- by Natasha Sakala on 22 Aug 2019by Mukosha Funga on 21 Aug 2019by Ulande Nkomesha on 21 Aug 2019by Ulande Nkomesha on 21 Aug 2019
- by Ulande Nkomesha on 21 Aug 2019by Memory Chipili in Solwezi on 20 Aug 2019by Mukosha Funga on 19 Aug 2019by Natasha Sakala on 17 Aug 2019
- by Natasha Sakala on 21 Aug 2019by Zondiwe Mbewe on 21 Aug 2019by Zondiwe Mbewe on 21 Aug 2019by Zondiwe Mbewe on 21 Aug 2019
- Goal Diggers
- by Abraham Kalito on 8 Aug 2019by Abraham Kalito on 8 Aug 2019by Abraham Kalito on 5 Aug 2019by Abraham Kalito on 28 Jul 2019
- by Diggers Editor on 22 Aug 2019by Diggers Editor on 21 Aug 2019by Diggers Editor on 20 Aug 2019by Diggers Editor on 18 Aug 2019
- Guest Diggers
- by Chisoni Mumba, PhD on 17 Aug 2019by CUTS on 4 Aug 2019by Kangwa Muyunda on 3 Aug 2019by Rueben Lifuka on 31 Jul 2019
- Editor's Choice
- by Diggers Correspondent on 24 May 2019by Diggers Reporter on 4 Mar 2019by Andyford Mayele Banda on 29 Jan 2019by Davies Mwila on 22 Jan 2019
- by Diggers Correspondent on 11 Aug 2019by Mukosha Funga on 27 Jul 2019by Mukosha Funga on 21 Jul 2019by Web Master on 27 Jun 2019
Chamber of Mines disagrees with Ng’andu over 2019 mining tax regimeBy Natasha Sakala on 23 Jul 2019
The Zambia Chamber of Mines has disagreed with the sentiments made by newly-appointed Finance Minister Dr Bwalya Ng’andu that declining copper production is not linked to the 2019 mining fiscal regime.
And the Chamber has called for consistency in implementing a stable mining tax regime if Zambia’s mining sector is to record any meaningful development.
Last Wednesday, during his maiden briefing on the economy, Dr Ng’andu said that Zambia’s declining copper production should not be linked to the 2019 mining fiscal regime as the real factors were largely attributable to pricing and low grades of copper, among other fundamentals.
But in an interview with News Diggers! Chamber of Mines president Goodwell Mateyo argued that the current tax regime was not attractive as some companies had halted expansion projects following the fiscal regime’s implementation back on January 1, 2019.
“If you look at Kalungwishi, the import duty on copper concentrate from Congo (DR) has simply resulted in them not producing any copper at all. So, it’s not entirely true that they are unrelated. They are directly related; investors come with all their money entirely because of the tax regime. If you talk about FQM (First Quantum Minerals) not investing in their expansion plan, (it) has a lot to do with the current mining tax regime so it’s not entirely true to say the tax regime and production are unrelated, it is related, except in some cases the relation is more direct than others,” Mateyo said.
“There is a correlation because I think if you remember when we did a brief at the beginning of this year when we were talking about the possible effects, what we did say (was) what can happen is companies are going to start turning back on expansion plans, which will eventually result in reduced output.”
Mateyo, however, noted that reduced copper production at Konkola Copper Mines (KCM) Plc was not directly related to the 2019 mining fiscal regime.
“The other thing that has happened, such as KCM, which are not directly related, the loss of production, for example at KCM, is not directly related to this, but one other thing that you must bear in mind concerning KCM is that the fiscal regime wasn’t conducive enough to attract and to bring in the capital that was necessarily needed for the mine,” he added.
And Mateyo, who is also Mopani Copper Mines’ general legal counsel, called on government to be consistent with implementing a stable tax regime as the inconsistencies seen in recent years had a negative effect on the sector.
“Actually, we are supposed to pay taxes just like any other productive aspect of the economy, but what we are saying is that it should be fair taxes, not taxes that drive producers to start turning back on expansion plans; that actually encourage producers to pump in capital in to their operations. It’s two things: fair taxes and also consistency with the tax. We have no problem with paying the taxes, but approximately every 18 months, we have to be sure of where we are,” said Mateyo.
About Natasha Sakala
Natasha Sakala draws inspiration from people who stand up for what is right. She is very versatile and likes to bring out issues as they are.
Email: natasha [at] diggers [dot] news
- Fight against corruption slowly losing its meaning, says Makebi - 22 Aug 2019
- Mundubile asks lawyers to stop making ‘off-the-shelf’ suggestions on Bill 10 - 21 Aug 2019
- UPND MPs refute media reports that they’ll betray, support Bill 10 - 21 Aug 2019
- I don’t have land in Forest 27 – Mweetwa - 21 Aug 2019
- Development will follow those who cry the most, says Lungu - 20 Aug 2019
- Lungu leads 34 member delegation to India (2,270 views)
- Mushimba wonders why accepted UNZA student don’t show up to enroll (1,930 view)
- Ndulo, Sangwa must be drunk to think they can sue Lungu - Tutwa (1,636 view)
- You'll create constitutional crisis if you rule Matibini out of order on Roan seat, Mwansa tells ConCourt (1,605 view)
- State witness in Chimese’s case in court for perjury (1,026 view)
- Lungu was one of my brightest pupils, retired teacher tells court
- It's not LAZ but 2,3 overzealous lawyers challenging Bill 10 - Siliya
- Development will follow those who cry the most, says Lungu
- I'm suing Tutwa for alleging that I've been paid to fight govt - LAZ president
- Tutwa leads campaign to impeach LAZ president
Subscribe For News In Email
The News Diggers
Deputy News Editor
Plot No. Lus/9812/649-MC8
off Alex Chola Road
P.O. Box 32147
Telephone or WhatsApp:
diggers [at] diggers [dot] news
editor [at] diggers [dot] news
Send this to a friend