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Wednesday, 28 March 2012

Defaulting mining companies

Over 400 mining companies are facing the prospects of ceasing their operation in Zambia for failing to meet statutory obligations as required by law. The Ministry of Mines and Natural Resources has issued default notices to the companies specifying that they risk having their mineral processing or exploration licences cancelled if they do not remedy the defaults within 60 days starting from Friday, March 16, 2012:
“In accordance with provisions of section 102 of the Mines and Minerals Development Act number 7 of 2008, the director of Geological Survey hereby gives default notices to the under-listed holders of prospecting licences and mineral processing licences with the following defaults: Non-payment of area charges on the anniversary of grant, contrary to section 143 of the Mines and Minerals Development Act, failure to commence and carry out prospecting operations contrary to section 19 of the Mines and Minerals Development Act, and failure to submit quarterly and annual exploration reports, contrary to provisions of the Act….”
On the list includes First Quantum Minerals (FQM) Zambia Limited, Equinox Zambia Limited and ZCCM-IH, BHP Billiton World Exploration Incorporation Zambia Limited, Zhonghui Mining Industry Limited and others. The new government has signalled its intent to tighten the grip on statutory obligations.

3 comments:

  1. Small problem - the big names listed here dispute that they are in default and considering the damage done to reputations which impacts on share prices, those who are compliant may take action against the government for this notice. And this blanket notice is not right acoording to law as any notice of defualt must SPECIFY the nature of the default. So government may land embarrassed. And why not pick the Zambian owned companies for your list - why pick foreign companies (except ZCCM-IH)?

    ReplyDelete
  2. Well they don't pay taxes, and they don't pay their workers very much, and they have had the MMD taking bribes to look the other way for 20 years.

    Which by the way is illegal for US and Canadian citizens.

    It is time to take a lot of them back and make them work for the people of the country.

    ReplyDelete

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