Zambia’s 2012 mining revenue up 25 pct on higher royalties

A mine worker looks on underground

A mine worker looks on underground

Jan 8 (Reuters) – Zambia’s mining revenue rose by a quarter in 2012 after Africa’s top copper producer doubled royalties charged on mining firms, bringing in badly needed revenue for social spending and farm subsidies.

Zambia, like other African countries, wants to extract more revenue from their mining industries – a move miners have warned may cause them to scale back operations.

Foreign mining companies operating in Zambia include Canada’s First Quantum Minerals, London-listed Vedanta Resources, Glencore of Switzerland and Barrick Gold of Canada.

Zambia collected 4.4 billion Zambian kwachas ($830.19 million) in mining taxes last year compared with 3.3 billion Zambian kwachas in 2011, deputy finance minister Miles Sampa told Reuters on Tuesday.

Of these, revenue from mineral royalties jumped 72 percent to 1.5 billion kwacha in 2012, while revenue from the profit-based income tax was largely steady at 2.6 billion kwachas.

“The problem is that only about two mines are currently declaring profit and paying the due tax,” Sampa said.

“We should be able to increase mining revenue further if we address the problem of tax avoidance.”

Zambia last year brought in guidelines for mineral exports to allow state agencies to verify weight and content to enhance transparency.

Government estimates showed the country was losing as much as $1 billion each year through tax avoidance and the government would this year closely monitor mining companies, Sampa said. ($1 = 5.30 Zambian kwachas) (Reporting by Chris Mfula)

1 comment

  1. Aka Sum

    OPPOSITION PARTIES PREPARE YOURSELVES NOW FOR 2016

    In Zambia our opposition parties appear or become active only during an election, and disappear when the election is over. It is found out that most of the opposition parties are established around the personalities of individuals, lack internal democracy, suffer from inter-party and intra-party conflicts, have severe shortage of finance, and lack strong base and experience. Their weaknesses also include bad organization and weak connection with the popular constituencies. My research concludes that most of the weaknesses in the opposition parties emanate from the incumbents’ hostile policies, which are mostly aimed at fragmenting and weakening the opposition groups.Opposition parties are also defined as minority parties that do not wield executive power, but act as a check on governments
    . In democratic country like ZaMBIA , opposition parties are suppose to be free to criticize the ruling party and the government with out intimidation , and they are entrusted with offering policy alternatives. 2016 is around the corner and I must commend opposition parties and leaders such as HH ,Mumba that have continued to challenge SATA and government when government is wrong even when they are faced with arrest.We live in a time where Sata and PF govt continues to abuse office and undermine democracy .They continue divide the opposition instead of listening , we have also seen an increase in corruption from the PF government while the common man suffers.ZaMBIA needs credible leadership , we have had 90 days of nonesense
    Winning a general elections is not easy so the opposition needs to start organising themselves and campaigns now .Every part of ZaMBIA must be visited and explained to the people why we need a government that will bring development and not create divisions .Sata and PF have to go they have failed ZaMBIA .

    Freedom Speech ( you can find me on facebook , add me )

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