And Mr Yaluma says Zambia will regain its top position as Africa’s biggest copper producer as most of the challenges that unsettled the mining sector had since been resolved.
The mining sector has been rocked by frequent changes in the mining fiscal regime, which has disturbed operations and profitability.
The Mines and Minerals Development Bill, 2015, which contained the provisions for the revised 2015 mining fiscal regime, passed through Parliament in July, 2015, following changes Cabinet approved in April of that year.
The changes of that regime saw Mineral Royalty Tax (MRT) for open cast mines pegged at nine percent, brought down from the previous 20 percent, and six percent for underground mining operations.
The mine tax system also re-introduced a 30 percent corporate income tax on income earned from mining operations, while corporate income tax on income earned from mineral processing at 35 percent, which took effect from July 1, 2015, mid-way through that fiscal year.
Mr Yaluma explained that following extensive consultations from the time the latest fiscal regime was introduced and implemented last year, the Government anticipates to hit its mining tax revenue targets this year.
He said during a tour of Kansanshi Mining Plc’s open-pit mine in Solwezi recently, that Zambia would regain its top position as Africa’s biggest copper producer.
Last year’s total copper production of 770,588 tonnes from 710,860 tonnes in 2015 means Zambia remains behind the Democratic Republic of Congo (DRC) who are Africa’s undisputed top copper producer having mined 986,582 tonnes of the red metal in 2016, according to Reuters.
Despite having recorded a five percentage drop year-on-year, the DRC maintains a healthy lead over its southern counterpart, with its output for 2017 certain to continue climbing in view of rebounding copper prices on the international market.
“Yes, Zambia, I am very sure will regain its number one position from Congo. We knew exactly what hit us to backslide in second position; one of it was electricity constraint; the second one, we had some problems with our own [mining] fiscal regime. Those things impacted on the performance of the mines and we have realised that we should have done much better than we did,” said Mr Yaluma.
“With all this now normalised, dialoguing with the Chamber of Mines regularly; whatever we feel like a change in policy, we must sit down and talk about it and discuss so that we don’t do something which will upset the industry. We are also not saying, ‘we should give away’, we should talk and both ensure that we all win, at least we get what we want, so it is give and take.”
Wise words Hon Minister
Just pray miners will not participate in HH’s cases.
I pray for a good man Yaluma to leave PF and not participate in stoning UPND leaders.
Totally lies from Yaluma. 1. MRT was not introduced last year. MRT has always been there since colonial days. It is PF who played around with MRT from 5% to 20% under a misguided belief that there were huge profits to be ripped off in copper mining. 2. Zambia will never ever beat the DRC in copper mining. DRC has richer and shallower deposits. DRC has increased production from 35,000t in 2002 to almost 1 million tonnes now while Zambia has increased from 220,000t to 750,000t over the same period. #LiesByPF
“whatever we feel like a change in policy” thats where the problem hinges.. whenever someone comes up with an idea out of the bedroom you want to effect it without careful consideration. under Mr Sata, you same Yaluma drove the proposed 20% mineral royalty and cabinet approved..that would have been a game changer but under unstable ECL, you again made changes and dropped it to 9% who does that..Congo is top because there is no nonsense there. why do u think FQM stopped mining at frontier and Lonshi mine???
MRT at 20% was only a gamechanger in killing Zambian copper mining. It was never sustainable. It was a fooolish policy.
I have faith in the great PF that they will look after us normal people and know they will make sure the resources of our great land will be given back to us. I dont have faith in the current president to loom after us, we need to get back to the true PF with the bemba in the lead to make sure we get looked after. They stand up the big international companies, not like weak lungu.
The Bembas brought the mess of chaotic mining tax changes that have ruined Zambia copper mining. These criminals should be kept from govt at any cost. I support Lungu on that one.
You can’t tax your way into prosperity. Produce goods and services of value
DRC even with a war on, projected to beat us?! With one hand tied behind! Something’s not right in Denmark as they say…
It’s good to see MRT, corporation taxes back on, BUT at 30-35%, a little too low. Raise to 60-65%. We should take the lion share of profits! We provide the land and copper after all.
Raise taxes and then what? Even if you had Saudi Arabia’s oil and Botswana’s diamonds, Zambia would still be poor, if not poorer. Natural resources are a curse for useless countries like Zambia with WEAK easily-compromised institutions.
This is a dull minister a real empty suit!!
Patriot abroad, take the lions share and why would anyone invest in this tinpot country.
Poverty-stricken people look for easy quick cash, thats why we have everone doing DEALS,
Friends have always got a deal happenning, drinking in the middle of the day but yeah I’ve a deal am just waiting.
Men of zambia work dont just talk and let your wives prostitute so you can have a girlfriend.