By JUDITH NAMUTOWE –
THE European Union (EU) has given Zambia a grant of 4.7 million Euros for monitoring of mineral production in the mining sector under the Ministry of Mines, Energy and Water Development (MMEWD).
The funding is being provided under the 10th European Development Fund (EDF) Support Programme to Public Finance Management, Accountability and Statistics in Zambia.
The programme worth 13 million Euros is funded by EU and is aimed at strengthening economic governance in Zambia.
EU Head of Operations Arend Biesebroek said this during the official launch of the Mineral Production Monitoring Support Project in Lusaka at the weekend.
Mr Biesebroek said the project was designed to strengthen the ability of the Ministry of Mines to effectively monitor mining activities and mineral production in the country and share the information with other relevant Government agencies.
He said the project would set up a mineral production data capture system, procure sampling and analytical equipment for the Geological Survey Department (GDS) and Regional Mining Bureaus (RMB) and assist the ministry and Zambia Revenue Authority (ZRA) with integration of production data for appropriate calculation of royalty.
Mr Biesebroek said objective of the Mineral Production Monitoring Support to the ministry to be implemented over a three year-period, was meant to enhance transparency in the management of mineral resources, by helping to determine accurate levels of mineral production.
“Achieving transparency and accountability in the mining sector requires more capacity from the Government to control mining activities, to improve data collection, reporting and analysis and to provide empirical evidence of the contribution of the sector to the economy,” Mr Biesebroek said.
Secretary to the Treasury Fredson Yamba noted that more efficient and effective monitoring of the performance of the mining industry would significantly improve tax income from the sector and the quality of data to enhance transparency.
Mr Yamba further said the Government’s policy decisions in respect of taxation of the mining industry would be based on objective and evidence-based analysis of data, which he said would ensure fairness and avoid harming the industry as a result of over taxation.
“The focus of this programme will be capacity building and training, and the procurement of relevant equipment for the GSD and RMB issues relating to tax systems and mine audits will still be developed under the Mineral Value Chain (MVC) project,” he said.
And Mines Minister Christopher Yaluma said growth of Zambia’s economy has continued to fluctuate with growth in the mining industry an indication that the country had not done much to maximise the exploitation of mineral resources to build the economy.
Mr Yaluma said when he officiated at the launch of the EU funded project that research had shown that it was the governance over mineral resources, rather than their size, that determined the extent to which a country’s people benefit from their exploitation.
“It is, therefore, essential for Government to put in place measures to ensure that exploitation of mineral resources in this country translates into economic development,” Mr Yaluma said.
Mr Yaluma said it was essential for Government to ensure that mining activities throughout the value chain were carefully regulated and monitored as this would not only provide for formation of informed policies but would also create confidence among stakeholders.
He said efficiency and effective monitoring would ensure maximum benefits and Government revenues from the mining industry.
“This is because correct and verified mineral production figures are the basis for collection of mineral royalty and taxes,” he said.