President Edgar Lungu says value addition is key to diversifying the economy and for creation of quality Jobs.

President Lungu says value addition to minerals is one of the strategies outlined in the seventh National Development Plan (7NDP).

President Lungu said this in Lusaka today when he graced the celebration of Jewel of Africa 25 years of its existence.

The Head of State said the increase in expansion of the industry and adding value to the minerals in the country will ensure growth in the sector.

He said the mining sector, large or small is a viable business venture in the country because it is a resource which is abundant.

President Lungu urged Zambians to show off its mineral wealth that the country is endowed with, as the sector has lagged behind.

He has since commended Jewel of Africa for its achievement and encouraged other business ventures to succeed and that more companies should emulate the firm.

Speaking earlier Minister of Commerce, Trade and Industry, Christopher Yaluma said it is good that Jewel of Africa uses locally sourced materials.

Mr. Yaluma said he is impressed with the company for adding value to the rich mineral wealth that the country is blessed with.

He said this will in turn create a ripple effect in the economy and create meaningful jobs for the local population.

Mr. Yaluma also encouraged the local industries to tap into the mining sector so that it may achieve its full potential.

Meanwhile, Minister of Mines and Mineral Development Richard Musukwa said there is need to protect the industry in order to support the economy.

Mr. Musukwa stated that the mining sector requires huge and massive infrastructure development that can support the development of the industry.

He stressed that Jewel of Africa has led the way and created a path that will ensure many players are involved in adding value to the mining sector.

And Jewel of Africa Managing Director Raj Sharma said it has not been an easy journey to reach where the company is today.

Dr. Sharma explained tha he is happy with the favorable economic policies that has helped them in doing business and eventually growing the business.

Source: Lusaka Times

LUSAKA – Mining companies operating in Zambia will still meet their operational costs even after the government imposes higher taxes in Africa’s No.2 copper producer, its finance minister said on Wednesday.

Zambia plans to introduce new mining duties, replace Value Added Tax with sales tax and increase royalties to help bring down mounting debt, Finance Minister Margaret Mwanakatwe said while delivering the 2019 budget speech last month.

Speaking on Wednesday at the closure of the debate on the budget speech in parliament, Mwanakatwe said Zambia was aiming to boost revenue collection.

Mwanakatwe told parliament that even with the proposed taxes “we are confident that mining companies will be able to meet their operational costs.”

Her comment appeared to be a sign that Lusaka will not reverse the proposals to raise taxes in the sector.

“We must register an improved and steady flow of revenue from mining commensurate with the size of extraction.”

Mining firms represented by Zambia’s chamber of Mines have opposed the proposed tax, while the Association of Zambian Mineral Exploration Companies has said the higher taxes would hurt investment in finding new mines.

Foreign mining companies operating in Zambia include NFC Africa, majority owned by China Non-ferrous Metals Company Limited (CNMC), Canada’s First Quantum Minerals, Glencore, Barrick Gold and Vedanta Resources.

Source: Morning Weekly

LUSAKA, Oct 17 (Reuters) – Mining companies operating in Zambia will still meet their operational costs even after the government imposes higher taxes in Africa’s No.2 copper producer, its finance minister said on Wednesday.

Zambia plans to introduce new mining duties, replace Value Added Tax with sales tax and increase royalties to help bring down mounting debt, Finance minister Margaret Mwanakatwe said while delivering the 2019 budget speech last month.

Speaking on Wednesday at the closure of the debate on the budget speech in parliament, Mwanakatwe said Zambia was aiming to boost revenue collection.

Mwanakatwe told parliament that even with the proposed taxes “we are confident that mining companies will be able to meet their operational costs.”

Her comment appeared to be a sign that Lusaka will not reverse the proposals to raise taxes in the sector.

“We must register an improved and steady flow of revenue from mining commensurate with the size of extraction.”

Mining firms represented by Zambia’s chamber of Mines have opposed the proposed tax, while the Association of Zambian Mineral Exploration Companies has said the higher taxes would hurt investment in finding new mines.

Foreign mining companies operating in Zambia include NFC Africa, majority owned by China Non-ferrous Metals Company Limited (CNMC), Canada’s First Quantum Minerals, Glencore, Barrick Gold and Vedanta Resources. (Reporting by Chris Mfula Editing by James Macharia)

Source: Reuters

GOVERNMENT is investigating the difference between production and exports declared by Konkola Copper Mines (KCM) to determine if mineral royalty paid on cobalt matches with quantity and value.

Minister of Mines and Minerals Development Richard Musukwa told Parliament yesterday that Government will soon introduce a mechanism through which mining companies will be issued with invoices for mineral royalty based on mineral analysis.

“This will allow for payment of mineral royalty on all minerals contained in the consignment and not on sales as it currently is.

“We will also provide adequate resources for the ministry to collect samples from the sites where the commodities are mined.

Source: Daily Mail

GOVERNMENT is concerned about the mining industry’s low contribution to the gross domestic product (GDP) despite being a critical player in the country’s economy.

It is for this reason that Government wants to see that the sector increases its contribution from around 12 percent of the GDP, the total value of goods produced and services provided in a country during one year, to about 40 percent.

Speaking at the Africa Chief Executive Officers (CEO) Forum yesterday, Minister of Finance Margaret Mwanakatwe said Government is keen on encouraging value addition to the mining industry because it is a strong business, thereby proposing to reduce company income tax from 35 percent to 15 percent.

Source: Daily Mail