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Wednesday, 12 February 2014

Mining Developments

Mines Minister Christopher Yaluma says the government is considering increasing the mineral royalty tax from 6 per cent to as high as 10 per cent. Yaluma says, "we are not reaping what we are supposed to reap for the people of Zambia...We can't even guarantee that we are monitoring what is coming out of the soil..until we know what is coming out, then we will adequately tax." (Source : The Post)

FQM says it will engage GRZ to reverse the 10 percent export duty on nickel concentrate. It says nickel mines in Zambia are too small to justify the construction of Nickel smelters. The export duty is meant to encourage construction of smelters but what it is allegedly doing is merely holding up revenue for government. FQM is currently constructing a $100m nickel mine (Enterprise) in North Western Province (Source : ZNBC)

The new Kansanshi Mine Smelter will create about 800 jobs when it's fully operational according to the Environmental Impact Assessment (EIA) report on the Kansanshi Copper Smelter project. The smelter will cost around US$640m. The case for a new smelter has been boosted by projected increase in copper output from FQM's Sentinel Mine and other mines (Source: Times )

Government is allegedly planning to set up a copper processing plant in Mufulira through the Zambia Development Agency (ZDA). Copperbelt Permanent Secretary Stanford Msichili recently revealed ZDA has already requested Mufulira Municipal Council to provide land for the investment. The council had since submitted all needed information (Source : ZANIS)

Government plans to commission power projects this year that will boost generation capacity by about 39 percent. Christopher Yaluma says, “the mining industry cannot grow to the next step of making a significant contribution to economic development if the necessary infrastructure is not in place" (Source : Bloomberg)

President Sata, or more accurately the person who writes for him or in his name on Facebook, says government will give ZCCM Investment Holdings K275m to help it invest in value addition in the gemstone mining sub-sector. (Source : President Sata's Facebook Page)

Government will repossess Nkana’s slag heap in Kitwe from Chambishi Metals of China because the mining firm has allegedly failed to develop the heap into a meaningful copper and cobalt resource. Currently it is only being used by illegal miners. Apparently, government intends to develop the slag heap using simple technology “for the community to manage”, according to Mines D. Minister Richard Musukwa (Source : The Post)

Chola Mukanga | Economist
Copyright © Zambian Economist 2013

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