zambia - existing mining licenses unaffected

By KALONDE NYATI
According to Reuters, the East African country has published a new mining law that will require foreign-owned mining companies to give up to 35 percent of their operations to Kenyans, following a new tax of 10 to 20 percent targeting sales of property or shares in oil, mining and mineral prospecting firms to help plug the growing funding gap.
But Mines Deputy Minister Richard Musukwa said the Zambian government has not slackened on increasing its stake in mining firms, adding that the increase will be made on up-coming mines because the arrangements with existing mines are legally binding.
“As Government we have not slackened down as regards to ensure that we increase our stake in the mines from the present status. This fundamentally is our perception and the increase can only be made on new up-coming mine investments moving forward as we cannot ideally open up existing arrangements which are legally binding,” he said.
In an interview, Mr Musukwa said Government will ensure that it undertakes best international practice as regards to mining.
He said Government is encouraging local investors to venture into both small and large-scale mining for Zambians to participate in the country’s mineral wealth.
Mr Musukwa said this will be done through technical and financial support to local investors wishing to invest in the mining sector.
“ZCCM-IH has been tasked to identify potential investors and provide them with technical and financial support because this has been lacking among the investors,” he said.
He noted that some local investors such as Tranter Zambia in Luapula Province have made progress in setting up mines and Government is committed to supporting such investments.
Mr Musukwa said Government has intensified the monitoring of copper production and exports to ensure that the proceeds are not under-declared and depriving the country from benefiting from its mineral resources.
He also said there is need for ZCCM-IH to venture into mining for it to compete favourably with the existing mines.
“Government would like ZCCM- IH to start a mining operation which should compete favourably with the existing private operations to be run and managed with commercially viable models…ZCCM-IH should also ensure that it actively participates in the mines it holds shares instead of being a sleeping shareholder,” he said.


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