Economy

FQM: High Taxes A Big Challenge To Mining In Zambia

First Quantum Minerals Country Manager General Kingsley Chinkuli has observed that Zambia’s mining industry is failing to compete favourably in production due to high taxes.

And Gen. Chinkuli has appealed to government to quickly realise the economic diversification program to reduce pressure on the mining industry.

Speaking on the sidelines of the seminar organized by the Chamber of Mines with the Chilean government, Gen. Chinkuli said Chile has managed to grow production in the mining industry due to stable and low tax regimes.

He said there is need for government to realise that mining has great opportunities on offer as opposed to taxes only.

Gen. Chinkuli said the Mining industry in Zambia has highly been taxed but can as well be used for job creation as well as enhancing economic development in different communities of operation.

“Currently the taxes are too high and this is affecting production in the mining industry, we need to get to a round table and see how best we can help one another of these issues, Zambia needs a stable tax regime to help improve production in the mining industry” he said.

“There is a lot we can learn from Chile, we have to continue with such engagements, I was once Minister of Mines and we had a lot of interactions to see how best we can help one another in this sector” he added

Gen. Chinkuli however said the mining industry I’m Zambia is under serious pressure due to its contribution to the country’s economic growth.

“You see Chile only has about 6% of its export earnings from mining that is copper but here in Zambia we are talking about over 70%, this has contributed to so much pressure on copper production”.

He said government needs to take advantage of the mining industry’s contribution to help grow other sectors through its diversification program.

Gen. Chinkuli said there is need to see the agriculture sector taking centre stage in sustaining economic growth and also help reduce pressure on the mining industry in the country.

“We cannot always depend on copper production for our export earnings, we need to look at other potential sector of the economy like our friends are doing in Chile,” he stated.

13 Comments

  1. Sj

    Year in and year out we here budget speeches that include diversification in the economy but in the field of Agriculture very little is realised on the ground.
    For agriculture, livestock and fisheries surely can’t the state release sufficient funds to go to livestock and fisheries? Or it awaits some Investor from whereever to boost its production.
    Ngandu Magande in his time spoke so much about agricultural imputs that worked. Why not try some of his policies that worked.?
    Have imputs for agriculture been sent to farmers yet for this beginning agriculture season? Can any tell us if youth empower money has improved the lot of youths. Comment

    Reply
  2. Ndindindi

    Ba sj,elyo mwalandapo fye ifya mano since you started contributing on this platform,nice one.

    Reply
    • Sj

      Such are points of discussion whose answers would be sought after when Parliamentarians meet in Parliament. And since questions are submitted earlier before Parliament meets one expects well researched answers. But this is never the case or if it is, it includes flying ‘fists of fury’ and bad laguage outside Parliament building from the very Lawmakers in the land. Instead of using the time to unwind. So is anyone available to give us answers to the prior contribution about youth empowerment? For a review should be give on how the previous Budget behaved(at least a brief outline) i.e it’s successes/failures. Comment

      Reply
  3. Dununa

    Ba chinkuli, if you were “once minister of mines” why did you not make sure you attended to the very rubbish you are complaining about? Zambia, we have very selfish people indeed. When they are in Govt they are just busy looking at their pockets. Next when leave Govt again they are thinking of their pockets by blaming their own previous ineffectiveness. And Zambians will be there applauding the same corrupt individuals. Tomorrow they are the loudest in opposition wanting to get back in Govt. And such is the leadership in Z & people expect development.

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  4. vian

    And those words are coming from a zambian, wat then are we going to benefit from these mines? zambians who work for them get peanuts,their corporate social responsibility is below bar

    Reply
  5. mengmoreler

    Ba sj mwalanda bwino sana,bt let m tell u.the bible says that”the kingdom which z ruled by a drunkard king,it z a perishing kingdom and that’s were we’r nw has Zambia.

    Reply
  6. Giogio

    These companies don’t pay equitable taxes so the general should get his facts right. Govt tries to collect but creative accounting always thwarts those efforts. They also get tax breaks. So why is FQM complaining?

    Reply
  7. Pman

    Higher taxes where does the money go.coz we still bad roads,delayed salaries ,teachers conditions of service,what, what what…. Ine kudabwa…

    Reply
  8. larson

    Kambwili. Is. Waitng is. Time..

    Reply
  9. Kachi

    No bwino bwino pa zed

    Reply
  10. jigerman

    Commentpeople just complain evn over wat is light. inlike the case of moses go on pf.

    Reply
  11. ianmwanza

    zambia for zambians,those mines are benefiting foreigners y?

    Reply
  12. Gucci toetag

    Subsidies have been cut, there is a raise in tax and the government borrows more money from the IMF.
    this shxx don’t add up.

    Reply

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