Opinion: No compromise for Barrick Gold / Lumwana Mine

Filed under: Business,Special Comments |
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By Jackson Silavwe

Government should not relent in its quest to collect MORE MONEY from the Mining Companies on behalf of the Zambian people. It is true that our people have not adequately benefited form the mineral wealth of this land since the time of one Cecil Rhodes.

Yes Government should dialogue with Lumwana Mine for the sake of safeguarding jobs but should not Compromise on them paying new taxes.

Recently the Government of Zambia redesigned the tax regime for mining operations by replacing the current two tier system with the following mining tax structure:
• 8% Mineral Royalty for underground mining operations as a final tax;
• 20% Mineral Royalty for open cast mining operations as a final tax;
• 30% Corporate Income Tax rate on income earned from tolling;
Barrick Gold/ Lumwana Mine has responded by threatening the government that it will suspend mining operations if the proposed increase in mineral royalty taxes is approved by Parliament and effected in January this year.
This is daylight open blackmail by the Canadian Mining Giant.

Dialogue Yes but no compromise on paying new taxes.

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3 Responses to Opinion: No compromise for Barrick Gold / Lumwana Mine

  1. Well spoken, but for as long as gvmnt does not have any presence inside these mines they will never know the true production scale and hence never arise at desired revenue. Look at it on the mines point of view, why are they threatening to leave? where they consulted or someone just had to guess the percentages for these taxes. Any business is run to make a profit so gvmnt must be fair, sit down with the miners, send investigators to investigate their profits and then come up with figures that will entail a win- win situation for both grz and miner.

    Mubita
    January 10, 2015 at 7:42 am
    Reply

    • True, pragmatic entrepreneurship leadership mindset. To establish true value there is need to engage well versed people to investigate and later negotiate for a Win-Win situation. Govt has a lot of resources to go round that eg via the ZCCM wing(is it ZCCM – IH?). We understand most mines have almost recovered all their initial costs for their investments in Zambia but need to be engaged further for them to contribute meaningfully to new National development.

      Well articulated Mr Silavwe!

      FastLane
      January 10, 2015 at 11:16 am
      Reply

  2. Well said Sir

    Golden Banda
    January 10, 2015 at 7:57 am
    Reply

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Start: 2019-07-01 End: 2019-07-31