2016 revenue from mines dwindles
Published On January 3, 2017 » 1543 Views» By Davies M.M Chanda » Business, Stories
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THE government’s revenue from the mining industry dropped to K9.07 billion in 2015 from K9.94 billion recorded in 2014 due to low copper earnings.
This is according to the latest Zambia Extractive Industries Transparency Initiative (ZEITI) report for 2015.
ZEITI head Siforiano Banda said the reduction in mining revenue of K0.87 billion represents about nine per cent.
The report indicates that the reduction in revenue was attributed to low copper earnings in 2015 which were 31.3 per cent lower than those reported in 2014.
It further states that the average realised copper price in 2015 declined by 23 per cent, largely reflecting the slowdown in global demand for commodities particularly by China.
Mr Banda said in terms of the taxes, the company income tax reduced from K1.55 billion in 2014 to K0.83 billion in 2015.
The mineral royalty tax increased from K1.82 billion in 2014 to K3.63 billion in 2015.
The report shows a reduction in import value added tax (VAT) from K1.99 billion in 2014 to K1.20 billion in 2015.
Pay as you earn (PAYE) increased from K1.43 billion to K1.54 billion.
“In terms of mineral production, copper production increased from 708,259 tonnes in 2014 to 710,860 tonnes in 2015,” Mr Banda said.
Gold production reduced from 5,417 kilogram (kg) in 2014 to 4,241 kg in 2015 In the year under review, Emeralds posted an increase in production from a low of 6,253 kg in 2014 to 36,019 kg in 2015.
Coal production reduced from 159,151 tonnes in 2014 to 103,439 tonnes in 2015.
The report indicated that Zambia was still dependent on mining as its major productive industry.
The contribution of the mining sector to exports reduced from 76 per cent in 2014 to 1.06 per cent in 2015.

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