Zambian mines to provide detailed info
By Nawa Mutumweno – Government has introduced regulations that compel mining firms to provide information on tonnage, type and grade of ore mined including operating cost sheet and production figures to contribute revenue to the Treasury.
According to Statutory Instrument No. 34 of 2012, mining companies would be required to submit reports on the recovery percentages and efficiency of all mining and metallurgical processes and balance sheet showing the disposition of all metal and mineral products derived from the ore reserves.
Providing a statement of work carried out on capital products and expenditure and availing quantities and grade of end products produces, quantities sold and average price of selling prices are the other requirements for the mining companies.
These developments were announced by Zambia’s Mines minister Christopher Yaluma recently.
‘’Its performance in terms of mineral production has been improving over the years but this improvement has not been matched with corresponding increase in revenue to government, so we have reviewed legislation in order to independently monitor the production and export of minerals and failure to comply will result in revocation of licences and other punitive measures,’’ he elaborated.
Meanwhile, Zambia Extractive Industry Transparency Initiative (ZEITI) head of Secretariat Siforiano Banda has intimated that the main cause of the un-reconciled discrepancies in the mining sector was as a result of lack of details of the payments by both companies and government.
According to the ZEITI 2009 reconciliation report presented recently, documentation indicates that mines contributed ZMK2.6 trillion while government received a total of ZMK2.5 trillion from the mines in 2009.
‘’There is need to follow up and minimise the discrepancies in the extractive sector and all stakeholders to cooperate in order to promote transparency in the extractive industry in order for the country to benefit from natural resources. The main cause of the un-reconciled discrepancies were due to lack of details of the payments by both companies and government,’’ Banda pointed out.
And council member Talent Ng’andwe said ZEITI promotes governance and seeks to reduce the risk of diversion or misappropriation of funds from the country’s extractive industry.
Konkola Copper Mines (KCM) was the largest contributor in the mining sector while Zambia Revenue Authority (ZRA) was the largest contributor to the Treasury in the country through the payment of Pay as You Earn taxes.
The report further indicates that in terms of copper production in 2009, Kansanshi Mining Plc was the highest producer of copper ore at 244 979 tonnes per annum whereas Grizzly Mine had the highest emerald production with 193 179 800 carats per annum.
Zambia joined the EITI in 2009 due to the perceived lack of transparency after the privatisation of the mining sector.
