The private sector has advised government not to take over the operations of the mines in the country as it has no capacity to run them.
Private Sector Development Association, PSDA, Chairperson, Yusuf Dodia, has hinted that taking over the operations of mines can just result in over spending on the side of government.
Mr. Dodia was reacting to calls by a cross section of society that government should intervene in the affairs of the mines which are closing by taking charge of them.
He explained to ZANIS in an interview in Lusaka today, that government alone can not manage to operate the mines as it has other needy areas that require its attention.
He noted that if government goes aheard to take over operations of the mines in the country, other developmental projects would suffer as money would be expected to be channeled to the management od the mines.
He added that with this global economic meltdown other sectors are also likely to be affected and will therefore need government’s assistance.
He, further, added that government can only intervene by putting the mines on care and maintenance to protect the interest of local miners and cushion impact of the recent job cuts.
Mr. Dodia said there is need for government to ensure that the interest of miners are protected by ensuring that mines do not completely close while it is looking for another investor to take over the operations.
He also cautioned government to find equity partners that will not only take over the operations of mines but that will also ensure that miners that have lost their jobs are returned.
He also stressed that nationalizing the mines can have a negative effect on Tax payers as they can be subjected to high taxes as way of raising more money for effective operations of the mines.
Zambia is one of the country’s that has been hit hard with the global economic meltdown which has led to the failing of metal prices on the international market resulting in mine closures and hundred of miners losing their jobs.
ZANIS/MM/ENDS/SJK