The introduction
of Statutory Instrument No.32 is not meant to “kill” the mining sector or is it
a form of exchange controls but is aimed at ensuring that the proceeds from the
mineral resources benefits the Zambian
people said VICE President Guy Scott.
Government would
ensure that taxes remitted by companies were thoroughly scrutinized so that
they could fully benefit the nation said Dr Scott.
“Some sectors
feel we are going backwards by claiming that we are introducing exchange
controls but I want to tell you that we are an intelligent Government that
wants to ensure that the resources are properly managed through the
implementation of the SI 32,” he said.
Dr Scott said
while speaking during the 3rd Zambia International Mining and Energy Conference (ZIMEC) in Lusaka yesterday, it was
sad that more money continued to leave the country through tax avoidance hence
the need to intensify policies that would ensure transparency in the industry.
Issues globally
with the on-going Group of eight nations meeting on taxation and transparency
in Northern Ireland being timely as it would assist countries like Zambia find
a lasting solution to the challenges Dr Scott further added.
“We are very in
line with this meeting and we expect that we will have increased transparency
and access to offshore bank
accounts,” he said.
Government would
continue to create an enabling environment for investors in the mining and
energy industries saying the sectors were key in national economic development,
Dr Scott said.
He further said
that investors should also ensure they ploughed back to the communities they
operated in through job creation and other corporate social responsibility
activities.
“Government was
not elected by the people of Zambia to extract 750,000 tonnes of copper a year but
to see to it that the minerals are beneficial to the people of Zambia. If it
was important, we would not allow for the extraction of minerals but we allowed
it because the minerals are supposed to provide jobs, taxation and other
multiplier benefits,” Dr Scott said.
He said the
mining industry should support local industries by buying locally produced
equipment unlike the current trend where all equipment’s was imported.
“We want locally
value-added content in the inputs used by the mines. We want local industries
to process steel boards and other equipment used by the mines, that way more
jobs will be generated from the mining industries.
“It does not
make sense again for local enterprises to import equipment and supply it to the
mines but it is better to have foreign firms that are established in the
country and are engaging local people to produce the equipment,” he said.
The conferences
which was held two days aimed at creating a platform for stakeholders in the
energy and mining sectors to engage on issues that would enhance the mining and
energy sectors.
Over 300
delegates and mining giants including Mopani copper mines Rio Tinto, First
Quantum Minerals, among others was attracted by the conference organized by AME Trade in partnership
with Association of Zambian Mineral Exploration Companies.
The mine would
continue to invest in Zambia, with the mining firm investing over US$2billion
to date, Mopani Copper mines chief executive officer Danny Callow said.
“Mopani will
remain a committed partner in Zambia as demonstrated through the expansion
drive and infrastructure upgrade we have embarked on,” he said.
Mr Callow said
copper production was expected to increase to 1.5 million tonnes by 2016 due to
expansion projects being undertaken by various mines across the country adding
that the expected production capacity would only be sustainable if reliable
energy and good road and railway infrastructure were enhanced.
He said
Government and the mining firms should continue to dialogue on various policy
issues if the industry was to be fully developed.
