    Was this a ploy to defraud GRZ into paying taxes?

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    • @ Concerned Zambian in the Diaspora….it was a ploy to defraud GRZ…and they did that knowing their tax breaks were about to expire….remember also, how many times have certain mobile providers renamed themselves?/?…it is for the same reason…I am still calling it Zain, my niece tells me “oh noooo, uncle no, that’s airtel!

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  38. When you look at sources of capital for infrastructure investing be it from private equity or public , development finance sovereign and wealth funds to corporate balance sheets and commercial debt ,the costs being talked about are a projections in a normal business make up and is factored in that cost of capital on spread sheets

    Appraisal of capital projects is very thorough before a recommendations is made to those boards or investments boards forming those companies

    Those IRR,NPV/CFO and the rest in those profitability indexes

    The costs are normal cost of debt and should be regeared and ungeared to comparable to see the effect in those betas/risks

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  39. If these so called investors feel they are not making any profit, sale the mine to others who will make profit not rushing to putting the mines on care and maintenance. These whites are crooks, they want our copper without paying anything to the government, its our copper and they should pay the 20% tax. If they don’t want to pay let them go back to their countries where there is no minerals like what we have.

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