By Bennie Mundando
GOVERNMENT says it will hold a mining sector indaba within the first quarter of 2021, with a view to putting in place and implementing a stable mining tax regime so as to increase investment.
This, it said, is because the mining sector will continue to play a key role in the economy and that to ensure predictability and in turn create sustained investment in the sector, Government will review the mining tax policy framework with a view to introducing a more stable mining tax regime.
According to the Economic Recovery Plan (ERP) 2020-2023, Government, working with the mining houses, will invest in systems to enhance transparency to seal loopholes and accurately quantify as well as value, mineral content for tax purposes.
One of the measures Government intends to put in place is to ensure that it increases its stake and find equity partners for Konkola Copper Mines by securing capital to ensure increased production. It also plans to facilitate the acquisition of majority equity in Konkola Copper Mines by the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH).
It also plans to increase Government stake in Mopani Copper Mines by facilitating the acquisition of majority equity in Mopani Copper Mines by ZCCM-IH
On Gold mining, Government intends to increase investment in gold mining and processing by streamlining gold marketing to increase benefits to the country as well as facilitating the purchase of bullion standard gold by the Bank of Zambia for reserves through ZCCM-IH and other producers.
Under geological mapping, Government intends to intensify mapping of the mineral resource endowment of the country, while on value addition, it will create value addition in the mining sector through increased investment in processing and refining capacity for minerals in partnership with the private sector.
Government also intends to create a Mining Regulatory Authority to regulate the sector, address cost structures, monitoring, disputes, and ensure better coordination of mineral resources in the country by passing necessary legislation.
It also intends to promote formalization of small-scale gold and manganese mining through the creation of cooperatives and establishment of trading centres in the sector as well as overseeing the development of value chains for other non-traditional minerals such as manganese and gemstones.