Government is holding a closed door consultative meeting with the Chamber of Mines and all the mining companies on the proposed electricity tariffs increase.
Ministers of Finance, Mines and Energy are representing the government at the meeting in Kitwe.
ZESCO has proposed to increase electricity tariffs for bulk users, a move which has not settled well with the mining Companies.
And Minister of Mines Christopher Yaluma says government wants to sell its rationale behind the proposed increase to all stakeholders in the mining sector.
Mr Yaluma said government also wants to hear and address concerns being raised by the stakeholders in the mining sector.
The Minister is expected to issue a statement at the end of the closed door consultative meeting.
There have been calls from various stakeholders on the need to review tariffs for bulk users in the Country so that they pay competitive prices for the power they consume.
I am PF , but if the govt want the mines to pay lower than residential customers, then I fear for my country. The move may be disastrous.
Most of our problems in Zambia are centered around the IQ. I am afraid it is very low . Ever wondered why foreigners come and make it at our expense. As a people we have we no stance ,no standards.
Foreigners are into everything cement, sugar,copper production to mention a few but us the locals are into nothing.
The mines already pay less than residential customers. Far less!
…FAR, FAR, FAR LESS!
The mines will simply say we will relieve 100 causal miners…Christopher Yaluma will simply give them a 5 year discount like they did before.
A simple calculation shows for all Kwacha-based costs for Mines from 2011 when the dollar was at 4.8 K Rebased and now at about 9.6 K per dollar HAVE BEEN HALVED IN DOLLAR TERMS WHICH MINES MINT.
SO LET’S NOT BE BLACKMAILED Again.
This is a tricky situation because the mines might have very strong bargaining power. This is based on how the deals were initially signed. If the contracts contain certain incentives that government promised they would offer, then we shall have a problem convincing them to accept increased electricity tariffs. The problem is with how the investment contracts are done. As Zambians we have not benefited the way we are supposed to benefit from our minerals because those charged with the resposnibility to sign these deals usually get compromised when they are offered bribes or inducements to draft coontracts in a certain way. Even the electricity tariffs, government may not have a say. The mines will just threaten to fire people and government will start shivering.
The govt has always been so softy with the mines, I don’t really understand why the mines have failed to build their own generation station when smaller companies like dangote have done so. As zambians we should not blem any one but ourselves for this rubbish
More tax parachutes, tax relief and discounts all in our name and behind closed doors …this is Africa.
Buying power at the right tarriff is not negotiable, after all even the Donors have been pushing for this corrective move, so why then should mines be exempted. They already enjoy other massive incentives, and incentives cannot be endless, it must be may be the first five yrs not the life span of the operations. This is the only foolish country that allows this. Worse still they cheat on exports and on claim of VAT
Why CLOSED DOOR MEETING ..time and time again we have been given the short end of the stick because of such negotiations in the process lost billions in taxes….surely what good would come out from negotiations with Christopher Yaluma and these saavy Global Mining CEOs.
Closed door to keep away regionalists Cadres
Could not resist the bait
Sorry.
It is annual eating time. These closed door meetings will produce nothing tangible. Meantime there will be visible happiness as asset declarations unashamedly rise and new relief measures in terms of a ‘transition to the increase’ is instituted. This increase, like the tax holidays, will go on for much longer than a transition should… this seems hypothetical but just watch this space.
Yaluma is a wrong choice for this job…no malice intended here!
I see many casualties if these closed doors get locked?
LOOK THESE MINES ARE TURNING THE HEAT ON WORKERS ….THIS IS KILLING COMMUNITIES…..
Iwe zesco all consumers must pay correct reflective tarifs, nobody pays enough.
DO NOT ALLOW MINES TO TWIST GOVERNMENT’S ARM AGAIN. LAY YOUR CARDS ON THE TABLE, ITS TAKE IT OR LEAVE IT. AFTER ALL MINES HAVE THE CAPACITY TO GENERATE THEIR OWN POWER. IF THEY THREATEN TO LEAVE, LET THEM GO, IT IS NOT THE FIRST TIME – THEY DID IT UNDER MWANAWASA BUT DID WE DIE? NO WE DID NOT
And when is Govt going to have closed door meeting with local Zambian citizens about the impending electricity Tarif increase? Or maybe the local citizens do not matter!
They know Zambians are docile…if you ever find out what is in those Development Agreements signed by the mines with our Govts you would die of shock!!
Please let’s forget them and sleep on our minerals until the appropriate time and that hardship we shall undergo will pave our way to set on agriculture. This little revenue we yield from the Mines has been reducing our seriousness in agricultural implementation.