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Alba Iulia
Tuesday, July 14, 2020

Mining taxes negatively affecting mining companies

Headlines Mining taxes negatively affecting mining companies

Chamber of Mines Zambia President Goodwell Mateyo
Chamber of Mines Zambia President Goodwell Mateyo

The Zambia Chamber of Mines has described the production challenges faced by several mining companies as effects of the newly implemented new tax regime which it had objected at inception.

Speaking in an interview with ZANIS in Kitwe today, Chamber of Mines President Goodwell Mateyo said if government does not relax the tax policies, some mining companies will not be able to operate beyond this year.

Mr. Mateyo noted that some taxes such as the tax on importation of copper concentrates and the export duty had paralyzed operations of mines such as Konkola Copper mines, Chambeshi Metals and as well as Mopani Copper Mines among others.

He said mining companies that rely on imported copper concentrates were now failing to produce as importing concentrates has become unattainable.

He cited Chambeshi Metals which has completely halted its operations due to failure to import copper concentrates from the Democratic Republic of Congo.

The Chamber of Mines President said the introduction of Sales Tax which was non-refundable was also retrogressive to the mining companies.

He urged government to relax some tax policies to ensure the survival of the mining sector.

He said the relaxation of tax policies should include removal of the import duty on copper concentrates so that mining companies relying on imported concentrates can continue to import and sustain their production.

Mr. Mateyo further urged government to rescind its policy on replacing Value Added Tax by Sales Tax which is non-refundable among other measures.

Most copper mines on the Copperbelt are struggling with production and have resorted to implementing hush austerity measures which are detrimental to workers.

One of such mining companies is Konkola Copper Mine which has frozen all promotions, payment of overtime and weekend allowances among other incentives.

However, Mines Minister Richard Musukwa said government will not accept such austerity measures by KCM which deprive workers of their rightful employment privileges.

Mr. Musukwa said the austerity measures implemented by KCM do not promote production as required in mining because such allowances were the ones that motivate workers to increase production.

However, KCM heavily relies on imported Copper concentrates for its production.


  1. When the taxes were affecting them “positively”, they never used to cry. No, government, stand firm and don’t bend down low to their crocodile tears.

    • Mateyo you’re a fraud. Those same taxes you’re referring are been paid elsewhere were the the minerals are not even mined. Here in Aussie they pay those taxes with ease besides megga mining companies here are mining the less valuable commodity compared to copper. Get your facts right.

    • Do we really have the real mines or we have the so pseudo-mines that re-work Congolese copper in the form of copper concentrate.
      We want mines that will be exporting Zambian copper concentrates and not importing.
      So, for government stay firm !! Don’t be dribbled by this crybaby Mateyo, fake mines can get closed, who cares?

    • How is DRC which is a war torn country producing the concentrate and you can’t?

      VAT encouraged imports and now that you have to create a division within Konkola to produce your own concentrate you are crying wolf.

      How do you develop your own industrial base if you want to rely on imports?? In Germany, all BMW suppliers of components are all within 3 miles away from the main assembly plant.

      Same thing with Toyota at Toyota City in Japan. So, either start your own division or sort for suppliers within the country.

      We did it under UNIP and no concentrate was important for ZCCM. Lame excuse!!! Sell the mines if you can’t run them profitably.

      Epo mpelele,


    • Autocorrect is a pain in the you know what … meant to say no concentrate was “imported” for ZCCM.

      Ba Mateyo, please sit down!!!

    • This is how Africa was colonised. Sell-outs like Mateyo should not be tolerated. These infestors mascarading as investors should leave the mines and our minerals if the best defense they have is Mateyo

  2. Boma! Do not be compromised. Doing so is going back to 1890 when the BSA took over. They had enough!! They are busy calling political parties to SA in readiness for 2021.

    • Please don’t cry yet! There is 300% Hike in Electricity tariffs and mines are expected to pay more! Be ready to make bricks without straw!
      More popcorn please … This Zambia End Game movie is getting more interesting!

  3. None of this. Please let them go out of business and then nationalise. We need those taxes. And copper can augment our depleting foreign currencies. We need to get control of our mining resources and stop bleeding valuable income into Western economies.
    We are getting far too little mining income into our GDP. It can be a larger contributor to GDP, EVEN MORE THAN CURRENTLY.

  4. Why should KCM which is supposed to be running Konkola Deep import concentrates to stay afloat? The Indians when in Africa think of only trading. Instead of mining Zambian ore from the mines they own,they have resorted to importing concentrates to only refine and sell. In the end avoid paying mineral royalty tax as the ore is not mined in Zambia,avoid employing many people as there is less mining being done thus contributing less to the economy in many ways! All this is due to our corruption and mismanagement bcoz we can’t nationalize and run mines of we are failing to run lucrative sectors like power and telecoms.

  5. What are we scared of? Chile which is similar to Zambia in many ways, except on managing its resources, is close to being a first world. This is as result of being resolute and clear about determining its destiny. In my estimation there are certain issues we should never put up for debate.

  6. Zambian mining companies need to accept all changes as they have made
    Enough. It’s time to pay back.let them
    Follow tax system in other countries

  7. Problem we have in Zambia even those who are educated are on the side of the oppressors.

    HH stollen money took it offshore and many people still praise for that.

    Lungu building mansions in Swaziland and many people are praising.

    Chitotela has stollen and everyone is quiet.

    Kambwili has 27 big trucks proceeds of stollen money and many are praising him.

    I thought education makes people wise but no wisdom does.

    Many Zambians are educated but they are not wise.

  8. Those with bees in western, please send them to Mateyo. He is worse off than the late Mailoni brothers. He is out to betray the land and the people of his own.

  9. Its better to adjust the tax now. Otherwise Check the effect on the exchange rate in the next months.

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