TECHNICAL studies on the possibility of extracting copper on commercial basis from the Mufulira Tailings dams have started at a cost of US$5 million.

The Government, however, told Parliament on Tuesday that it would not demand taxes from the China Non-ferrous Metals Company (CNMC), which is conducting the study because there was no production yet.

Deputy Minister of Mines and Minerals Development Boniface Nkhata said this in response to a question by Chipili Patriotic Front (PF) Member of Parliament, Davies Mwila, who wanted to know the reason behind the agreement for the study that had started at the dams.

Mr Nkhata said the Government would not collect taxes from a mere study because taxes were collected on the basis of levels of production and profitability.

He said the study was meant to assess the economic viability of excavating for copper in the tailings dams.

The Zambia Consolidated Copper Mines-Investment Holdings signed an agreement with CNMC on April 12 for the study to assess the possibility of excavating for copper on commercial levels at the dams.

Mr Nkhata said production would start when the study confirms the presence of adequate amounts of copper.

The sitting also saw the presentation of the Excess Expenditure Appropriation (2007) Bill meant to authorise supplementary expenditure, while the other Bill that was moved by the minister of Commerce, Trade and Industry seeks to rename the Zambia Competition Commission to Zambia Competition and Consumer Protection Commission.

Both Bills went through to the second reading without objection.

Earlier, Minister of Finance and National Planning Situmbeko Musokotwane urged the House to support the Bill because excess expenditures were legally recognised in the country's Constitution.

Meanwhile, the expansion of a tarred road to reach Chavuma has been speeded up to ensure that works are completed before the end of the year.

Minister of Works and Supply Mike Mulongoti said two contractors were on site but the Government had engaged a third contractor who would be moving on site before the end of next month.