Maintain mining policy stability, govt urged

Zambia Chamber of Mines president, Nathan Chishimba has called for stability in mineral royalty tax regime, both in quantum and deductibility, saying Zambia could grow the mining sector to produce 1 million tons of Copper per annum from 710, 960 tons recorded in 2015.

GOVERNMENT must maintain stability in mining policy to create optimal conditions for the industry to double production per annum and boost contribution to the Gross Domestic Product (GDP), the Zambia Chamber of Mines has advised. Chamber president, Nathan Chishimba called for stability in mineral royalty tax regime, both in quantum and deductibility, saying Zambia could grow the mining sector to produce 1 million tons of Copper per annum from 710, 960 tons recorded in 2015. He pointed out that mineral royalty tax rates should remain on a sliding scale as well as corporate tax at 30 percent. Mr Chanda also said in a statement that restoring working capital tied up in Value Added Tax (VAT) refunds by offsetting against dues going forward would go a long way in positioning the Zambian mining industry for double digit growth. He reiterated that with continued stability and a focus on growth, Zambia would easily attract exploration capital to extend the copper mining industry’s life beyond the twenty years of present proven bankable reserves of 20 million tons. Mr Chanda pointed out that by attracting exploration capital, the country could increase its proven reserves by over a million tons per year as was done from 1996 to 2005 and once again added decades to the industry lifespan. He said that the growth was the most sustainable and inclusive means to meet the expectations of all stakeholders over time via measurable progress and increasing tax contribution to the government. “The other thing industry seeks is the removal of capping of carry forward loss tenure to ten years and limiting to below 100 per cent of capital allowance claims for equipment and mine building expenditure in a year.