Gemcanton Director Abudoul Ba second from Right at the Emerald Auction
Gemcanton Director Abudoul Ba second from Right at the Emerald Auction where a gross profit of US$15 million was realized from sales

Gemcanton Investments Holdings Limited , Zambia’s leading emerald miner has said that it is possible for any mining company to survive and operate profitably under the newly introduced tax regime.

Gemcanton Director Abudoul Ba said that there was nothing wrong with the decision taken by government to replace Value Addition Tax (VAT) with Sales Tax for the Mining Industry.

Mr. Ba said that it was unfortunate that some mining companies are threatening jobs cuts and suspending future development projects over the change in taxation regime.

Mr. Ba told ZNBC News in Lufwanyama that the changes made to the taxation regime should not come as a surprise because the taxes were already there.

Mr. Ba urged mines and all those in the Extractive industry to support Government over the new taxation regime which comes into effect on January 1, 2019.

Meanwhile the company which employs over 1,000 permanent employees has invested over 46 million US dollars in the development of a mine in North Western Province.

Mr. Ba said currently exploration works and other infrastructure development projects are being undertaken at the Mine site in Kasempa.

And Copperbelt University mining Expert Peter Chileshe has urged the mining companies to dialogue with government over the issue because the matter has the potential to injure the economy.

Professor Chileshe said that government and the mines must sit and find a common ground on the matter.

[Read 1,926 times, 1 reads today]
Loading...

26 COMMENTS

  1. Those are the positive comments we want. Together in development.
    Akainde’s Zambian Witch Doctor will label you a compromised PF cadre.

    34

    5
    • Edgar is the wrong person for such complex issues, he is commander in chief and fails to control his PF thugs. He cannot provide leadership for appropriate review of Public Order Act.

      5

      7
    • Guys isn’t it possible to have an objective discussion without mentioning HH or ECL? Am sure we can discuss the merits of Mr Ba statement without becoming political. But anyway….
      Thank you Mr. Ba. You are 100percent correct.
      I urge PF to hold firm and not buckle under the pressure from FQM, KCM and MCM. They bring in hundreds of “expatriates” and pay them 5 times better than a Zambian doing the same kind of job. But when they want to cut jobs, it’s the zambians who must suffer. The “expatriates” who make he most money remain untouched. This must come to an end.

      17

      0
  2. Edgar is the wrong person for such complex issues, he is commander in chief and fails to control his PF thugs. He cannot provide leadership for appropriate review of Public Order Act.

    5

    6
  3. For years these mining giants have taken advantage of our minerals. If they cant manage these mines please close them down and re open when you are ready, we tired of you making profits and not pumping money back into the local community. See you later alligator.

    28

    0
  4. That’s what we want to hear from investors. Not these thieving companies especially FQM, who are just threatening the government. We all know they are here to make money, but they surprised everybody when they proudly said they would downsize the production tonnages.

    6

    0
  5. These mines should just pay what’s due to Zambians, the govt shouldn’t cave in by way of discussions, that’s a no no

    6

    0
  6. While I support Abodoul Bah’s Statement, I DON’T trust him and his company that much! These foreigner Emerald Miners have also not been honest enough in their dealings,unfortunately they have mastered the trade of Emerald mining and trading as we Zambians watch them grow and our politicians beg corruption money from them, failing to introduce stringent accountability in the sector!!

    3

    1
  7. These are the type of investors needed in the country and not those that come with the attitude of twisting our government’s arm. State House should give an ultimatum for all mining companies to meet the new tax regulations or lose their licences in order to those that are willing to comply.

    2

    0
  8. Emerald is a precious stone and copper is a base metal so they fetch different selling prices. The mining methods are different. Therefore, their cost structures are significantly different . This is not a like with like comparison . This is a fallacy of composition by this emerald miner to say that it is possible for any mining company to survive and operate profitably under the newly introduced tax regime.

    6

    3
    • That is the point. An emerald is just dug out of the ground and sold and making such blanket statement is dangerous though MCM, FQM should also start by reducing the numbers of so called expatriates. Ministry of home affairs should help is this as well as other Zambian mining experts because the Job titles they submit to immigration when getting work permits do not even exist in the mines.

      2

      0
  9. This thief who has just lost a court case in Canada and has his assets frozen in that country knows that very soon all his shady dealings including selling emeralds outside zambia without paying royalties or taxes are soon going to catch up with him so he is trying to win favours by saying something positive in favour of the government.

    5

    2
  10. Mr Chileshe, what more common grounds are we looking for? If countries like Singapore had even one mine of copper, they would have built another Singapore above the one you see. One thing every Singaporean would attest to is the high tax regime in that country. We will not build even a public toilet if we continue this nonsense of giving in to investor black male.

    5

    1
  11. I have not heard from that boy Trib.al Hacks today and yesterday. You mean his latest “opposition alliance” project has fallen flat on its face as soon as it was announced? Typical of his underfive projects, the boy does not understand anything in politics, his speeches are especially dull and uninspiring, and his voice OMG!!!

    0

    2
  12. Mr DEMBA BA IS A SENE SENE WHO HAS BEEN EATING WITH ……..HENCE THIS IS A SPONSORED TALK LET CHINESE TALK WE SHALL SUPPORT NOT FROM AN AFRICAN AWE TWAKANA

    1

    1
  13. Mining Emeralds and copper cannot be at the same level in terms of complex production and processing minerals. Also, the challenges facing FMQ, KCL and MCM are not the same among themselves. Failure to understand the complex mine operations, market forces, what to do when copper prices go down or up, and when copper grade is low or high is what forced the government to sell the mines. ZCCM was incapable of finding ways to sustain operations, save selling the mines. If the mines were not viable, why would foreign companies buy the mines? Even in developed countries when their government increase taxes or sales taxes, the companies lays off some of the workers or suspend new projects in progress. The ball is in the court of the government to make a decision, since the mining companies have…

    0

    0
    • Your Mr Mateyo included the emerald mines in his statement and here is a Gemstones miner saying something different. Do you know that initially the Chinese owned mines had refused to join the Chamber of Mines the time Mr Frederick Bantubonse was general manager. It was after government intervened. They preferred to deal directly with government. By the way since you seem to know a lot about the complexes of copper mining can you please give us the cost of producing a ton of copper detail by detail from the breaking the rock up to metallurgical stage .

      2

      2

Comments are closed.