Mopani Mines has commended the PF government for not succumbing to pressure to reintroduce the controversial mining windfall tax.
Mopani Board Chairman Emmanuel Mutati says the current tax regime in the mining sector is favourable enough to encourage fresh investments.
Mr. Mutati explained that the 2008 mining windfall tax would have destroyed the mining sector if it had not been repealed.
The Board Chairman said the structure of the windfall tax was damaging to the sector as it was imposed on gross revenue unlike other countries to tax net profits.
He said the current mining variable and the mineral loyalty taxes are adequate to encourage the growth of the mining sector.
Mr. Mutati was speaking today when he met selected Business Journalists at Mopani’s new corporate offices on Alick Nkhata road.
He said Mopani Mine’s parent company Glencore has today invested over 2 billion US dollars in its operations in Zambia.
It worries me when the learned Zambians entrusted to manage these foreign owned companies are the same ones who sell us out…. What a miseducated lot! Education has not changed the mindset
Thats why we keep telling you education is not the only way one can lead the country, the so called intellectuals have failed us, they keep selling us to the enermy…I read an article about the Kagem leaving zambia because the state wants the emeralds to be processed in zed, let them leave if they are not happy more stones for us.
Before you know it, they join policts pretending to champion the cause for the poor masses. No shame, no morals, no conscious and clearly heartless!
I totally agree with you! I think we should start entering into consortium with foreign firms so that we have equal stake in the ownership of our mines for the general citizenry to benefit for the natural resources endowed in our lovely country. May the Lord help us to come up with a cause cause to the problem we are facing locally and globally. Leadership has nothing to do with knowledge, wisdom matters.
leave mutati alone… he is busines man who is make an honest living.. earning his money honestly. He has a family to fed.. your government should look after your interest.. ala! you are not mutati´s babies..
If your government fails to reintroduce windfall tax in 90 days of being in office, mutati is simply say thankyou.. its not his problem..
Let Mutati eat.. the way mmembe and nchito are doing… ivivintu in ku dyela pa nchito
Ndobo: Your warpped assumption is that because we are blogging on this subject, we are not business minded! You are so wrong. The concern is for the poor people who could benefit from our resources. Your thinking appears too shallow to me.
And that is Africa’s biggest threat…ITS OWN PEOPLE…this so called chairman should know better…more investment my boot, its not like copper grows in Zambia! What has he to say now that the copper prices are falling…are we to expect more investments??? for years we have lost out on our resources…we holding on to less then 5% of what is being produced via our mines…when a country like Norway holds on to about 94% of what is produced from their natural resources (oil)…its madness…
@dojo.. who is suppose to know better.. that copper does not grow?? mutati or the Government??,,, who is suppose to be the first in serving and protecting the interest of zambia and zambians??? mutati or government????
Ndobo: Who is the government? Everything starts from our individual actions. You need to take personal responsibility for our country to progress…
Ndobo…Democracy is about accountability…without simple logic via education the masses are misled…hence concurrent govts abuse us in Zed…we always wait for ‘something’ to be done for us…instead of doing something ourselves…your thinking in this, that govt should take the led which they are not hence NGO, the opposition or pressure groups should push the govt and educate the masses concerning how to go about many issues in Zed…all these tokens we are getting from the Chinese are coming at a great price…we have lost our chickens and are now lining up for eggs…simple logic, whats your 10 year plan? see, you have a 1 or 2 year plan (hope am wrong)…we need to start thinking about 20years ahead, about all the kids and not only ours…YOU ARE THE GOVT Ndobo…chew on that…
These chaps are reaping us of the cash. windfall tax is the only way we can benefit from these mines other wise all the monies will go outside. The issue that investors will run is a cheap & lame excuse, if they run lets run the mines our selves we just need proper management
Govt can not run a mine, its too capital intensive and expensive
The US 750,000,000 Euro bond is not even enough to build a modern copper smelter
For sure its proper management we only need.
#2 Let us run the mines ourselves, and do what with the produce? All the users of our copper are overseas. The Indians, Chinese, Europeans and Americans are the ones in of what we would produce.
We don’t have any industries to use the minerals we produce. Shame!!! With Makasa University in Chinsali, what do we hope to achieve?? This is yet another extension of secondary school education. Not a real University to bring about development. The Indians and Chinese send space ships with our copper and cobalt components. They have real Universities which need our copper.
whether they re introduce the windfall tax or not if people in power have no feelings for you kwasila that is your agony if you dont plan for your future.
The tax base in zambia is so wide,broad but money is not put for good us.why should you cry for the greedy people to fill their pockets while you are suffering.GET A LIFE!
Start a life for yourself either kantemba or grow tommatoes and take them t o soweto and forget about WINDFALL TAX and politicians.PERIOD!
Mbo Sam..This is yet a clear example of how an African thinks! Self pitty and an absolute lack of self confidence. I wonder what advice you give your kids if any..
Already there is no production at Collum Coal Mine because it is in state hands.
Mutati you are a sell out, selfish b&^%t
leave mutai alone!!, he is not a sellout. Sata is, one of the promises which copperbelt loved and voted for Sata was the promise is reintroduce windfall fax
yes, he is a sellout ! bought and paid for by international mining companies !!
@Rosco… understand that mutati is busines man he wants to make money of himself anf his family, you did not vote for mutati for him to get that job therefore he cannot protect your interest… you voted for PF so that they protect your interest as zambians… thats also the reason why you have ministry of finance, ministry of mines,, etc and the president himself.. to protect your interest…
Now if your government is in bed with GLENCORE having unprotected sex… and mutati makes an anouncement that srewing zambia in backside is so `sweet` and commends the government for bending to expose the hole.. then you want blame mutati.. come on.. think!!!!
Ndodo your comments are misplaced. Bitterness at its best!
Ndobo, your comments are misplaced. You are too bitter to post objective comments
I dont see what Mutati has done wrong.The guy is just thanking the goverment for not introducing the promised windfall tax. This means that the goverment (including you and me) has analysed the issue and the conclusion is that windfall tax is not good foe the mining industry and obviously the country at large.
#3 A spent and useless politician, whose name a cannot even mention, recently came out very honestly and confest to the nation that “we all need to be in government to eat” Don’t blame Emmanuel Mutati. He is not a sellout. He only wants to eat. He has a family which needs to eat well.
A very good liar indeed. He is speaking as if he is not Zambian. Who does not know that the mines are reaping more than what they have sown? Please give us a break.
Peace and Prosperity to Mother Zambia.
Is Emmanuel Mutati a Zambian?
Just the name Glencore makes me shudder and start to cry, really sad!
“Don’t gain the world and lose your soul, wisdom is better than silver or gold” – Bob Marley
Hearing this name ‘Glencore’ makes me sick. They have been accused of evading taxes and child mining in Congo.
This is what happens when your leaders promise you one thing and in the dark, in your absence they shake hands with the devil and you cannot see them!!!!!
Those who watched the programme “Why poverty?” on BBC will recall how the stupidity of Mutati and that of Bantubonse was exposed. These two men were busy defending mining companies but the programme was also showing the havoc that these companies are causing on the environment and the local communities. I am not surprised that Mutati is nothing but a mere “His master’s voice”. Shame on him!!
i watched it.. the biggest sellout are african governemnets who promise, promise and promise heaven for their people and never delivery. These very governments end up having unprotected sex with those industries who ripoff their people, at whose expense??,, ask yourself!! .. so mutati is not the problem here!!!!
how is this a good thing, i watched a documentary “stealling africa” and im all for zambianisation. maybe super K was not wrong after all
you people should think twice….so you want mutati to say windfall tax is OK when you know very well that its through his rantings thats where he realizes his bread and butter for his wife and kids…HH wont rule Zambians take your bitterness to watchdog!!!!
Emmanuel Mutati, the current tax regime in the mining sector is favourable for your pocket and not for an ordinary Zambia. PF will be kicked out for their U-turn on windfall tax.
we are tired of crooks and sell out… revoke their mining licences and kick their as.s into orbit !
According to NGOs in its 2010 pilot audit by Grant Thornton, Zambia and Econ Poyry, Zambia lost an estimated income of USD 175 million in tax revenue between 2003 and 2008 from tax avoidance practices’ by Glencore AG International owned Mopani Copper Mines.
copper from Mopani is sold under a contract with copper in one instance being sold at 25 per cent of official prices at LME. In other words, they are not paying taxes over 75% of the copper sold to Glencore.
During the period under review, Action Aid estimates that the Zambians government lost an estimated USD 50 million per year in undeclared dividends to ZCCM IH by Mopani Copper Mines
continued
During the period under review, Action Aid estimates that the Zambians government lost an estimated USD 50 million per year in undeclared dividends to ZCCM IH by Mopani Copper Mines, according to Action Aid was avoiding declaring anydividends by ZCCM IH through transfer pricing and over statement of the costs.”
“The auditors found that MCM resisted the pilot audit at every stage. The company’s book-keeping was incomplete, several legally required documents were lacking and the general ledger analysis showed several loopholes and couldn’t be matched with the trial balance,” the organisations stated. “The auditors also found an inexplicable doubling in the costs of the company between 2005 to 2007, which shows that the company has been artificially inflating its costs
@Rosco: Brill ! Thats just it. Mutati like most of these “Mzungu wanga technocrats” just forgets where he’s coming from. Where others travel to Switzerland and petition Glencore WITH the help of Europeans over this swindle( Good copper,Bad copper), the likes of Mutati only see themselves – if you can’t help the ordinary people, get out and earn a living out here. As for the most of us our hearts are still pa Zed but the government MUST give us DC, then we can get talking. ZCCM lost thousands of brilliant young zambians because of the same attitude from the likes of Francis Kaunda, Chileshe, Bwalya Ngandu..name them! At least David Phiri tried…Good point Rosco, bravo!
continued
costs to minimise the profits shown in their books so that they could pay less taxes. Despite the fact that the audit was finished in the fall of 2009, it was kept secret.”
looters OUT !!
In business you commend when you are reaping.
Emmanuel Mutati seems to speak a lot as a chairman. Where is the CFO and/or the MD to comment on this. Maybe it’s cause the other guys are non-Zambian. Anyway one day sanity will prevail in the mining industry where the poor keep losing out.
These chaps,just to feel up their bellies.Muzungu anikonde…….i hate!!
@paolo… you are also muzungu anikonde, thats why you a using a muzungu name and you are in muzungu land… that also called muzungu anikonde..
Mutati is speaking nonsense. It seems now he is a PF cadre that stupid guy.
mutati is speaking sense for busines, himself and his family at least… its not his problem that pf government failed to reintroduce windfall tax
The heading should have read ‘Mopani Mines commends PF government for being NAIVE’. Chairman should have continued…’Because of PFs Naivity, Glenco is now Ripping… and leaving Zambia bare and seriously impoverished never to recover again because the copper we are stealing with the permision of the PF gvt will never be replaced’. ‘After the Copper is finished, we will park our laptops and leave Zambia as laptops are the only assets we have leaving behind tunnels which will flood.’ ‘ As Mopani Copper mines we will continue to outsource and pay these impoverished Zambian Contractors PEANUTS which peanuts will be passed on to their employees. When gvt asks why Miners are paid peanuts we will tell GVT that it is their own people paying fellow Zambians Peanut’. MUTATI, USEFUL I.D…
I think its time Zambia began to attract secondary industries and create incentives for cottage industries that use copper as raw material, instead of just focusing so much on taxing the hell out of the raw material copper. Industries will create jobs, whereas tax revenue will only go into govt coffers and end up into hefty allowances for some board member. Let’s think outside the box. Why can’t Zambia produce electric switches? sim cards? Brass ornaments etc AND THEN export.
@ cactus this has been my question for ages; and I remember a few months ago Mr. Sata asking the same question and making a statement that Zambians are stupid for selling raw material copper and not producing finished products themselves. Why he cannot act still remains a mystery.
Excellent thought Cactus. You are shinning bright like a diamond in the sky.
@cactus
your/s question.. answer:zambia needs political will and political drive, people who come to zambia to do bussiness must a pay tax fairly.. then that tax must be put to good use.. not bribing opposition MP to join PF and bye elctions.. thats thinking in and outside the box..
@zikoma
your president should not be asking questions.. he know whats wrong, hes has been in politics and previous governments for a long time,, zambia need solutions not useless question from the president..
Spot on…this is the selfsame strategy that promoted economic growth in South Korea through labour-intensive manufactured exports, in turn gave it a competitive advantage. And this has handsomely paid off considering the level at which South Korea’s major companies have penetrated markets worldwide; for typical examples being Samsung and Hyundai are now global names in the electronics and automobile industries,ship building respectively.
@Fulunyemba, absolutely right! Our privileged Zambians always take care of number one at the expense of the masses. So long as Mutati gets paid in Dollars and can go to Geneva, London or Paris at any time, he doesn’t give a toss about the struggling poor whose taps dont have running water, rationed power let alone have decent medical or educational facilities. I bet he gets educactional allowances for his children etc. Basically, what I am saying is, with all these privileges, does one expect Mr Mutati to advocate for an equitable distribution of revenue from the mines?
Traitors !!!!!
These are educated Zambian who are put in positions to protect Zambians yet they protect their own pockets.For all of you in doubt see this documentary and judge for yourselves.
http://www.youtube.com/watch?v=uamzirLswjk
Here is another reason why we better readers in our country.Please analyse this video and you be the judge?
http://www.youtube.com/watch?v=pgGI_3kTE48
Windfall tax again! The PF should have thought through things carefully before going on rampage promising what they could not deliver. Now threy are being held accountable for failure to deliver. What we needed was a clear explanation and implication of introducing windfall tax. The PF used the reintroduction of this tax as their main campaign tool. Now things have backfired because they were promising without thinking. Reality has dawned and the *****s are failing to deliver. This will cause masses to rise against this government. There is a lot of deception and people don’t like it. When politicking please tell the truth. People don’t forget and for the PF it is even worse because they have recruited feather-brained cadres in key positions who are failing to deliver. What a shame!
MUST SEE LINK. PLEASE CHECK OUT HOW PEOPLE HAVE BECOME RICH DUE TO COPPER FROMZAMBIA
https://www.youtube.com/watch?v=pgGI_3kTE48
Leave Emmanuel Mutati alone he is merely doing what most Zambian professionals excel at; sitting on boards & letting someone cut a cheque for them. He is a tool for Glencore a useful one for that matter the black face of the company. The man is merely an uncle tom, field n*gger, I can bet this man will never raise to any position higher than that in the Group and the closest he has ever come to rubbing shoulders with his South African-Australian-Israeli triple citizen Glencore CEO Ivan Glasenberg is at company’s entrance.
Emmanuel is oblivious to how much money he makes for them or that small town in Switzerland that benefits via transfer pricing. In fact if he applied for residence there they wouldn’t consider him..he is not worthy.
We only have ourselves and our docility to blame.
This is like being in the boxing ring and your opponent telling you that you did well not to hammer me with an upper cut….
This tax is not good, research before making comments. When mines close u will be the first to cry again. I am in this business and i know the challenge this sector is going thru.
mm, pliz watch good copper bad copper on u tube and then,
come back and let us know what yr views are after watching. Thanks
Please elaborate or articulate which side of this “business” you in….merely stating “this tax is not good” is not helpful to contribution especially if you happen to be a foreign investor.
*****
Iwe chi Mutati. U ar such a sell out!!! Mopani and it’s major shareholder
Glencore ar the biggest hypocrites. Sad to know that the stealing
is happening under the so called ‘highly educated’ Mutati, or else he is
chewing with them. Mr Mutati kindly watch this video on youtube ‘ZAMBIA: GOOD COPPER BAD COPPER’
and inform the nation what yr views ar regarding the same..::
Who the hell is this ‘hired useless ndobo’ who is replying to each and every comment. Who doesn’t know Glencore, surely?????
Its people like e.mutati who have caused so much poverty to the zambian people especially on the copperbelt. He is a thief and greedy. Educated but a boot licker and sneezy to say the least.
Stoopid mutati.
why has the current Minister of Mines Yamfwa Mukanga failed to take action on Mopani’s scam, whereas in 2011, he stated “Mopani should be punished” ???
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postzambia 18306
MOPANI Copper Mines must be punished for evading tax, says a member of parliament in whose constituency the mining firm operates.
Yamfwa Mukanga, who is member of parliament for Kantanshi Constituency in Mufulira district, was commenting on the pilot audit on Mopani Copper Mines, which revealed glaring inconsistencies in production and revenue figures the mine submits to the Zambia Revenue Authority for tax administration, figures which the report indicated might not be trustworthy.
Mukanga said no government official must protect Mopani Copper Mines for violating the law by evading tax.
continued
“I want to see the law taking its course. Let the law visit Mopani and we see what is going to happen. I believe they are not just evading tax, I believe that there are people in government benefiting from this,” Mukanga said. “I am disappointed that the government has been crying every day and yet it is letting Mopani go scot-free. I want to go to Mopani and talk to management.”
Mukanga said the decision by the government, through ZRA, to protect Mopani and underpaying the mining firm’s evasion of taxes raised suspicion.
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a lot of talk but zero action !!!
This impostor only lines his pockets
Glencore…Glencore….. who will cry for our children …. Keep singing, keep singing praises for your PF as we bury them one by one before they even turn 10. Vote for HH he understands business that’s why he sits on so many boards some of which are in Europe. Swallow your silly pride – why are you always anti-Tonga the first settlers of this land who knew how to mine copper before the white settlers brought their machines to plunder the country. On top of that, they fed the country through their knowledge of commercial farming and raring of animals to give us the much needed proteins. Zambia is not one tribe! Zambia is bigger than Bemba, Tonga, Ngoni etc. One Zambia One nation. Bring back Zambianisation like the English are doing in the uk by re-owning some of the banks.
The worrying bit is that our brothers and sisters are not even participating in this debate as I can only see foreign flags suggesting that the participants are mainly in the diaspora. Educate the nation of these ills. Spread the news! Let every Zambian – young and old know that we are being savagely raped by Glencore whilst our leaders stand aside and watch. Our saviour Mwanawasa is long gone. You can even begin imagining foul play in the cause of his death! He was on the them like a leech and being a lawyer he wasn’t gonna let this one slip the net. We are rich yet so poor and hopeless as we do not bring into power daring leaders like Late Mrs Thatcher for the UK. I don’t live in Zambia but I plough a lot of money into the country for my family there. In that respect I am doing my part
It is like the Fox commending the Farmer for keeping the door open to the Chicken house!!!
The worrying bit is that our brothers and sisters are not even participating in this debate as I can only see foreign flags suggesting that the participants are mainly in the diaspora. Educate the nation of these ills. Spread the news! Let every Zambian – young and old know that we are being savagely abused by Glencore whilst our leaders stand aside and watch. Our saviour Mwanawasa is long gone. You can even begin imagining foul play in the cause of his death! He was on the them like a leech and being a lawyer he wasn’t gonna let this one slip the net. We are rich yet so poor and hopeless as we do not bring into power daring leaders like Late Mrs Thatcher for the UK. I don’t live in Zambia but I plough a lot of money into the country for my family there. In that respect I am doing my part
One of PF’s campaign promises.Do we record this as part of the failures of our Government ?