Mine Union and Economic Body condemns mining firms for threatening Government

By ALEX NJOVU
 
MINEWORKERS Union of Zambia (MUZ) and the Economics Association of Zambia (EAZ) have criticised mining firms for threatening court action against Government over the revised mineral tax regime, saying the intention was misdirected, selfish and against the interests of the majority Zambians.
MUZ president, Rayford Mbulu, said in an interview in Kitwe yesterday that there was no need whatsoever for mining houses to start issuing threats instead of discussing with Government.
Mr Mbulu said governments in Ghana, Uganda, Tanzania, the Democratic Republic of Congo, Nigeria and Guinea were currently re-negotiating mineral tax regimes.
In Liberia and Trinidad and Tobago, re-negotiations have been completed and there have been no threats of legal action against the respective governments.
“The mines in these countries have not taken their governments to court.
There was just a mutual agreement.
If mining companies have any areas of concern, let them highlight them instead of threatening Government with lawsuits,” he said.
He said once the new tax regime was implemented, it would benefit the general public by reducing poverty.
He urged Government to quickly constitute a team to re-negotiate the tax regime.
He said MUZ was “totally behind the government’s decision to review the mineral tax regime.”
He wondered why the mining companies were finding it difficult to accept the revised mineral tax regime, which was supported by Zambians and the international community.
Britain last week backed the new mining tax changes.
Mr Mbulu said mining companies should not cry foul over the tax hikes because copper prices had increased and there was a tremendous increase in productivity and expansion in mine infrastructure.
He urged Government to go ahead and implement the revised tax regime.
Mining companies submitted before Parliament on Monday that they will not accept the new taxes and would take legal action against Government if it implemented the new law.
But EAZ president, Mwilolo Imakando, said in an interview in Lusaka yesterday that Government must be firm and ensure that the new taxes were implemented.
“My appeal to Government is to go ahead and implement the new mine tax…these taxes are not too high as claimed by the mine owners,” Dr Imakando said.
He said it was unfortunate that mine owners were threatening legal action against Government when they had been paying very low taxes.
Dr Imakando said the new mine tax was aimed at ensuring that Zambia benefited from her natural resources.
He said the picture being painted by the Chamber of Mines that Zambia would suffer an economic recession should the investors in the mining sector pull out, was misdirected.
“I am not convinced that the proposed mine taxes are on the higher side.
They are actually very reasonable and Government should go ahead and implement them.
These mine investors should be sincere in their arguments,” he said.