Mine companies that fail to pay royalties 14 days after the end of the month in which the sale of the minerals is done will be prohibited from conducting further business outside their mining areas when a bill before Parliament is enacted.

This is according to the Mine and Minerals Development Bill 2008 which was tabled before Parliament by Minister of Justice, George Kunda on Friday.

The proposed law will repeal and replace the Mines and Minerals Act of 1995.

“Where the holder of a mining right fails to pay any royalty payable on or before the due date or any extension thereof allowed by the Zambia Revenue Authority Commissioner General, the Commissioner General may by order served on the holder, prohibit the disposal of any mineral from the mining area concerned until an arrangement has been made that is acceptable to the Commissioner General for the payment of the royalties,” the bill reads.

The bill states that any holder of a mining right who contravenes or fails to comply with an order given commits an offence and shall be liable upon conviction to a fine not exceeding five hundred thousand penalty units or imprisonment for a term not exceeding five years, or both.

In the case of a corporate body, it would be liable to a fine not exceeding one million penalty units.

“Where payment of any royalty is deferred, it shall be accumulated with any other deferred payment of royalty which is outstanding and the amount outstanding should be payable when the royalty is due,” the bill states.

It states that holders of large-scale mining and gemstone licences and small scale mining and gemstone licences shall pay a mineral royalty at the rate of three per cent of the normal value of the base metals produced or recoverable under the licence.

The bill is to be tabled in Parliament this week for second reading.

In the 1995 Mines and Minerals Act, a royalty is payable but calculated at two per cent of the market value of minerals, less the cost of smelting, refining and insurance, handling and transportation from the mining area to the point of export or delivery within Zambia.

Royalty payments could be deferred if the cash-operating margin of a holder of a large-scale mining licence falls below zero.

A chief financial officer at Nitrogen Chemicals of Zambia (NCZ)was yesterday morning beaten by angry workers who had assembled at the local Zambia National Commercial bank branch where they were waiting to be paid their salaries.

The incident happened after workers were informed by management staff at the bank that it was not possible to pay them their salaries because retirees had not lifted the injunction they filed through their lawyer, Mr. Keith Mukata, restraining the bank not to release any money meant for NCZ.

More than 200 workers, who assembled at the bank, ganged up and went to the house of the company’s chief financing officer, Mr. Siisi Mukelabai, demanding that he talks to the bank on why they were not being paid.

It was at this point as he arrived at the bank that irate workers pounced on him and started throwing punches at him but quick action by police officers who were monitoring the situation rescued him and whisked him away before he could sustain serious injuries.

NCZ workers, who get their salaries from the local ZANACO bank branch, have not yet received their pay as retirees are also demanding to be paid their terminal benefits amounting to K19 billion the company owes them.

National Union of Commercial and Industrial Workers (NUCIW) president, Seth Paradza, and local union branch chairman, Spider Chibale, who were present at the bank, cautioned the workers against becoming violent as it was not the fault of the chief financing officer’s, but that of the retirees.

Mr. Paradza described the action by workers as unfortunate and has appealed to management at the company to dialogue with the retirees’ lawyers to find a solution to their problem.

Mr. Paradza said workers, together with management at ZANACO and the retirees, had agreed the presvious day in Lusaka to release the salaries but wondered why the injunction has not been lifted by yesrteday to allow the bank to pay the salaries.

He said it was practically impossible to share the K6 billion government has released for the retirees because it is meant to clear the four months salary arrears for workers.

Mr. Paradza said other workers who receive their salaries through other banks have not problems and have been paid apart from the ones who are with ZANACO.

But when contacted for comment, Chairman for the retirees Mr. Victor Kunda, said their lawyer will only lift the injunction if management agrees to pay the retirees K5 billion.

He said there is little the retirees can do but only instruct the lawyers to lift the injunction once they are paid their money also.

Mr. Kunda said once this is done, the workers will be allowed to access their salaries from the local ZANACO branch.

VICE-PRESIDENT Rupiah Banda has disclosed that government, through the Ministry of
Education, has set aside K10.6 billion for damaged school infrastructure and community schools across the country.

The Vice President said this when he made an on-the spot check on Batoka High School that
is being constructed with the help of the community in the area.

Mr Banda assured the local community that the school would be completed and disclosed that the Ministry of Education has allocated K10.6 billion to be used on school infrastructure that has been damaged by natural causes as well as community schools across the
country.

He observed that poverty and hunger could only be overcome if the country had well educated citizens.

And speaking earlier, Choma District Education Board Secretary (DEBS), Anna Masilani, said teachers have already been recruited, adding that government would soon be releasing money for the completion of the community high school.

Ms Masilani said 1×3 classroom blocks and teachers’ houses were under construction.

The Vice-President who was in Southern Province to visit flood-hit areas and resettlements in the district, has since left for Lusaka by road.

He was seen off by Southern Province Minister Danniel Munkombwe, Southern Province Permanent Secretary Darius Hakayobe and other senior government officials.

Repubican Vice President, Rupiah Banda, has observed that resettlement schemes are a valuable strategy for spreading development expeditiously in the country.

Mr. Banda, however, pointed out that the success of resettlement schemes depends on the unity of settlers themselves.

The Vice President said this today when he addressed settlers at Harmony Resettlement Scheme to wrap up his tour of Southern Province.

He expressed happiness that the settlers are determined to make the scheme successful because of their various local iniatives to setting up social infrastructure such as schools and a clinic.

Mr. Banda also assured the settlers of government support to provide basic infrastructure in the area to help uplift their living standards.

He urged the community leadership to continue working hard in order to promote and achieve development in the area.

And Mr. Banda has assured the settlers that his office will secure enough fertilizer in the farming season.

He has further assured the settlers of government’s committment to ensuring that they obtain their title deeds for the land.

He reiterated that govefrnment will remain committed to uplifting their livelihood.

Mr. Banda also commended area MP for UPND Choma central, George Chizengwa, for his consistant efforts in partnering with government to bring development to the area.

And Mr. Chizengwa said the Veep’s visit to the area is a clear testimony of government’s commitment to improving people’s lives regardless of their political affilliation.

Mr. Chizengwa said he will remain committed and cooperate with government to deliver development to his cosntituency.

And Southern Province Deputy Minister Daniel Munkombwe said he will continue being action-orientied and partner with various stakehodlers in the province in ordeer to achieve positive results.