Mining firms told to double up efforts
Published On June 14, 2015 » 1322 Views» By Administrator Times » Business, Stories
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YalumaBy JUDITH NAMUTOWE –

MINES, Energy and Water Development Minister Christopher Yaluma says there is need for mining companies to double up efforts and increase production if the country is to exceed last year’s over 700,000 tonnes target.
Mr Yaluma told journalists in Lusaka that he wondered whether Zambia would beat last year’s copper production in the wake of the controversy that surrounded the mining industry as a result of mineral royalty taxes.
He explained that most the mining companies did not know what would happen as regard their investment, while some had already started packing up, trying to retrench  not knowing what was going to come on.
“I wonder whether we will beat last year’s copper production because we  have  a  bit of  a question mark there. Remember starting from January this year, most of the mines did not know what was happening with regard to mineral royalty taxes.
“So, am saying we might not beat last year’s production because most of the mines had slowed down on mining operations. If we will do it, we will be doubling up efforts which will come up from here going forward,” Mr Yaluma said.
Mr Yaluma, however, noted the good efforts recorded in the last quarter of the year and that the country could do better than that.
He said it was important that mining companies increased production for fear that once production goes down, mineral royalties and other taxes would reduce further.
“But again we must ensure that we report the right figures on production. We need to make sure we get the right figures of what is being mined. We expect the mining companies to increase production because we have now addressed the hindrances that affected operations, “he said.
And Mr Yaluma said Government had made progress in exploration of oil and gas, saying that they had moved into the second phase of feedback, in which people were being evaluated and meeting the target.
He said Government may revoke licenses of some companies failing to meet the laid down rules.
Mr Yaluma said Government would soon be meeting to see whose licenses would be withdrawn and taken to other blocs.
Government gave out nine licenses to five companies, meaning some had two or three licenses.
Mr Yaluma further said that Government was in a hurry to bring on board the 300 megawatts Maamba Collieries power station which has been completed.
“All is in place and we are moving in to commission Maamba Collieries next month. We have 300 mw being added to the grid and whatever contribution this will make deficit will boost that deficit which is foreseen,” he said.
Zambia’s installed capacity is about 2200 mw which the Government is trying to grow to over 3000 mw in the next three years.

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