Mar 10 Nov 2009 08:51
Zambians not benefiting from mineral royalty
By Speedwell Mupuchi
Tue 10 Nov. 2009, 04:00 CAT [23 Reads, 0 Comment(s)] Text size Print
PATRIOTIC Front Chingola member of parliament Dr Joseph Katema yesterday said Chingola residents are ready to challenge the government over its failure to share mineral royalty collected from KCM with the local authority.
Dr Katema said Zambians were not benefiting from mining operations in the country.
“Previously, we had development agreements signed by government with mining conglomerates but when we ushered in the Mining and minerals development amendment Act of 2008, it rendered the development agreements null and void, meaning all companies should abide by the new Act. In the Act, there is a provision in section 136 that there will be sharing of mineral royalty; it is collected by government.
A percentage should go to the local council in which extraction of minerals is done,” he explained. ìBut from 2008 to date, Chingola Municipal Council has not received a single ngwee from mineral royalty tax collected from KCM (Konkola Copper Mines) and the people would like that money to come to the local council. We are ready as residents of Chingola to challenge government in the courts of law.”
Dr Katema said although people could not force the government not to collect tax from companies, as that was its mandate, Chingola residents would get an injunction to restrain KCM from paying the royalty tax until the government put up a fair mechanism of sharing the mineral royalty taxes.
“We are ready to take them on in courts locally and even go to International Court of Justice,” he said. ‘Even Solwezi, it is entitled to mineral royalty which First Quantum through Lumwana is paying to government. It is the same with Mufulira, Kalulushi.”
Dr Katema complained that road infrastructure in Chingola was bad and that the city could be brought back to its former status as the cleanest town in the country once mineral royalty taxes were shared with the local authority.
He also expressed worry over the government's failure to monitor mining companies to adhere to environmental standards in their operations.
“We were told two mines have been given licences to start mining uranium in Zambia. Uranium is not like any other mineral like copper.
If we are failing to monitor the mining companies dealing in copper and cobalt, to take them to task over environmental degradation, how are we going to manage when it comes to uranium mining?” he wondered. “Uranium has far reaching consequences. Russia they failed to manage uranium waste in Ukraine.
The effects are being felt right now and they are having problems, that (Russia) is not a developing country. How will we manage when Lumwana starts enriching Uranium?”
Dr Katema further complained that the government had failed to push KCM to pay Chingola residents whose houses had developed cracks as a result of mining activities.
“The mining company, KCM, is adamant saying it's ZCCM's baby. How are we going to handle uranium if we are failing to handle such issues?” asked Dr Katema.