ZIMEC roundup by MAIMBOLWA MULIKELELA and KENNEDY MPESENI –

MOPANI Copper Mines has urged the Government to sort out the outstanding value added tax (VAT) refunds amounting to about US$300 million.
The Government has been withholding the VAT payments from the mining companies and other exporters because they have not produced import certificates from destination countries- a step it says is needed for greater transparency.
In February this year, the Government relaxed the rules requiring exporters to produce documents from destination countries to claim tax refunds, a move aimed at resolving a row that threatens investment in the country.
Mopani Copper Mines Chief Executive Officer Johan Jansen said it was critical that the Government resolve the outstanding VAT issues because they have implications on the future investment of the company.
Mr Jansen said the company was owed in region of $300 million and that the money would be used to build a new concentrator.
He said this at the just ended Fifth Zambia International Mining and Energy Conference and Exhibition in Lusaka whose theme was Zambia’s mining and energy economy –next 50 years.
“We are owed in the region of $300 million and this is the money we are going to use to build a concentrator until I get the VAT refund that is for Mopani this concentrator will be on hold.
“Government needs to sort out the outstanding VAT issues because it has serious implication on the Mopani vision,” he said.
Mr Jansen said the company’s vision was to become a proudly Zambian company which delivers superior value to the shareholders, people and country.
He said the mining company had invested $500 million to put up a smelter and $75 million for the refinery and that it is committed to the development of the mine.
The company would invest $1.2 billion from 2014 to 2018 to put up mining infrastructure at the mine.
“Mining investments are long term and are only made after careful assessment of financial and technical viability, having weighed potential rewards against possible risks,” he said.
Mr Jansen said it was important to note that the company had opened the Mopani Central Training Centre in January 2014.
He said more than $15 million had been invested to date in constructing and equipping the engineering and mining training centres.
The total facility cost will be $21 million on completion in 2016.
“This is a joint venture with Barloworld for specialised mobile equipment training and we have enrolled 234 trainees,” Mr Jansen said.