Minister of Mines and Mineral Development Kalombo Mwansa has attributed the growth of the Zambian economy to the attractive investment climate in the mining sector.
Dr Kalombo Mwansa said added that the good policies put in place by government had also played a significant role in the steady growth of the economy saying economic growth cannot be achieved without good government policies.
He said this during the official closing of the Africa Mining Congress organized by the Mining International Natural Resources Enterprise (MINE LLC) at Zambezi Sun hotel in Livingstone yesterday.
He said Zambia was doing very well in mining activities adding that this was proved last year when it scooped the ‘International Country Award for Outstanding Achievement for a country that has shown the most improvement in terms of attractiveness to mineral investors during the 2006/2007 period.’
Dr Mwansa said the objective of the congress was to enhance cooperation among developers and financial institutions and hoped that it would be a fixed feature on the calendar of local and international mining companies.
Meanwhile, Secretary to the Treasury , Evans Chibiliti has called on all mining companies alleging that the new tax regime translates to a 60 percent tax rate to submit their financial models to government for proper clarification.
Mr. Chibiliti said government had formulated a solid financial model that translated to a 47 percent tax rate before increasing mine taxes and all mining companies that had models that reflected a tax rate of 60 percent needed to meet with the state to see where they had gone wrong.
He was speaking in an interview with ZANIS in Livingstone yesterday.
Mr. Chibiliti said all companies with project proposals that were made before the increase in mineral royalties could still proceed and make a profit as long as they clearly understood what to include in their financial models.
However, the Secretary to the Treasury was happy to note that some sectors in the mining industry had welcomed the new tax law saying it was reasonable and could be supported.
He said government was of the view that a fair and balanced tax law for all parties concerned was key in sustaining the mining industry as it reduced the motivation for any of them to change it.