Illegal mining, revenue leakages to come under check, as Minerals Commission reaches implementation stage


Zambia is geared to seal revenue leakages from the mining sector following the setting up of the Minerals Commission, which is currently in its implementation phase.

With the Commission in place, there will be control of illegal mining and understating of production among other areas, according to the Mines and Mineral Development Minister, Paul Kabuswe in an interview on Tuesday.

Kabuswe said the Minerals Commission would also have control on figures and licenses which were speculators.

According to a presentation made by the Zambia Revenue Authority (ZRA) Commissioner General, Dingani Banda, recently at a 2023 first quarter townhall meeting, revenue contribution of mining sector declined.

Banda cited low compliance by Artisanal, Small & Medium Mining Licence Holders as well as low compliance to Mineral Royalty as one of the challenges faced by ZRA during the first quarter of this year.

He also cited lower than projected profitability of major mining companies in 2022, which led to downward adjustments of the fourth quarter of 2022 Provisional Tax payments as another challenge

In dealing with these challenges, Minister Kabuswe pointed out that the commission would regulate the mining industry while ensuring that there would be no more revenues in the sector.

Read more: Chinese mining investors shunning Zambia for DRC copper, mining association claims

“We have already done that. We have formed and it is in its implementation phase. How it will help the industry is that it will regulate the industry, there will be no more leakages.

“There will be control of illegal mining, control of understating of production, figures, control of those licenses which are speculators, all that the mining commission will pick. Also, there will be enhanced value in terms of what the country takes from the minerals,” Kabuswe said.

Recently in a separate interview, Kabuswe said the Commission would be mandated with regulating and controlling Zambia’s mineral resources as well as to ensure that the country derived maximum benefits from its mineral wealth.

“The Minerals Commission will take stock and seal all the loophole in order to ensure that all the minerals leaving the country are accounted. Zambia will now regulate, control and check compliance levels of our mineral wealth. This is what has been lacking and created a scenario where we are not getting value for our mineral resources,” he said.

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