‘We’re imposing huge export duty on exported raw minerals’
WE are imposing huge export duty on minerals exported in raw form as a way to compel mining firms to start using refineries for value addition, Mines and Mineral Development Permanent Secretary Paul Chanda has said.
Mr Chanda’s sentiments follows calls by Mineworkers Union of Zambia (MUZ) president Joseph Chewe that mining firms on the Copperbelt should revamp their refinery plants to start adding value to minerals that were being exported in their raw form.
Mr Chewe wondered why mining companies like Konkola Copper Mine (KCM) had abandoned its refinery plants.
Mr Chanda an interviewed yesterday acknowledged that the union’s concerns were justifiable, saying that the government imposed huge export duty on firming firms exporting semi processed material like concentrates and ore in order to encourage the use of refineries for value addition. Mr Chanda said Government wants to ensure that mining firms start using the refineries they had abandoned to add value to the minerals.
Mr Chanda said the country cannot continue exporting raw materials when mining firms had capacity to refine the minerals.
“Government has given incentives for those companies producing cathodes when exporting their products as they are accepted from paying export duty, but those exporting semi processed material like concentrates and ore are subjected to export duty. This is one form of encouraging usage of refineries for value addition. I am sure with the incentives in place mining companies will opt for refining their materials,” Mr Chanda said.