State extols Chinese mining firms in Zambia

PHILIP CHISALU
Lusaka

GOVERNMENT has extolled Chinese enterprises in Zambia for playing a crucial role in the country’s mining industry, with over US$3.5 billion invested and more than 15,000 local people employed.
Ministry of Mines and Minerals Development Permanent Secretary Hapenga Kabeta made the acknowledgement yesterday when he opened the Compliance Development Training for Mining Enterprises.
The Compliance Development Training for Mining Enterprises has been organised by the Chinese Mining Enterprises Association in Zambia.
“This training is being undertaken at a time when Government is focusing on transforming the sector in which the Chinese enterprises are instrumental,” Dr Kabeta said.
“As earlier alluded to, Chinese mining enterprises have played a crucial role in Zambia’s mining industry with over US$3.5 billion invested and more than 15,000 Zambians employed.”
Dr Kabeta also appealed to Chinese Mining Enterprises Association in Zambia to help Government curb illegal mining activities in the country.
“All licensed processing plants should buy the ore from licensed sources, thereby promoting legal mining activities.”
Dr Kabeta urged Chinese enterprises to ensure compliance to various policy and legal frameworks to avoid being found on the wrong side of the law.
He said Government will not allow a few Chinese enterprises to tarnish the good relationship enjoyed between China and Zambia.
Counsellor at the Chinese Embassy Jin Jun urged Chinese firms operating in Zambia to respect the country’s mining regulations.
Chinese enterprises to improve communication with the Zambian government on any illegalities and tax-related matters.
“My suggestion is that the association should combine the regulations made by Zambia and translate them into Chinese and distribute them to member enterprises.
“Secondly, Chinese enterprises should respect and adhere to legal frameworks. The association should strengthen their discipline among members,” he said.
And speaking on behalf of fellow investors, Zambia Chinese Association president Zhang Jian appealed to continue abiding by Zambian laws.
“To the Zambian government, we will be law-abiding corporate citizens – paying every cent in taxes, ceding no ground on environmental protection.
“To local communities, we will be partners in progress – allocateng one to two percent of annual profits to education, healthcare and infrastructure,” Mr Zhang said.
Chinese Chamber of Commerce in Zambia president Li Tie said few Chinese enterprises still lack sufficient emphasis on compliance.
“Some lack dedicated compliance departments, others rely on firefighting rather than prevention, and employees often have weak compliance awareness or vague understanding of legal provisions,” Mr Li said.
He added: “We call on all enterprises to strengthen toplevel design. Large enterprises should establish compliance committees under their boards to clarify responsibilities.
“Develop compliance manuals aligned with international standards, covering procurement, employment and community relations, and internalise external regulations and embed a compliance culture.”