The government says it will address the issue surrounding the operations of Konkola Copper Mine ( KCM ) and Mopani Copper Mine ( MCM) within the quickest possible time. Finance and National Planning Minister Situmbeko Musokotwane says this is because a huge amount of capital is required to resuscitate the two mines.
Speaking at the post-budget symposium in Lusaka, Dr. Musokotwane disclosed that discussions to bring a lasting solution to the matter are already underway adding that the general public will in due course be informed on the way forward.
Government has through Zambia Consolidated Copper Mines Investment Holding ( ZCCM-IH) taken over Mopani Copper Mines and is in the process of identifying an equity partner while KCM is in liquidation.
Meanwhile, the Minister said the government is currently subsidizing fuel to the tune of 21 million United States dollars on a monthly basis. Dr. Musokotwane admitted that government is in dilemma regarding the issue of fuel.
Getting fuel from Indeni is expensive in comparison with purchasing finished oil produce from the Port of Dar es Salaam through the TAZAMA pipeline.
“If we want cheaper fuel, then of course it means that we cannot buy from Indeni but If we want Indeni it means we must accept more expensive fuel, these are the choices we have to make,” he said.
Meanwhile, the government has defended its decision to increase the Pay As You Earn (PAYE) tax threshold to 4, 500 kwacha in the 2022 National Budget, an increment of only 500 kwacha.
Speaking at a post-budget symposium in Lusaka yesterday, Minister of Finance and National Planning Situmbeko Musokotwane explained that the budget was too tight, noting that the demand for areas needing resourcing his high.
The Minister noted that it is for this reason that in the area of education, that the most efficient way to handle the issue, was to make secondary school education free for all scholars.
Dr Musoktwane revealed that even though the tax threshold was increased by only 500 kwacha, implementing the free education policy, will cushion the spending burden of workers.
He said adjusting the tax band beyond the set threshold can only benefit those in formal employment alone at the expense of groupings that do not have formal jobs.
“If we adjust the tax, we are not benefiting them in any way band (those who are not in formal employment). We actually thought that by making education free, we are targeting a bigger group of people to be beneficiaries, a low level civil servant out there who was previously paying school fees for the children, in one go, you have given money to them.” Dr Musokotwane explained.
And Dr Musokotwane said the move by government to stop importing desks in next year’s budget, will create employment.
He disclosed that youths will be trained in craft skills to enable them the expertise to carry out such works.
Dr Musokotwane appealed to banks to soften conditions for youths to acquire loans in order for them to carry out projects in their localities.
“A loan of 10, 15 thousand kwacha can a do a lot to enable a youth to take up a contact to make hundred desks in the constituency, in the ward, this is where the jobs will go,” he said.
Is our economy so small that the only big activity which will create employment is manufacturing of desks? A country cannot function on copper, Maize & now desks alone as the main drivers of the economy. We have a long way to go.
Can we see the whole array of Devolution of Power from top to bottom. What would be the lowest Governance Unit in this set up?
What would be the role of Provinces? Will Governors at the Provinces be Elective, for instance?
Major takeaways from Musokotwane’s address:
1) Do not be surprised as Zambians if Mopan and KCM are given to foreign mining companies. UPND reasoning is that the two mines
require huge amounts of money to resuscitate them which GRZ does not have.
2) No salary increment for public service workers any time soon because of the many teachers and health staff to be employed.
INDENI has not operated for months now. All the diesel we are consuming is being imported either through Beira or Daressalam . Why then is it still expensive? You promised to reduce the price for fuel. to K5/LITRE. Dont start lecturing to us about this INDENI and pipelines etc. We are waiting for that cheaper fuel. Dont take us for granted. We are not kids.
It is already known that Mopani has gone to Anglo- American Cooperation. Do not beat about the bush. They funded you and you have to deliver what u promised them. Bye Bye Mopani.
These guys are crooks listen to what they have started saying , Zambians are not as dull as you think you just presented that budget mostly about consumption, now you are wondering about funds for wealth production where is your reasoning capacity!
This shows how you are doing things upside-down just imagine are you losing track or you are now confused to say the least.
Musokotwane be thoughtful enough to know where you are coming from and where you are going, now you have hit a hard brick wall since the you already announced a budget and hide away the elephant in the room.
Just take back the constituency funds to help with investment into the mines and forget
the head of this problem was at the helm of zpa
so Zambians like anglo Saxon co or someone is thanking such heartless multinational?
Now he is talking about the fuel being subsided heavily what is he thinking about, as much we all know IMF will not allow their money to be used for subsidies on any of the consumption products like fuel and food commodities.
It won’t take long before we hear price increases on essential commodities and the game will start, that is exactly what we are waiting for and as Mopani changes hands to Anglo American more jobs in the mines will be lost, to make more viable for the investor to make profit to take away to other parts of the world and live Zambians suffering .
Where will the employees go, we know it is in the streets and the faint hearted will just die due depression as they can’t bare to face hardships in the offing, it is not a joke we saw it in 1991 .
I’m not any good at economics… but I read through budget and unlike those who rushed to condemn or praise it I decided to take time, and through time I discovered that this budget is like a fisherman going out into a stormy sea and hoping that he makes it to the other side. There are many trappings in it.
We are all guilty for we allowed crooks to sell off our companies which we created using money from our Godgiven copper. By now Zambia would be a hub of industrial activities not only in the region but the entire Africa. Our founding fathers had little academic education but had more wisdom a hundred times than us.
There is a faulty premise to “If it ain’t broke don’t fix it”. The problem we have had with our industrialization is to stagnate anything that seems to be making us cash and then milk the dividends until the costs outstrip the purpose due to obsolete processes and equipment. We need to begin to continuously improve and evolve. That is how you keep costs down long term. You have so many folk who can actually drive this for you fellas. Muzicinja vinangu ivi vintu. Now Indeni is stuck in the 60s or 70s when it was built. Mwa ona ka?
PF caders think grabbing mines simply means it belongs to Zambians……..
They are oblivious to the costs of maintenance…………
Proving that , indeed , there is no equivalent word of
” maintenance ”
In any Zambian local language……
Maintenance is the up keep of machinery and other assets , and carries a cost.
#11 Spaka have you ever worked on the mines?
Ba musokotwane, we already know that you committed to giving our mines to foreigners. Don’t beat about the bush. That’s why they funded your campaigns.
As a country, back to square one. No progress, just more debt and empty rhetoric.
As for Indeni employees who voted enmass for upnd, thinking that the new govt will resucitate the plant and import crude oil stock feed,mwalapila. Mwabaziba lelo ba upnd. No fuel from Indeni.
#13 .. Yes how come he ” knows” about this huge amount just two months in office? Did someone tell him about it or he’s trying scare us into “submission”?
So sad that it’s become “a huge amount of capital” bcoz the PF did a great job making the GDP so small.
Edgar China Lungu gave the mines to a couple of those corrupt PF cadres, who had never even seen a vacuum cleaner – so what chance did they have running a mine? That’s what you get when incompetent amateurs run the government!
#18 The people given to run Mopani are not only very highly educated but also very experienced and very decent. Please don’t insult their intelligence. If you are honest in your comments you should recognize the fact that during their time Mopani made some decent money.
Zambians are competent enough to run the mines, just revisit your budget and get some money required to start the mines running again by Zambians, at this time and more years to come copper mines will continue to be the money spinner like oil had been for the past years as cars and motor engines will be running on copper products.
It is total foolishness to throw away our copper when it has become the money spinner, just to give it away to foreigners.
Zambians wake up and fight for what belongs to you, don’t allow these crooks to take advantage of you and sell your lively hood, wake up this is the time to speak up!
“The quickest possible time”. is the politician’s way of telling us “at our own time” Just be bold enough to give us a date. When youare a Chimbwi no plan it is difficult to give a timescale.
The problem with as Zambians is that we are fo.ols and short sighted, Can pig from West, Europe etc, will say to Us Zambians eg that eating mud with salt makes one healthy believe you me we shall accept that,than the advise from our own…iam sure the finance minister is thinking of selling the mines which is extremely shameful…ba new yawn you can’t develop Zambia by just collecting tax from the mining sector, Botswana they have shares in key gold mining firms…KCM paid off the suppliers and made a profit of 57million dollars so ba new yarn what is your problem!
Ba new yarn you are just taking Zambia backwards!
ZCCM ih has run down ndola lime. How do you expect it to run mopani and kcm. Yes the people appointed have the requisite academic qualifications. But can they bstand up to political interference, nepotism and corruption. Just look at IDC and the questionable deals with Marcopolo tiles. Zccm ih investments in loss making investrust bank. How much profit is Zambia Gold company making? Mining is a very complex business. Technicial qualifications or busines studies qualifications are are not a magic bullet to managing such an enterprise