MINING EXPERT SAYS GROWING ZAMBIA’S COPPER PRODUCTION MAY BE HINGED ON REPLICATING PRIVATIZATION ERA TAXATION POLICIES

 Mining Expert Professor Peter Chileshe says Zambia has the potential to attract more investors into the mining sector if the government reduces the mineral royalty tax to below 1 percent, for both Greenfield and existing mines to attain the 3 million tons annual copper production targets.

Professor Chileshe, an academician from the school of mines at the Copperbelt University -CBU, believes that replicating the model used during the privatization era, will help Zambia to grow its mining sector.

Professor Chileshe highlights that reducing mineral taxation ridiculously low, enabled the MMD government to attract investors including First Quantum Minerals-FQM which was little thought about around 1997, to currently champion Zambia’s copper production.

He contends that tax giveaways are not enough to attract tangible investments and are a waste of revenue for Zambia, hence the need to create a far more conducive environment by reducing mineral royalties to levels that President Fredrick Chiluba previously did.

Professor Chileshe has however advised that this should be done while Zambia gets sufficient employment and adequate local content, while pushing for Greenfield mining projects and prospects existing in Serenje, Mukushi and Mumbwa areas to begin operations.

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