The Zambia Chamber of Mines, a body representing mining and allied industries in Zambia has welcomed the directive by the Republican President, Edgar  Lungu to the Ministers of Finance and Mines, Energy and Water Development to effect changes to the 2015 Mining Tax Regime by 8 th April 2015.
In a statement released to the media, the Zambia Chamber of Mines said that they are committed to working with the Government to finding solutions that will allow them to sustain operations, protect jobs, support local communities and contribute to Government revenue.
” We note that from inception the Republican President has been committed to fostering the sustainable operations of the mining companies, as seen through his resolve to guide the line ministries, including the Zambia Revenue Authority on the issue of Value Added Tax Rule 18(b).This will surely help to continue contributing to job creation and poverty alleviation.
The mining industry represents more than 86 per cent of Zambia’s Foreign Direct
Investment. This investment is critical for increased capacity and production levels in the mining industry, and is fundamental to the development of growing economies such as Zambia.
It must be emphasised that the Zambia Chamber of Mines has met with Ministry of Mines, Ministry of Finance and Zambia Revenue Authority on a number of occasions both this year and last year. These positive meetings have served to produce a useful dataset which allows both industry participants and Government to benchmark the current state of the Zambian mining sector.
The Zambia Chamber of Mines is committed to working with all stakeholders to put in place a tax system that will:
1. Increase revenue to the Government coffers for social and economic development on a sustainable basis,
2. Encourage investment in the Mining sector for sustainability of the industry and security of direct, indirect and induced jobs,
3. Be predictable and stable to enable long term planning by the mine operators and potential new entrants into the industry,
4. Encourage efficiency in the Mines by optimising cost profiles
To this effect The Zambia Chamber of Mines and its members maintain their recommendation that the 2015 fiscal regime is deferred and the 2014 fiscal regime is
reinstated whilst a more amicable regime is negotiated with all relevant stakeholders.”
Mining is a dead industry and one day it will be gone. It’s probably a a good idea to explore other long-lasting industries such as tourism and agriculture.
The sad thing about Mining in Zambia is the mineral is dug out of the ground and quickly it leaves the country. We must accept the fact these companies are private and only interested in growing profit for their parent companies and hence have no incentive whatsoever to develop the country in anyway. We need to process and manufacture something out of this copper mwebantu. Even small electrical devices can be manufactured in Zambia. This would create jobs and we would benefit from our minerals. But then this would mean that GRZ or any private company that is set up would have to buy the copper from these mines process it and make a finished good. To say that this is our copper is just an illusion. It belongs to the companies that mine it. We sold the mines because we failed to run them.
You have the wrong conception. There are still vast reserves of copper in the country. Natural resources are still the engine of Africa’s development and growth.
Whilst tourism and agriculture are more dependant on environmental and socio-economic factors, mineral wealth is a readily available national capital.
Looking at the accompanying picture, out of sixteen executives, only one is black, if Zambian i don’t know. does it mean that of all these years we have been mining giants we have no capacity to produce qualified personnel who can been executives? yet we say we are independent.
Shut up KK wanted to give you what you are yapping about now and what did he get out of it.You called him fonkonko……go and farm and forget about mines.
How do you conclude that the people in the picture are the company executives. For all I know, and I am sure I am right, these were merely visitors to the mine on a tour of the pit. You can not tell from the picture for sure, if all these people work for KCM, I know coz I used to work there.
My problem rather, is with the caption itself. People posing under a truck does not show KCM pit operations. If it were a shot of the pit itself with trucks going around their business, yes then one would use that caption, just saying.
Okay fikala fyenu, for now, mwapusuka but ni copper yesu iyo mwaunfwa. We want a new tax regime ASAP. You are stealing our money. Next time even if the kwacha plunges, we will hound you out and nationalize the mines mwaunfwa ayini? Muleiba sana.
Symptoms of brainlessness.
The problem is not the mines, the problem is Zambians not fostering uncommon thinking of entrepreneurship. Let that happen and the mines shall have no leverage.
I think the Zambian education system should introduce courses on “patriotism” and the “love for Zambia”. Some of the comments that come from representatives of the Chamber of mining border on lack of patriotism. Museveni once said, we cannot mine Uranium because we still do not know how to use it; so we will leave it there until our people know how to use it.
What are you going to eat.More than 86 per cent of FDI from mines?Very dangerous….lets go farming guys..
ANOTHER SAD DAY FOR ZAMBIA AND ZAMBIANS. THIS IS WORSE THAN COLONIALISM. NO ONE ELSE IS TO BLAME BUT OURSELVES FOR ELECTING HOPELESSLY INEPT PEOPLE TO LEAD US.
COPPER IS OUR ASSET, HOW CAN WE LET OTHER PEOPLE TO JUST GET IT FOR NOTHING? IT IS SADDENING THAT SOME PEOPLE WILL EVEN REJOYCE AND PRAISE THE PRESIDENT FOR THE PATHETIC DECISION TO REVERT BACK TO THE OLD TAX REGIME UNDER WHICH ZAMBIA WAS GETTING CRUMBS. WE ARE A HOPELESS PEOPLE.
HH, PLEASE SOLDIER ON, I WILL SUPPORT YOU!
This has become a Tom and Jerry affair, GRZ should have considered all the options and they were supposed to have a plan B in place.
I guess we must learn to vote for competent people with a vision rather than vision-less leaders who are mere reflectors of other people’s thoughts.
Ceteris paribus, this is the result of having illiterate people making decsions for us because the educated are out numbered when voting.
Malabishi……isnt this the same reason you voted MMD out.Now you have gone back to the vomit.Sit down.Anyways I applaude EL to have made this decision…..very smart move.Not Chikwandanomics of an old finished calculator….
its incumbent upon the president to hire qualified people who will stir the development of the nation forward. The most important thing is how E.L is going to handle the Economy of Zambia going forward.
This is not the time for window dressing techniques.
Why is it that after 50yrs we do not have indegenous zambian investors in the mines. SA has Motsepe, Ramaphosa, etc. Just wondering.
That’s the key aspect. If only at least 40% of our mines were in the hands of the state or Zambian enterpreneurs, we would not have this worrying scenario of unequal partnerships.
It is not too late for our government to start looking ahead and laying the foundations for the next generation of Zambians to easily gain management of the mines.
Waiting for statement from president Chikwanda before I comment. Lets see who represents the people of Zambia. We encourage government to find a mutually amicable and lasting solution. Giving in to everyone of the demands made by the mining companies is not in our best interest. ABC CHECK!
BEIJING, March 25 (Xinhua) —
More than a year after the successful launch of the China (Shanghai) Pilot Free Trade Zone (FTZ), additional FTZs are preparing to open as China pursues reforms to invigorate the slowing economy.
I hope we are also industrialising I do not think also the president commanded He advised to look into the Tax regime
Edgar Lungu is the last hope in the line of Presidents to come before we cross the street and say happily thereafter but if not will be swimming trying to reach an ever shifting show on the other side in as much as we support good foot marks
Its a balanced score card here in Revenue allocation from mining taxes to others in the sector
AAA 0.06%
AA 0.12%
A 0.27%
BBB 1.02%
BB 5.42%
B 10.43%
CCC 29.68%
CC 37.74%
lets see broader and avoid falling in the debt trap See the rating default as rated by rating agencies
A wise man will always see the cycle and up his revenues to ensure He is well convered in “”reserves”‘ A poor man will see the shorterm and fail to see the bigger picture .
Avoid being strangled when you are healthy to breath to work and become self sustaining
What is said is often not true unless confirmation and in a broader view
We support what is right and in the best interests
Zambians are we sure of ourselves and do we really know what we need to do to move this country forward.Agrawal said it all and surely is this our payback. The day Zambia will stand its ground the way Botswana does then the country will definitely move forward. My countrymen surely lets be patriotic on such issues. Personally I do not support the stance the government is taking on this matter. Its better we relook at the privatisation set up, surely the 51% and 49% arrangement would be the most suitable going forward. If we do not agree with the current investor, lets find other investors that would appreciate that our country has to benefit from its own resources. Country men we should not feel ashmed of hitting the nail on its head the resources are ours and we should decide the terms…
Mining Copper in Zambia is a waste. We the owners are not getting enough from it.
People should be passionate about it but Zambians only care about being ‘given’ things in return for the Investors robbing us blind. Trouble is Private individuals are also in cahoots with these bandits. They too are making it difficult to impose stricter regimes in Tax collection.
There must be some gov’t ownership percentage, or majority share Nationalisation. As it is, Revenue from Mines is list to a few.
Well have two choices, first is to have these mining companies reevaluated then offer to buy whatever percentage we would like to have locally owned. If no one can come up with the capital it takes to fairly buy in to the level of stakes that we find acceptable, we then have to fairly explore the royalty option. What we need to have clarified by government is how the agreements where initially drafted. How often were they agreements meant to be revisited. What index was meant to be used in valuing output and how was taxation going to be handled? I get it we as the people want a fair share and this has to be done within the confines of the agreement as it was drafted. Our government can’t just say windfall tax today then when price goes down they willy nilly and say now royalty.
Believe me or not we ‘ve no option at the moment. Copper price is going down and dollar is appreciating and our economy has shaken. For now the status quo has to be maintained while looking into beta solutions. Western investment is meant to cripple developing nations bane. Either we increase our stake in the running of the mining industry or opt for Chinese investment.
Chamber of mines plse don’t be one sided you should also look at the way zambian miners are being exploited by this forein investers like this fqm f***s and their housing units. Their charging k1400 a 2bedroomed sub standerd house per month in kalumbila and solwezi kabitapi area yet when it comes to tax they are the first to cry
These chamber of mines fellows have know interest of mines and miners to represent If they did then Solwezi and Kitwe mining towns will be a show piece in Africa
Ukulwamo kwalichila and championing short-term interests very vocal supporting mines and not balancing the issues to ensure both parties are correct
They must have cheated president lungu
We therefore ask for a public disclosure on those representations to ensure we agree and follow to those decisions before the two ministers actually resolve to change the regime
Abash tammy chambers of mines eating with both hands