K21m unpaid in mining charges - AG's report

thereafter annually until the termination of the mining right

OVER K21 million is owed to or mineral processing licence.

the State by about 1,477 mining The report for the period

right holders, the latest Auditor ending December 31, 2019

General’s report has revealed. however states that contrary

The report states that the law to the provisions, the Ministry provids that a holder of a minof Mines failed to collect area ing right or mineral processing charges totalling K21,199,692 licence should pay an annual from 1,477 mining right holders area charge of such amount as as at August 31, this year. may be prescribed, or as may be “Section 72 (1-2) of the Mines calculated in the manner preand Minerals Development Act scribed by the Minister. No. 11 of 2015 read together It indicates statement that the annual of claim

with Section 57(3) of the Mines area charge should be payable and Minerals Development on the grant of the mining or (General) Regulations of 2016 mineral processing licence, and provides that payment of area charges should be based on hectares owned by mining right holders,” the report reads. The report states that the Act provided for a rate of K16.80 per hectare for large scale mining right holders.

It however indicates that that a large-scale mining company owning 8,316.56 hectares of mining right was charged K93,145 as opposed to K139,718 resulting in an under charging of K46,573.

“As at 31st August 2020, no recovery had been made,” the report reads in part.