. Musukwa

By MOFFAT CHAZINGWA –
GOVERNMENT has urged Barrick Gold Corporation against using the mineral royalty tax as an excuse for its plans to suspend operations at Lumwana Mine.
Mines, Energy and Water Development Deputy Minister Richard Musukwa said Government had serious doubts over Barrick-Gold’s sincerity on the new mineral royalty taxation.
Mr Musukwa said Government was finding it strange that even before they could demonstrate failure to pay, Barrick Gold rushed to the decision of suspending operations.
The deputy minister, who was commenting on the growing uncertainty surrounding Lumwana Mine following Barrick Gold’s threats to suspend operations, said the decision by the investor was misplaced and lacked good faith.
“The decision by Barrick Gold to suspend operations is misplaced and not in good faith because they should first of all give us the impact of the tax.
He said Government was ready to listen to Barrick Luwmana’s argument provided it was furnished with authenticated data showing the impact on operations in terms of tax measures.
Mr Musukuwa said rushing to suspending operations should be the last thing for Barrick Gold if the investor had heavily invested in the mine.
“Government is not going to accept any blackmail and I want to assure Lumwana miners that Government will ensure that their interests are safeguarded,” Mr Musukwa said.
He said the current mining taxation structure was aimed at ensuring that maximum benefits were derived from the country’s mineral wealth in order for Government to continue with infrastructure development.