Q FM Africa's Modern Radio
Christopher Yaluma
Mines, Energy and Water Development Minister Christopher Yaluma has ruled out the suspension of the mineral royalty tax in the 2015 national budget which was passed unanimously by Parliament on Wednesday.
Mining companies have cried foul over the new tax regime for the sector which seen the introduction of 8 per cent mineral royalty tax on underground mining and 20 per cent on open cast mining.
Speaking at a media briefing in Lusaka this morning, Mr. Yaluma has however stated that government is open to discussion with the mines over their concerns and is willing to revisit the new mining tax regime provided there is empirical data that supports their concerns.
He says he personally does not think that closing a Mine such as Lumwana Mine which is under care and maintenance is the solution especially that implementation of the new tax regime will come into effect in January 2015.
Mr. Yaluma states that government has already indicated its commitment to ensuring that Mines such as Lumwana Mine continue being viable, but that any concerns by the mining industry regarding the proposed tax regime should be one that is considered through dialogue.
He says the Mines should approach government and give their business case which will propose the performance under the 8 percent and 20 percent mineral royalty tax with assumptions made as regards to the production projections for next year and the impact of the mines’ businesses.
And Mr. Yaluma has disclosed that government is reluctant to reduce the fuel pump price further despite the continued slump in global crude oil prices.
Mr. Yaluma has told journalists that government is aware that the market has been flooded with the commodity but that there are many factors that are at play which government is aware of.
He has cited the Kwacha’s poor performance against the US dollar as one of the factors government has take into consideration not to reduce the fuel pump price further.
Meanwhile Mr. Yaluma has reaffirmed government’s commitment to ensuring that the Black Mountain in Kitwe Copperbelt becomes a safe source of accruing revenue for youths.
He says government is to this effect next year planning to introduce a mining training program for youths who will form consortiums in order that they are equipped with good mining practices.