Vice President Inonge Wina has stated that the steadily rising copper prices on the international market is a good indicator for Zambia’s mining industry and plays an important role in the equation of rebooting Zambia’s economy.
Copper prices on the London Metal Exchange have hit record highs of over US$9,500 per tonne. Experts indicate that this copper rally may continue as motor companies are now focusing on electric cars which are expected to back the growing demand.
The veep said the movements in economic indicators are important for the economy as they signal what adjustments that are needed to be made in order to reboot the economy back to the path of growth as indicated in the economic recovery plan.
She was speaking at the 2021 Mining Indaba which the Zambian Business Times-ZBT is attending. “It is gratifying to note that one of the key economic indicators ‘the price of copper on the international market has continued to register a steady growth.
“This is certainly a good indication for the industry and plays an important role in the equation of rebooting our economy to growth,” she said. The veep acknowledged that a positive working relationship between Government and the mining industry players and stakeholders was critical in promoting a sustainable, diversified and export orientated industry.
She signaled Government’s determination to resolve policy and regulatory issues that investors have been raising regarding investment in the mining sector. She stated that the mining firms had constantly complained of being over taxed, thereby making their investment unattractive.
The two days indaba is being held under the theme “Building for the Future: reflecting on Zambia’s Mining Taxation Policy Towards Sustainable Investment in the sector.
Mining taxation policy and the tax administration has been a topical issue in Zambia’s policy debate since the privatisation of the mines. “At the heart of this is the question of how the Zambian Government can maximise revenues from its extractive sector without compromising the profitability of mining firms,” she stated.
She further stressed the importance of mining firms contributing their fair share to the treasury through equitable taxes.”Our vision is to develop the mining industry into a catalytic, transformative and innovative developmental industry by growing the existing mining activities, formalising Artisanal small scale mining and promoting new investments in order to set Zambia in a pole position to benefit from the new and emergent green energy wave,” she added.
And ZRA Commissioner General Kingsley Chanda stated that their is need for striking a balance and not just have a one way debate on taxes rate reduction and tax refunds. There are some mines which have operated in Zambia for over 15 to 20 years, but have never declared a profit.
“If these Mining entities who have never declared a profit but continue mining are not taxed via top line mineral royalty tax, then it may lead to a situation were they exit the country, deplete the copper deposits and not contribute anything to the treasury and people of Zambia” Chanda stated.
