State assures nation over mineral taxes use
By REBECCA CHILESHEMINISTER of Mines, Kalombo Mwansa, has assured the nation that Government will exercise transparency in the collection and use of taxes from the mining sector.
Dr Mwansa said this during the launch of the Federation of Small Scale Miners Associations of Zambia in Lusaka yesterday.
He said this was why Government had requested the World Bank to carry out a scooping study on whether Zambia should join and implement the Extractive Industries Transparency Initiative (EITI).
“The EITI commits a country to publish all payments made to Government by extractive companies,” Dr Mwansa said.
He said promoting a culture of paying tax among small-scale miners would enhance tax collection for the social and economic development of Zambia.
Dr Mwansa said a total of 31 loans amounting to K1.5 billion had so far been disbursed to small-scale miners from the mining sector revolving fund that was established in 2005 with an initial sum of K2 billion.
He said out of the 31 small-scale miners who acquired loans, 12 were women, representing a 39 per cent participation rate for the female gender.
However, Dr Mwansa said the loan recovery rate had been poor.
“Out of the 31 loan recipients, only six have started paying back the loans and, as at the end of April 2008, only K36.7 million had been paid back out of a total disbursement of K1.5 billion,” he said.
Dr Mwansa encouraged the interim executive committee of the federation to familiarise itself with the new system of lodging applications for mining rights as the ministry had started receiving them.
Federation Interim president, Lyapa Manza, said his organisation’s key objective was to promote sustainable development of the small-scale mining sector, trading, lapidary, and jewellery manufacturing.
Mr Manza said small-scale mining provided a great opportunity and not a threat to anyone or any institution in national development.
“In many instances, most of our top quality gems and minerals are situated in remote places of the country, and mining provides the only means of survival for many.
“A well organised and supported mining industry has the potential of contributing immensely not only to poverty eradication, but also to the economic well being of the country,” he said.
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