Maravi

CSOs protest over 'unfair share' from mines

CSOs protest over 'unfair share' from mines
By Gift Chanda
Sat 23 June 2012, 13:22 CAT

A CROSS section of civil society groups interested in the mining industry on Thursday demonstrated and pelted organisers of Zambia's second international mining conference in Lusaka over what they described as "unfair share" from the natural resources.

The civil society groups, who were also attending a parallel mining conference in Lusaka dubbed: 'Mining in Zambia; who benefits?' denounced investors in the mining industry over lack of attention on communities they operate in.

The interest groups, who were drawn from Europe and the Southern African Development Community (SADC) including Zambia, accused investors of ripping Zambia off its mineral resource and leaving very little benefits for the locals.

Carrying placards, some which read; "We want our money! Where is it?", "Let's have a fair share of the profits", the CSOs convened at the new Government Complex where the international mining and energy conference was taking place and denounced the investors operating in Zambia, Africa's top copper producer.

They regretted that despite Zambia being endowed with mineral resources, more than 60 per cent of its 13 million populace live under the poverty datum line.
The interest group also reminded the government on its pre-election promise to re-introduce the controversial windfall tax.

According to a communiqué, the civil society groups demanded among others, increased benefits from the mining sector.

They demanded that the government revises the current mining tax regime in a way that would enable it collect commensurate royalties on mineral sales, gross production and tax on mining profits.

"The existing tax regimes in the mining sector are inadequate and undermine the socio-economic benefits for Zambians from the extractive industries. This has resonated from lack of transparency and accountability across the whole mining value-chain, coupled with narrow scope and levels of the fiscal arrangement," read part of the communiqué.

"The multinational corporations continue to undermine and manipulate national laws, standards and regulations, resulting in the worsening of the situation on the ground. In addition, the Zambia Revenue Authority's limited capacity to monitor, collect and enforce tax laws has worsened the status quo."

They demanded that mines be owned 51 per cent by indigenous people to have a fair share of the profits realised from mining activities.

Presently, most mines are majority owned by foreign companies who are allowed to externalise 100 per cent profits under the Zambian laws.

"As owners of the natural wealth, we demand that Zambians be given the first priority in owning, prospecting and awarding of contracts," they stated.

"It is also imperative that Zambia's government monitors and controls capital flight."

Additionally, they asked the government for a clear, transparent and consistent contract awarding mechanism ostensibly resulting in maximising the benefits of extractive industries while promoting ethical investments.

The interest groups noted with concern that the Zambian government lacked the political will and capacity to negotiate contracts that should result in maximising the benefits of mining, while promoting ethical investment.

"Realising that mining contracts are shrouded with secrecy, we demand that there must be a clear, publicly disclosed and consistent contracting mechanism," they stated.

"The government must review all current extractive contracts based on best environmental management and social standards. Parliament should be actively be involved in the ratification of mining contracts to protect the interest of the Zambian people and enhance accountability."

Participants for the parallel indaba that was held under the auspices of the three Church mother bodies namely: Council of Churches in Zambia, Evangelical Fellowship of Zambia and Zambia Episcopal Conference, were drawn from South Africa, Malawi, Zimbabwe, Mozambique, and United Kingdom.

Labels: CSO, DEVELOPMENT AGREEMENTS, MINING, TAXATION, WINDFALL TAX

posted by MrK @ 3:15 PM