Economy

Sata Demands Reports from Mining Companies

The Patriotic Front administration of President Michael Sata has introduced regulations to compel mining companies to provide information on tonnage, type and grade of ore mined, including operating cost sheet and production figures, a move aimed at increasing revenue to the treasury.  However industry analysts see the announcement as another indication that the state intends to intervene during the current period of high prices to change policies.

According to Statutory Instrument number 34 of 2012, mining companies would be required to submit reports on the recovery percentages and efficiency of all mining and metallurgical processes and balance sheet showing the disposition of all metal and mineral products depleted from the ore reserves.

Other requirements for mining companies include providing a statement of work carried out on capital products and expenditure and availing quantities and grade of end products produced, quantities sold and average price of selling prices.

Announcing the development today, mines minister Christopher Yaluma said mining was Zambia’s key economic sector.

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