ZAMBIA TO DEAL WITH ‘CHEATING’ MINING HOUSES

The Zambian government plans to strengthen penal measures against false reporting of mineral production and export information.

Finance Minister, Alexander Chikwanda says monitoring mechanisms and structures will also be strengthened so as to know exactly how much the mines are producing and earning in the sector.

This comes in the backdrop of public concern over how much the mining sector is contributing to national revenue.

Mr Chikwanda has explained that he will soon table for possible enactment of a bill to stiffen punitive measures against erring mining houses.

And the minister has further proposed a 10 % tax on the transfer of a mining right, as well as reducing the mines capital expenditure deduction rate from 100 % to 25 %.

Meanwhile, at least US$ 255 million of the recently accessed US$ 750 million Euro-bond proceeds, will be invested in the electricity sector, whose current generation capacity is in deficit.

Another US$ 430 million of the respective money will be invested in roads and railways, sectors, which the minister hopes will spur economic growth activities.

Mr Chikwanda, has disclosed this when announcing the country’s K 32.2 trillion national budget for 2013.

Among economic targets set out for next year are a 7 % Gross Domestic product growth, a 6 % year-end inflation rate and the creation of 200,000 jobs.