Thursday, October 3, 2024

Government Moves in to Curb Loss of Revenue Earned Through Mineral Royalty Tax Payment

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The Ministry of Mines and Minerals Development has announced that with effect from 1st July, 2020, the Ministry will no longer accept samples submitted by exporters to the Chemistry Laboratory at the Geological Survey Department in Lusaka to facilitate the issuance of export permits.

Currently, every client who wishes to apply for a mineral export permit submits a sample of the export consignment to the chemistry laboratory of the Ministry.

Ministry Permanent Secretary Barnaby Mulenga says based on the sample analysis results from the laboratory, a Mineral Valuation Certificate of the entire mineral export consignment is prepared.

Mr. Mulenga says it is on the strength of this valuation certificate that, after the applicant has obtained a mineral royalty clearance certificate from the Zambia Revenue Authority, the Ministry issues a mineral export permit to the applicant.

He said unfortunately, this practice has opened a window of opportunity for some mineral exporters to deliberately submit low-grade samples to the chemistry laboratory.

Mr Mulenga said this has resulted in the undervaluing of mineral exports and consequently, loss of revenue earned by the government through mineral royalty tax payment.

He said the loss of revenue could amount to hundreds of thousands or even millions of dollars per export, depending on the amount of discrepancy in mineral grade between the submitted sample and the consignment being exported.

“In view of the above, the Ministry wishes to put an end to the current arrangement so that Officers from the Ministry will be going to the mine sites and traders’ warehouses to collect the required samples instead of relying on samples submitted by exporters”, he said.

Mr Mulenga has explained that this decision was arrived in order to earn the government a lot of revenue which is currently being lost through some exporters’ submission of low grade samples to the ministry’s chemistry laboratory.

He said was also done to eliminate the inconvenience of requiring clients to travel to Lusaka to submit samples each time they apply for a mineral export permit and to achieve orderliness in the processing of mineral export permit applications as opposed to the randomness currently prevailing.

Mr Mulenga added that the move is meant to verify the location of the mineral samples and their Mine origin.

He said it is the desire of the government that the ministry gains full oversight of the mineral supply and value chain in order to ensure effective monitoring of mineral production and exports.

Mr Mulenga said in order to facilitate the smooth transition from the current scenario to the new one, all exporters are requested to ensure that their applications for export permits are received by the Ministry at least one week before the officers’ sampling visit to each region.

He said the applications should state clearly where the export consignments to be sampled will be located, with the applicants’ physical address and other contact details.

18 COMMENTS

  1. It is as clear as day light “He said unfortunately, this practice has opened a window of opportunity for some mineral exporters to deliberately submit low-grade samples to the chemistry laboratory” akin to asking a man who want to marry to determine the bride price

  2. Aslo Insist on the presence of more patriotic Zambians at the source of mining and packaging.
    How can you have sample rooms and packaging warehouses and yards with only foringners and no black Zambians present ?

    Even if they manage to bribe a few present black Zambians , at least some money is staying in the country.

  3. Nothing is ever done with professionalism in our country. Unfortunately, cadres and thieves have taken over the running of affairs. It will take time for the country to recover.

    Meantime, let’s show them the door in 2021.

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  4. A good sign govt is beginning to understand how unacceptable foreign investors in the Mining sector are to the electorate. They have been rightly villified as thieves doing us out of our GDP. Usually oversight is in place before any activities can begin, but it’s good to see the govt tightening up to ensure we get our just share.

    WHAT WOULD BE GOOD THOUGH, IS IF GOVT INCREASED ALL SHARES IN MINES TO BE A MAJORITY SHAREHOLDER. And the BREAKING UP OF DISGRACEFUL ZCCM-IH. ZCCM is nothing but an agent of Mining conglomerates and work to rob us aided by foreigners.

  5. These are the attributes of a weak state. Where foreigners can just come in and begin to wander around the country and conduct illegal exploration of minerals and the state apparatus is the last to find out. This is despite availability of mobilephones, expensive 4x4s and wifi all courtesy of taxpayers. This is due to too much politics but little policy. Expensive snooping equipment is for capturing private communications of opposition leaders and not for the security of the people. For goodness sake, we’re in peace time and not at war where the efforts of the security services would be stretched.

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  6. For all our minerals we have, GRZ needs to train Zambians to be experts to each.
    We have thousands of graduates roaming the streets.

    Say manganese , train up a few young Zambians in mining and processing of manganese and insist on their employment at mining houses mining manganese. This must be a continuous cycle.

    That is the only way we will break the vice of foringers owning our minerals and reclaim our wealth.

  7. Zambia has so much idyots, does HH know that this how Ministry of mines operates? You can’t have a ministry run by jerabos.
    How will your Belly HH fix?

  8. It wont work with Mulenga as PS. He has failed to advise the politicians correctly as a miner.
    Why go for the route that you even know that it’s coming to effect in July 2020. Let’s first finish the Mwinilunga gold management.
    Can you tell the nation why people from war turned zone be prevalege to mine our gold yet you are a miner yourself and before & after are experts gold miners in Zambia. If truly wanted to add value to Zambia as professional the least you could ve done is to sought help from kansanshi mine on techniques alone.
    Bushe mwe Lesa aba bantu nikwi mwabagumya?

  9. Instead of sitting on their a$$es at the Ministry of mines they should collect the samples themselves…what are all those Jeeps for in the car park.

  10. Nostradamus 

    “….Zambia has so much idyots, does HH know that this how Ministry of mines operates? You can’t have a ministry run by jerabos.
    How will your Belly HH fix?…..”

    Nostra,

    You don’t have to be an expert at everything , but we belive that with leadership based on the rule of law, integrity and morals , everything starts to fall in place.

    With leadership based on rule of law, integrity and morals , you find right people are appointed to the right jobs, you find service delivery works because thugs no longer controll public spaces……you find those who want to protest are a minority and can protest because the majority of citizens are working…

  11. Progressive step, GRZ. But those officers will be susceptible to bribes. It’s a good foundation this PF GRZ is setting up. We must all support it and advise GRZ where we can.

  12. Increase gvt shares in the mines. If inspectors are sent to the mines, they are bound to be bribed and compromised. Benchmark with botswana were mine ownership is on a 50/50 basis with the SA giant Debeers. The current arrangement is way too porous to be of any value to the country. Investors have exploited the loopholes to the fullest.

  13. More than 50 years of independence we are still talking about these basic things. When people say Africa is dull we refuse flatly. Right now the Turkish in the block industry make the size they want and No body from ZBS cares the standard 6″ block is 15 cm x 20 cm x 40 cm but some of these guys adjust their machines to as low as 14 x13 x37 and unsuspecting Zambians are busy buying with ought knowledge some out of pure ignorance. Please ZBS try and take turns and these factories and take samples of 4″ 6″,8″ if you don’t have the standards for these items get international standards and use them and let these guys follow your standards.

  14. @Vote him out you are a tribalist. Unless it is your tribe in that office then its okay they wont be stealing ? If you go to mukobeko or any other prison you will find that all tribes in zambia among inmates are there.How old were you when the deadly criminal ,ROY MUDENDA escaped from mukobeko maximum prison in the 70’s.Was he Bemba.leave the Bembas alone you imbecile . That’s why it will be difficult for you guys to rule because of that tribal blood instinct in your oval heads.Through your hate careless talk you are just narrowing the chances of your man to rule zambia. Mark my words your tribalism is the one that had been costing HH not to get to state House

  15. They will just call the people going to collect the samples for lunch. Nanga mu Zambian ali na vuto bati? Ka bisiketi tyala wanyala.

  16. corruption scandals: 48 houses; social security cash; luxury presidential jet; ambulances; fire trucks; mukula trees; ndola-lusaka rd; malawi maizegate; fuelgate; swaziland landgate; zesco loans; illegal gold mining; massive debt corruption scandals: 48 houses; social security cash; luxury presidential jet; ambulances; fire trucks; mukula trees; ndola-lusaka rd; malawi maizegate; fuelgate; swaziland landgate; zesco loans; illegal gold mining; massive debt

    Barnaby, remember me mate when you came here to do your short postgraduate studies we used to chat about helping the country? But what I see ia is a guy who is busy helping enrich themselves at the expense of the country. I have been following your every move as PS from Lands and now Mines and your track records isn’t impressive.

    This new process, what are the checks and balances do you have to prevent bribery and corruption? How inefficient would this slow down the exports? Why not just introduce a fixed flat rate or % regardless of the grade/quality? Better still a % of the revenue or you have no means of knowing the revenue? Anyway you will have to have confidence and trust in your people.

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