The mining sector remains a significant part of the Zambian economy, accounting for over 9 percent of the GDP and 70 percent of export earnings. The sector is also a significant source of government revenue and formal employment, both directly and indirectly. We have a long history of mining and a large known resource base of copper, emeralds, gold and other deposits, with potential for further discoveries. Mining is also instrumental to domestic commerce through mine suppliers and the supply of raw materials to industry.
The UPND manifesto, among other things, tackles various status reports of the economy. The mining sector being one of the areas the manifest seeks to optimize. According to the manifesto, the following are ways in which the mining sector shall endeavour to be improved
a. Undertake a major mining sector policy reform including tax policy and administration reform that will bring various stakeholders on board to design a sound policy and administration system, with broad policy consideration that will stand the test of time.
Hon Paul C. Kabuswe said that, “the government has been consulting with key stakeholders to review the mining tax policy framework in order to design and develop a fiscal tax regime for the sector that will be stable, predictable and competitive to ensure sustained investment in the sector. This will also attract both local and foreign investment in mining and ultimately scale up mineral production in the country.”
b. Enhance monitoring and oversight mechanisms and technologies to reliably ascertain the volume and content of mining output for taxation purposes to ensure Zambians receive their fair share.
In addition, Honorable Paul Kabuswe in his statement addressed how his ministry will enhance monitoring and oversight mechanisms and technologies to reliably ascertain the volume and content of mining output for taxation purposes. Further, the government will equip officers managing the mineral output statistical evaluation system (MOSES), mining cadastre administration system (MCAS) and those deployed at border posts to enhance transparency and accountability of the mineral resources.
It is worth noting that with the aforementioned, the UPND’s manifesto read together with the statement by the Minister of Mines and Minerals aims at bringing about transparency and take key strategies in ensuring that mining outputs are accounted for.
c. Put in place a national supplier development policy for the mining industry to increase the local supply of goods and services to the industry
President Hichilema’s market-friendly stance will attract new investment into Zambia’s mining sector and help boost the country’s copper production at a propitious time of near record-high copper prices. Zambia as a whole hopes to increase its annual copper output to 2 million tonnes by 2026, new Finance Minister, Situmbeko Musokotwane, said last month. The country produced 882,000 tonnes last year. Mines must produce more since copper prices are forecast to remain very high in the next 15 years. This is why on many occasions UPND has expressed the intention to see copper production rise to three million tons in the next ten years.
d. Work with the communities and the investors to ensure that the development agreements entered into with the Government balance the provision of incentives with concerns of the communities such as environmental impact and labour issues. We shall also collaborate with investors to scale-up the clean-up of legacy environmental damage build up over the years.
The Minister of Finance illustrated that the Ministry is collaborating with cooperating partners that promote the development of industrial minerals such as the African Caribbean Pacific European Union Project (ACP-EU). Furthermore, the Ministry is encouraging exploration activities around the country in order to identify possible green field mines that can lead to increased production.
In light of the aforementioned initiatives, business linkages will be established with players in the mining value chain. This will be done in conjunction with the newly established Ministry of Small and Medium Enterprises to promote value addition to the minerals especially for artisanal and small-scale mines.
However, even in the current government’s aim to implement mining policies, which is a significant economic boost of the country’s GDP, it is important to also put into consideration the impacts of mining on the environment and the country’s citizens. For example, mine exploration, construction and maintenance may result in land-use change, and may have associated negative impacts on the environment including deforestation, erosion, contamination, and alteration of soil profiles.