Reuters reports that Zambia will negotiate larger shareholding in foreign mining companies and plans to revise the tax collection mechanism to improve transparency and maximize benefits for the country, the minister of mines said.
“We would like to increase our shareholding to at least 35 percent in all the projects but that will depend on how well we negotiate with the mining firms,” mines minister Wylbur Simuusa told Reuters in an interview late on Wednesday.
Simuusa said the decision to seek a higher stake in the mines did not amount to nationalization of the mining sector in Africa’s top copper producer.
Meanwhile, About 500 workers walked off the job on Thursday at Chambishi Metals cobalt plant, seeking higher wages from the Chinese-owned firm in Zambia, union officials said.
The strike is the latest labour action to hit the country since new President Michael Sata came to power a few weeks ago and emboldened workers by saying he will fight for better pay and working conditions.
The Chambishi cobalt plant is majority-owned by China Nonferrous Metals Mining Corporation.
More than 2,000 striking Zambians at other Chinese-owned mines went back to work this week after winning nearly 100 percent pay increases.
[Reuters]
Nothing wrong with that has long as it is done properly. They bring their money, they get our copper, they leave us something after using our people.
good move, lets all benefit kaili.
Good heading. As opposed to Sata wants 35% stakes in mines! Sata this Sata that…
It is high time Zambians profited from their wealth in natural resources. If not now, then when? Zambians, copper is OURS. If foreigners want some, they better pay down for it and give us our fair share. For so long, a few foreigners have been getting too much while the majority of Zambians have none. Thanks to the new government this is going to change.
It is a tricky issue we need to tread carefully. I woud go for indigeneous owning shares in the mines, not GRZ. Empower ordinary Zambians to buy shares in the mines. It calls for a lot of debate.
Zambia is overwhelming poor, ranked in the bottom ten in Africa. What are you talking about, only the government can provide services to the masses, not private citizens. And for it to do that effectively it need a large base of income, and having a large share of the countries income from resources is one way. It doesn’t make sense for Zambia to be getting 13% from its own resources. Get real. Private citizens won’t build schools, hospitals, roads, invest in education in all corners of the country. Learn from the Scandinavians.
Thanks you Reuters for this update. What happened to your opinion poll by the way? As responsible journalists, you can also report that your prediction was ”wrong”? It is newsworthy you know…
Let’s just wish the govt good luck on this one. The mines companies were given freedom initially but they chose to abuse it. If they don’t want windfall tax, then let’s go for increased shareholding YES! Copper is a finite resource, everytime you dig ore out it is not replaced – so 20 years from now they will all pack up and leave you with nothing if you are sleepy.
GOOD MOVE BY THE GOVT PLZ DONT LET THESE FOREIGN INVESTERS CONTINUE EXPLOITING & SIPHONING OUR RESOURCES.
Yes, let us have a reasonable share in our own resources
Not a very bad move.We have seen it even in developed countries.Good for the sake of transparency.
Spit on Chiluba’s grave for giving the mines away in the first place. Is Edward Shamutete still alive?
Mother Zambia produced these mines, Mother Zambia’s children work hard in these mines and yet we have to negotiate for less than a quarter share of 35% of what is 100% rightfully ours. Naturally this situation should be the other way around with the investors negotiating with Mother Zambia. I hope our government can follow through with this and let this be the first of many negotiations to take back what is ours. I commend our government for wanting to restore ownership back to Zambia and I hope they can follow through. Its also good to see that most of our bloggers are more positive and constructive. Cheers my fellow Zambians.
Oh my God you are so right could not have put it better myself
In China, a foreign company cannot hold more than 50%. We should give the Chinese their own medicine. That’s how China developed by doing joint ventures with companies from the West.
We are so hopeless or corrupt or suffer inferiority complex that we didnt demand such joint venture in the first place. All we could have said is “We have copper, if anyone wants a cut, please provide the money for digging the copper out and we will share the proceeds”.
But alas! we had thieves in govt.
” In China, a foreign company cannot hold more than 50%. ”
There should also be clear punishment for not paying taxes, hiding revenues, as well as environmental pollution and labour rights.
If they violate any of the above, share ownership should revert to 51% to 100% for the state.
It is the lack of regulation and consequences that encourages corruption.
Good way to go BUFFOON RB and Ka Chiluba & Co. cut deals all for a little brown envelope…good news!!
Way to go big up Wylbur continue with this good fight it will yield wonders. My plea to fellow Zambians is lets work hard we are too lazy.
Exactly what Bob Sichanga and other ex-UPNDs used to urge the previous governments to do,PF government is in a better position to renegotiate these agreements. The government should also look into land ownership.
Wonderful move. Let ordinary Zedians buy shares too!!!
Long term solution to employment and income for Zambia is to process the copper to finished products and sell to the world. Someone please do that. Where is all the copper going. Find out. And do it at home. You will create employment and bring much needed income to Zambia.
it used to be done during KK time, l remember going to 2 plants on the copperbelt where the Siame,s used to make finished copper products for export. But when the fools came in they let the investors ran the show. Change is good when it helps the locals like it looks with HE Sata<s govt
Please do the same for the emeralds kwesu kwa Nkana and other area..Ama sene-sene are rich for mahala.They cant tarr the roads,no electricity for the community,cant build hospitals or clinics.Katumbi, Katoto got more than enough from theat area.EG in Botswana govt owns 50% shares of all mines not windfall or whatever tax!Employment: you prioritise a local qualified citizen.Or he or she works under a foreigner for atleast 3 years after that the local takes over position.It’s -take it or leave it situtaion, its our naural resources.
Indeed that is the spirit of a human being. How do these politicians feel to see their people suffer so much in the abundance of so much natural resources…
Thats what we call working, Its high time the govt benefited directly by owning shares in the mines so that that its revenue can increase and offer some relief to us the overtaxed workers through tax reduction.
& the Windfall tax talk? You see that criticism is addictive ka!
Btswana has 49% shares in all the mines. and they change the directorship. 3 years the government apoints after 3 years the investors appoints. this has worked well for them. why not zambia?
lets reap from our minerals…!
We have been down this road before. What is needed is getting rid off the institutional racism of paying anyone,( irrespective of skin colour) who is Zambian, peanuts. The term expatriate must be banned. It must be equal pay for equal work. Ownership is a myth if Zambians will continue subsiding the salaries and profits of whoever owns the mines. Let the Zambian workers decide how they spend the money they earn through their sweat, not a company or Government. I rest my case.
Very good point raised by Simuusa, iam suprised at low number of bloggers on this very very important topic. I thought more money in the pocket starts from here!!!!!!!!!!!!.
It’s about time!
That’s a fair request, Well Done Zambian government; yes we need a stake in all this. Thank you lord that MMD is gone; I wonder where we would have ended. I cannot believe that they just gave everything to Foreigners. This is why ZRA really screwed us in every corner when we try to send vehicles for our poor relatives back home. Because it was the only Government’s t source of Revenue. Hence an opportunity for ZRA workers. They should all be arrested as they stole a lot from Zambian people from Taxes. Corrupt Chaps, we can even publish your names???
President Sata and PF at work> Where are the “Bootlickers” and company here? No more?
If i am just dreaming that mmd is really gone, pleeeeeease dont wake me up somebody!!!!
Caution, don’t celebrate too early these things come at a price. The government has to purchase that shareholding at market value, it’s not for free and it’s not cheap. It may take the shareholding by P (PF=amaka), but with severe repercussions for Zambia. It’s easier said than done. You will need shrewd negotiators.
I feel that a higher percentage, say 45% to 50% for essential institutions would really benefit us. Though I feel that GRZ should be a sleeping partner and should not make any decisions, unless one really needs to be made. This ensures continuity in the event that the investor decides to leave the project. It also ensures that the investor does not exploit our citizens.
Good move.Zambia is for Zambians.Investors should be made to know that.God gave us these natural resources for our benefit.
I DREAM OF WAKING UP A IN SOMEDAY ZAMBIA WHERE,SUMSUNG,NOKIA,BENZ,TOYOTA RENAULT PHILIPS ZAIN OH SORRY AIRTELL MTN WILL ORDER THEIR ELECTRONIC PLATES MEDICAL UTENSIL PARTS FROM A ZAMBIAN COMPANY JUST LIKE PROF CHIRWA SAYS THAT WE HAVE ALL THE MINERAL RESOURCES ON DEMAND IN THE ELECTRONICS AND MEDICAL INDUSTRY TODAY. CAN U IMAGIN HOW MUCH MONEY IS THERE IN SUPLYING THE WORLD MARKET EVERYDAY.
This is good debate and right move. Bravo pf
Zambia need a mine of their own to compete with then other existing mines. If anything we need , one Diamond mine in Kalabo or Chavuma, one Gold mine in Mumbwa or Solwezi, one copper mine in Solwezi or the copperbelt and one cobalt mine in wusikili or Mkushi, all to run and compete with foreign investors and pay as much as they do.Create jobs for Zambian engineers and make money at the same time.
And someone said Zambia needs China more than China needs Zambia? They award a 100% wage increase and still wanna operate in Zambia?
With King Cobra and PF it has all began. ZRA really gave it away. Check with Safari Operator in what they give as Service Charge. No transparency.Bravo PF and King Cobra. We are behind you. We strongly believe in you and you can definitely do it. Check their books please. We pay less tax because they still from us.
Point of correction, Chambishi metals is not owned by the Chinese… lets be objective in our reporting Lusaka Times. We depend on you. Do not lose it.
Actually we used to have 100% in ZCCM., then stuff happened.
Sometimes we can hold the bull by its horns and face the world head-on. We can do better by havinf a 50% holding; we put in: land, the resources, labor force (80%), utilities and good taxation terms for the mining firms. We can also take up the challenge of paying salaries to the 50% of the labor force(local) and provide the necessary utilities. They can now put in equipment and capital investment for the other 50% share. We can run a State-Private Partnership.