Mines Permanent Secretary Paul Chanda says media reports suggesting that Konkola Copper Mines (KCM) cobalt is exported without being taxed are false.
Mr Chanda said that Government is very much aware of the cobalt exports from KCM which is exported as an alloy rather than pure cobalt.
He said cobalt is exported as an alloy because of its low quantities and government does tax the commodity.
The Mines P.S has since encouraged Journalists to verify their sources of information before publishing.
“Journalists are encouraged to investigate before putting up screaming headlines,” Mr. Chanda said.
Some media reports have accused alleged KCM exporting cobalt worth about US$20 million per month to Tianjin Maolian Science and Technology Company Limited of China without Government’s knowledge.
KCM has also been accused of having exported cobalt worth US$1.5 billion to the parent company of Nkana Mining and Mineral Processing Limited.
And the National Democratic Congress has urged Government to immediately institute a committee of experts to conduct a financial audit at Konkola Copper Mines KCM.
NDC Secretary General Mwenya Musenge said the committee of financial experts be appointed from qualified officers drawn from the Financial Intellegence Center, the Central Bank, Ministry of Finance, Security Agencies and the Zambia Revenue Authority.
Mr Musenge said the said probe team must also include mining experts.
“As a party, we feel KCM is evading the payment of taxes and may be involved in other sophisticated financial crimes. As NDC, we are disturbed that the mining conglomerate has been exporting cobalt illegally to China without the full knowledge of Government,” Mr Musenge said.
“In March this year, we raised alarm that KCM was illegally exporting cobalt to China and Government brushed off our concerns. Revelations by Tianjin Maolian Science and Technology company limited that KCM has been exporting Cobalt to the firm has thus, exonerated the NDC. We are therefore not surprised that KCM has in the last few months exported Cobalt to China worth over 1. 5 billion united states dollars.”
Mr Musenge said there is need for an urgent explanation from the Zambia Revenue Authority ZRA on these illicit financial flows at KCM.
“As a party, we are aware that the ZRA constituted a Mineral Monitoring Team, which unit, tracks and monitors the activities of mining firms. The terms of reference of this team are very clear, as the unit was established to ensure transparency and accountability in the export of metals. Further, ZRA, has officers seconded to mining firms. Therefore, news that KCM has been exporting Cobalt to China, unnoticed is inconceivable and opens up room for speculation,” he said.
He added, “Could it be that some officers within the ZRA might be involved in this scam? Or could it be that some officials in Government are also beneficiaries of this dubious export of metals? As NDC, we demand for an express response from both the Minister of Finance and ZRA commissioner General. We demand that all those involved in this financial scandal at KCM be fired.”
Mr Musenge has since urged Government to ensure that KCM immediately pays all the taxes accrued from the illegal sale of Cobalt.
“And why is Government not ejecting KCM out of Zambia anyway? The truth of the matter is that KCM management can not be trusted. KCM has taken the Zambian people for granted and this firm can do anything with impunity without being reprimanded by Government. Like we said last week, Government should eject KCM from zambia. We cannot have a bunch of fraudsters stealing from our country in broad day light.”
It’s difficult to believe what the PS has said considering that KCM has always behaved in a manner not befitting the size of the business. When they just came they placed idols by the entrance and requested all employees to pay homage before entry to work places. I don’t know what kind of business they do. Even Binani used to behave the same, todate people of Luanshya haven’t fully recovered from the devastation that Binani caused. They’re weird people
Like you ever tell us the truth. Judge Chulu will one day have tell us how he was coming up with those numbers.
These Fools, its true and we have evidence. They use Bonded warehouses in Dar. Stupid leaders full of lies because they are part of it.
Bwana PS if you bothered to safe guard our resources you wouldn’t be begging from people who steal our resources. Lets hope you are not on KCM payroll?
Look at this chaps disk…really laughable…he even has radio but not laptop or desktop in that pile of mess.
have you seen what’s behind his chair before you chat sh@%???
I smell a rat. I am not going to believe the words of our PS, MORE SHOULD BE DONE to bring back the confidence. Is our Cobalt of low value?to be exported as an alloy. ZCCM must answer this Question.
@3 Mangaliso, IN FACT WHY NOT FORCE THEM TO REFINE IT SO THAT WE CAN REALIZE THE TRUE VALUE OF WHAT IS BEING EXPORTED??
Ba Chanda,you are always seated comfortably in your office taking and giving orders.How much knowledge do you have about how much Gold and Cobbalt that leaves Zambia?.
Most of you guys are either dull or turn a blind eye on what is on the ground to benefit your pockets.
KCM has also been accused of having exported cobalt worth US$1.5 billion to the parent company of Nkana Mining and Mineral Processing Limited.
These reporters! You don’t EXPORT a product from one local firm to another
Which government worldwide can own up when it has been caught pants down? In this case, I’m sure the government will write on the ground ,”let he who has never sinned be the first to cast the stone at government”. Jut thinking.
People,
Just to clarify and state a few facts about Cobalt prodution in Zambia!
KCM in its present form does not and cannot produce cobalt metal. Cobalt contained in concentrates from Nchanga Mine used to be out turned into metal at either Chambishi Metals or Mopani’s Nkana mines.
With the cessation of ZCCM, cobalt contained in concentrates from Nchanga Mine was produced on behalf of KCM through the toll treatment agreements by the two mine sites until the period between 2008 and 2012 when there was a dramatic fall in the price of cobalt and hence a corresponding fall in production quantities.
During this same period, however, there was an upswing in the copper price. KCM stopped sending concentrates to the two mine sites to recover the cobalt and instead started to maximize…
…copper production. This meant that the contained cobalt in concentrates ended up in the smelter slag. It is from this slag that cobalt is recovered. Not as pure cobalt but as an alloy.
During the decade 2002 to 2012, the highest cobalt production in Zambia was 11300 tonnes in 2003. Now, when you hear figures being bandied around by NDC et al of $1.5bn worth you wonder where they get consultancy or intelligence! At the current dizzy price high of $64400per tonne, this would be equivalent to over 23000 tonnes of cobalt! Not true…
#2.1 Solye Ubwali, yes tell that tri.bal Lazy Jay Gay. His reaction and comment is only because of the name Paul Chanda, that he is bemba monkey as trib.al Hacks would say. Lazy Jay Gay is blinded by trib.alism that he cannot see the desktop hehind the PS, less still he cannot see the thin modern Laptop, on the desk right in front of the PS. But this trib.al cretin!!!
The stro
The story of cobalt exports to that magnitude is no more than a sensational false report of course. A few days ago the CEO of KCM did say that they want to increase cobalt production too because its price was now quite high. So it is not a secret that KCM does produce some cobalt.
However what is not in dispute is that KCM owners are scoundrels who should not be allowed anywhere near Zambia, not even in Tanzania or Malawi! These are thieves not miners or investors, just plain common thieves.