EAZ concerned with plans by mines to cut jobs

The Economics Association of Zambia (EAZ) says it regrets plans by mining companies to cut down labour and capital injections.

In a statement issued to Q-News, the EAZ Board has expressed concern over the statement issued by the chamber of mines warning that the new mine tax regime proposed by government could lead to more than 21,000 job losses and operators cutting us$500 million in capital spending over the next three years.

It notes that the mining industry remains the most important industry in Zambia and a significant contributor to Zambia’s foreign exchange, and that it against this backdrop, that the sector contributes significantly to Zambia’s economic development through job creation and linkages with other sectors.

The EAZ says it is unfortunate that the mines remain uncooperative and opposing every time a new tax regime is proposed to enhance revenue collection from sector which is expected to benefit the citizens.

It states that employees should not be used as a tool for arm twisting government.

The association notes that the current mine tax regime is archaic and only allows exploitation of Zambia’s mineral resources.

It adds that it is also unfair to reduce mining activities and capital injections into the sector at a time metal prices are favorable.

The Economics Association of Zambia states that halting mining operations is equivalent to economic sabotage and that no country can tolerate such especially that over 70% of foreign exchange inflows come from the mining industry.

The EAZ has disclosed that it is preparing an advisory note to government to ensure that marketing and sales of mineral resources is done locally so that all foreign exchange flows through Zambian commercial banks.