Mines shocker: Some making profit

SOME mining companies are making huge profits but are failing to declare and pay taxes to Government as expected, director of mines in the Ministry of Mines, Energy and Water Development Morens Nswana has charged.

He said Government cannot take action against such erring mining companies that are giving inaccurate information and declarations about their production and profit because of legal and policy complications.

Mr Nswana said in Livingstone recently that although Government was aware of the erring mining firms, it was difficult to take them to task.

“Government is aware of some mining companies that have been making huge profits but fail to declare and pay government as expected. This is because of legal and policy complications,” he said.

Mr. Nswana said the major challenge in managing mines that Government was facing was because it depended on information given to the Ministry of Mines through audited documents from the mining companies.

He said that the ministry was handicapped because there were other components and stakeholders who were involved in the operations of the mines including how revenue was paid to the Government.

Mr Nswana said it was a huge task to ensure that what was happening in the mines was being monitored.

He however maintained that the information that has been tabulated in the Zambia Extractive Industries Transparency Initiative (ZEITI) reports for both 2012 and 2013 was accurate and was verified.

And Livingstone City Council deputy mayor Fred Sikazwe called on the EITI to make information available through annual reports on the payments that mining companies were making to the Government.

Mr. Sikazwe said the EITI reports were very important documents to the people of Zambia because they promoted transparency as they indicated and showed how much the extractive companies have been giving the Government through mineral royalty and other taxe.

He said that by availing reports to the public, the process promoted transparency and accountability in the management of the extractive industry in the country.

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