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Alba Iulia
Tuesday, January 21, 2020

ZRA commended for instituting Mineral output statistical system

Economy ZRA commended for instituting Mineral output statistical system
Copperbelt Trade & Development Forum (CTDF) Executive Director Vincent Lengwe has commended Government through Zambia Revenue Authority (ZRA) and Ministry of Mines for spearheading the implementation of Mineral Output Statistical System (MOSES).
Lengwe said the Mineral Output Statistical System (MOSES) is an intersection and a delivery mechanism of the MVCMP and the Mineral Production Monitoring Support Project (MPMSP) in the harmonization and enhancement of mineral commodity thorough a centralized and automated system which is  from the point of extraction up to the issuance of export permits.
He noted that the application of the XRF Analyzers at border points will improve the overall efficiency of the monitoring mechanisms along the mineral production value chain as it will not only verify the mineral content with the central server, but also enable Government to optimize mineral revenue mobilization and curb illegal export of non-declared minerals.
The CTDF Executive Director has expressed optimism that the successful implementation of the MVCMP and the MPMSP will greatly depend on the input, quality and coherence of primary data which still remains the core responsibility of extractive industry players.
Lengwe implored Government institutions to immediately consider implementing certain complimentary measures such as  the introduction of legislative provisions that will incriminate and revoke existing mining licenses of those that may attempt to feed the system with falsified data.
He said Government institutions should also improvise a progressive mineral export duty which will depend on the value added where for instance unprocessed mineral ore can attract up to 50% tax then scaling down to concentrates, blister copper, refined metal and semi-manufactured goods as opposed to the current flat rate of 15% as a practical step towards the promotion of locally manufactured copper products and industrialization together with the economic diversification process towards agriculture and other potential economic sectors.

“Otherwise, we call upon all stakeholders from the mining cadaster, PACRA, Zambia Bureau of Standards, Road Development Agency (CSO), Central Statistics Office (CSO) and civil society working on extractives to support this process with keen”

He also urge the ZRA Mine Audit Unit and the Financial Intelligence to also institute mechanisms of curbing mineral revenue leakages and illicit in-house or off-shore trading of Zambia’s mineral resources among extractive companies that cannot be detected by the system beyond export points”

“It is quite regrettable that since the year 2000, Foreign Direct Investments in the mining sector have presented more harm than good due to annual revenue losses of approximately US$3 billion which could have been directed towards poverty eradication, debt servicing, financing the national development agenda and also operationalization of a mineral wealth stabilization fund in responding to the detrimental socio-economic effects of the mineral commodity boom and bust cycles such as the recent 2015 global economic recession” Mr Lengwe said.

Mr Lengwe said Zambia being a signatory to the African Mining Vision (AMV) which is a blue print for good extractive resource governance, has finally managed to demonstrate its commitment towards Cluster 1 of the AMV on Mining Revenues .

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  1. GOOD OBSERVATIONS AND SUGGESTIONS Ba Lengwe!! The TAXATION OF MINERAL EXPORTS ESPECIALLY CONCENTRATES IS IMPORTANT and in some countries is based on percentages of mineral contents to maximise revenues and encourage value addition! Another issue is this: WHY DON’T WE EXTEND SUCH CONTROLS and MONITORING TO THE GEMSTONE SECTOR ESPECIALLY EMERALDS?? We need to manage this sector well, it may even have more potential for government revenue compared to copper where we have already messed ourselves up with bad agreements and are always caught up commodity price swings!!

  2. Mineral Output Statistical System (MOSES). Where does the E come from in that abbreviation? Shouldn’t it be MOSS? What is wrong with you people there is Zambia.

  3. Its funny how all these measures are being implemented after the Chinese, Indians have almost depleted our resources with the help of our leaders to the least benefit of our people, the average Zambian. Only a few have pocketed from the natural resources that Zambia and Africa at large have. Lungu is now a rich man and you wonder why he dubiously won the election? HH became a rich man after screwing Zambians with privatization of our companies. All these f00ls are crooks. Young men and women need to stand up against these crooks.

  4. you have to more than that ingots, glenco and other mining companies have been evading tax payment for years, now.

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