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“The kind of company Zambia wants is
one with a human face. We have had many
investors but much of the population is still
impoverished, so the tax regime didn’t work
in the past.
“We ask that when you come to invest, you
respect the laws and have a win-win strategy.
Pay the correct taxes, employ and pay peo-
ple well, use local contractors. We don’t want
greedy investors, but one who wants the peo-
ple to benefit.”
Without transparency and measurable
benefits, copper miners in Zambia could face
similar problems to elsewhere.
“We don’t want a situation like they have
in Peru, where communities are protesting
at the mine gate,” Kabuswe said. “If you take
care of EGS, that won’t happen and I’ll give
the miners all the support they need because
Sudanese Minister for Minerals Mohamed Basher Abdalla Mennawi Abunammu I was elected to make an environment that
will allow citizens to flourish.”
years but this is changing,” he said. “Su- and attract new investment. The investment drought has also left Zam-
dan is open to international investment and Instead of dealing only in platitudes the bia with a sparse development pipeline. Ka-
ready to receive people willing to operate in new Government – elected in August 2021 buswe said his Government had set a target
the country.” – has set about cementing its approach in for reinvigorating exploration in the country.
legislation. Hichilema’s 2022 budget unveiled “Exploration is to become extremely im-
What the Australian miners say: We’re
very hopeful Perseus can be success- a revision to the Zambian tax regime, elimi- portant,” he said. “It is expensive but if you
ful because it will open up opportunity. nating the double-taxation policy in favour want to make money you have to spend
Geologically it is incredibly well-endowed, of allowing royalties to be deducted against money and we have set ourselves on a
we’ve been there before and we like it. You corporation tax. path for a robust programme of exploration,
need the balance sheet to go there though. “When you’re in opposition, you can see including mapping the entire country. Early
that certain things are not working so once next year we will start the implementation
Rankings: Sudan N elected you have an immediate idea of what programme.”
to focus on. We saw the problem with the roy-
alty rate and so decided to align it with inter-
Transparency International Corruption Index: World Bank Ease of doing business (2020): Fraser Institute Investment Attractive Index: Paydirt.
164
171
national practice,” Zambia Minister for Mines
and Mineral Development Paul Kabuswe told
A
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190
First Quantum Minerals Ltd, owner of the
Kansanshi copper operation and Zambia’s
largest corporate taxpayer, has welcomed
the new structure.
“It is a strong, bold budget that embraces
the urgent needs of the people of Zambia –
particularly in terms of education and health
– while balancing the long-term needs of
industry to ensure the economy strength-
ens and is sustainable for the benefit of all,”
the company’s Zambia government rela-
tions manager Dr Godwin Beene said. “This
Zambia Budget puts Zambia back on the global stage
as a respected and competitive player in the
Zambia has not fallen quite as far as South mining sector.”
Africa in the international mining stakes – it Zambia’s dwindling tax base was blamed
still remains one of the world’s largest copper in part on a lack of transparency and disclo-
producers – but its Government is acutely sure from major miners. Kabuswe said the
aware that two decades of fluctuating poli- Government expected international miners
cies has left international miners reluctant to to meet their obligations under the new re-
invest there. gime.
Investment in Zambia shrunk last decade “I believe the taxation change will trigger
as successive governments attempted to investment and also make investors truthful,
increase the revenue take from a copper in- eliminating things like underreporting and
dustry suffering from underinvestment. Dur- transfer pricing,” he said. “We need more
ing his campaign, newly elected President transparency from investors as well, local
Hakainde Hichilema pledged to alter course people must benefit from the sector. Zambian Minister for Mines and Mineral
Development Paul Kabuswe

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