18 February 2008
Ndola — FIRST Quantum Minerals and Konkola Copper Mines (KCM) have welcomed President Mwanawasa's call for dialogue over the new tax regime for the mining industry.
First Quantum minerals country manager, Chasanga Puta-Chekwe and KCM director of operations, CP Baid, said in separate interviews yesterday that it was good that the president had called for dialogue over the new tax regime.
Mr Puta-Chekwe said the mines wanted to renegotiate the Development Agreements (DAs) in good faith.
"The president's remarks are welcome. We will renegotiate the development agreements in good faith," he said.
And Mr Baid said KCM was looking forward to meeting with the Government to chart the way forward over the new mines taxation.
Mr Baid said KCM would take into consideration the long term interests of the Zambian economy while renegotiating.
"We are happy that the president has called for dialogue. We are more interested in the long term growth of the sector," he said.
President Mwanawasa on Thursday last week invited mining companies opposed to the new mines tax regime to seek audience with the Finance and National Development Minister, N'gandu Magande, and his Mines counterpart, Kalombo Mwansa.
Dr Mwanawasa said the mining firms should be prepared to explain to Governemnt why they were not happy with the proposed increase in tax for the benefit of the Zambians.
Government revised the tax regime for the mining industry by raising mineral royalty tax to three per cent from 0.6 per cent, pegging corporate tax at 30 per cent and introducing windfall taxes to be triggered at different price levels.
Major mining companies and the Chamber of Mines of Zambia recently rejected the new tax regimes for the mining industry, arguing that they were not consulted and threatened legal action against the Government.
Meanwhile, the Kabwe Chamber of Commerce and Industry (KCCI) has backed Government on the new mining taxation, stressing that the move was long overdue.
Moving a vote of thanks during a reception held at the Zambezi Source Lodge at the weekend in Kabwe for heads of Government departments, KCCI chairperson, Wilfred Wonani said the decision taken by Government over mining taxes was in the interest of all the business houses in Kabwe.
Mr Wonani prodded Government not to back-pedal on the decision it had taken.
Be the first to Write a Comment!
Copyright © 2008 The Times of Zambia. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
