19th September, 2014-The inaugural Chamber of Mines of Zambia Corporate Golf Tournament slated for Friday, 26th September, 2014 at Nkana Golf Club in Kitwe, has been boosted by coming on board of Zamtel as Platinum Sponsor. Zamtel has injected fifty thousand Kwacha (K50, 000.00), into the tournament which has also seen Mopani Copper Mines and Atlas Copco sponsoring Silver at fifteen thousand Kwacha (K15, 000. 00) per team of four players.
Out of the targeted 30 teams, a total of 21 teams have so far confirmed participation at K5,000.00 each.
The President of Chamber of Mines, Mr Jackson Sikamo has expressed gratitude to all the sponsors with a special thank you to Zamtel for being a reliable partner for all occasions.
“to many people, the involvement of the mining industry in sport may not in any way be new, because for a long time sports development, of all sorts and at all levels, in Zambia, was anchored in the initiatives driven by the mining industry and to date, our members continue to play a key role in supporting sporting activities. But then, I am sure many do agree with me, that to the Chamber, this golf tournament is genuinely a novel and exciting concept because it is the first sports tournament of its kind that the Chamber is hosting or can be identified with directly,”Mr. Sikamo said.
On the same day, after the Golf Tournament, the Chamber is launching its new logo and embracing a new mission statement, “Advancing the interests of our members, local communities, the country and all stakeholders whilst promoting sustainable and responsible mining” which we believe underscores our resolve to reposition the Chamber to enable it exercise its rightful role effectively, as a partner in development and a vehicle for positive engagement among stakeholders, particularly on issues affecting the mining industry.
Mr Sikamo assured that this transformation will further reassure stakeholders and our social partners of the relevance of the chamber to the national development agenda, to leverage successes recorded in the mining industry as a spring board for economic fortification, through diversification of our economy.
Tournament organizer, Rodwell Chawatama says companies still have up to next week Tuesday to enter teams and is hopeful that the 30 team target will be exceeded.
CHAMBER OF MINES OF ZAMBIA
The Chamber of Mines Council for First Aid (CMZCFA) held its 9th Inter-Company Competition, under the theme, “EVERY SECOND COUNTS, KNOW FIRST AID,” on Saturday 16th August 2014,at Chambishi Stadium.The CMZCFA is responsible for the supervision and coordination of First Aid activities in the mining industry; to ensure that members adhere to prescribed standards and have adequate requisite First Aid infrastructure and facilities.Eighteen (18) teams participated, including three (3) from Contractors, i.e. JCHX sent two (2) teams from its operations at Konkola and Chambishi Mine sites, and Red Path Mining sent one team. The event was graced by the Director of Mines Safety Department, Mr. Gideon Ndalama, on behalf of the Permanent Secretary in the Ministry of Mines, Energy and Water Development, and the Deputy Mayor of Kalulushi District. The area Member of Parliament, Honourable Rainford Mbulu, the Deputy Minister of Labour and Social Security, attended the event.
Also in attendance were representatives of various mining companies and business partners, while on the sidelines some companies in the occupational health business exhibited their products and promotional materials.The Competition was won by Mopani Copper Mines – Mufulira Concentrator Team. Chambishi Metals Plc came second, while Lubambe Mines Plc took third position.The Chamber wishes to heartily congratulate the wining team, all participating companies, business partners and members of the public,particularly Chambishiresidents, who came to watch the drills and support the teams.
ZAMBIA REVENUE AUTHORITY, VAT RULE NUMBER 18(1(b))SHOULD BE AMENDED AND ZRA HAS AN OBLIGATION TO PAY THE OUTSTANDING VAT REFUNDS
WE HAVE BEEN SURPRISED BY SOME MEDIA REPORTS THAT APPEAR TO INDICATE THAT THE CHAMBER OF MINES (CMZ) HAS REACHED AN AGREEMENT WITH THE ZRA TO RESOLVE A CONTENTIOUS ISSUE RELATING TO THE NON-PAYMENT OF INPUT VAT TO EXPORTERS BY THE ZRA.
IN THE REPORT ASPERSIONS HAVE BEEN CAST THAT THE CHAMBER OF MINES PROPOSED TO MAINTAIN RULE 18 IN ITS CURRENT FORM AS IT IS MEANT TO STRENGTHEN THE VAT SYSTEM.
IT IS INCORRECT TO CHARACTERIZE THE ISSUE OF VAT REFUNDS AS AN ISSUE FOR THE MINES ALONE. ZRA HAS BEEN WITHHOLDING REFUNDS FOR ALL EXPORTERS, AS EVIDENCED BY A LETTER FROM THE ZAMBIA CHAMBER OF COMMERCE AND INDUSTRY (ZACCI) TO THE MINISTER OF FINANCE. THIS ISSUE THEREFORE CONCERNS THE ENTIRE ECONOMY.
THE CHAMBER RECOGNIZES THAT A NUMBER OF OTHER IMPORTANT SECTORS SUCH AS AGRICULTURE AND MANUFACTURING HAVE BEEN ADVERSELY AFFECTED BY THE CURRENT REQUIREMENTS BY ZRA UNDER RULE 18(1)(B).THE CHAMBER THEREFORE REGRETS THE CYNICAL AND GROSS MISREPRESENTATION BEING PERPETUATED THAT THE ISSUE OF VAT REFUNDS ONLY APPLIES TO THE MINING INDUSTRY.
WE WISH TO STATE THE FOLLOWING;
RULE 18 HAS BEEN IN EFFECT SINCE 1997. BUT THIS RULE HAS NEVER BEEN FULLY ENFORCED DUE TO THE IMPRACTICALITIES OF DOING SO. HOWEVER IN 2013, THE ZRA BEGAN TO ENFORCE THIS RULE CREATING DIFFICULTIES FOR EXPORTERS TO RECLAIM THEIR INPUT VAT.
THE CHAMBER HAD PROPOSED TO THE ZAMBIA REVENUE AUTHORITY THAT THE REQUIREMENT THAT EXPORTERS OF GOODS AND SERVICES SHOULD SUBMIT DOCUMENTS FROM IMPORTING COUNTRIES BE AMENDED AS WE HOLD IT THAT ZRA SHIPPING INSPECTION AND DOCUMENTS ARE SUFFICIENT PROOF TO DEMONSTRATE THAT AN EXPORT OF GOODS AND SERVICES HAS TAKEN PLACE.
IN PARTICULAR, WE ARE CONCERNED THAT DOCUMENTS GENERATED BY THE ZAMBIA REVENUE AUTHORITY ARE DEEMED AS INSUFFICIENT OR INADEQUATE TO DEMONSTRATE PROOF OF EXPORT.
ALTHOUGH ZRA EXPRESSED CONCERN THAT SOME MEMBERS OF THE CHAMBER HAVE TAKEN ZRA TO COURT AND COULD NOT THEREFORE DEAL WITH THE TAX REFUNDS SO FAR OWED, THE CHAMBER HELD THAT THE MATTERS ARE SEPARATE AND SHOULD BE DEALT WITH ACCORDINGLY. THE CASES IN COURT RELATE TO RULE 18 WHICH WOULD AUTOMATICALLY BE RESOLVED ONCE THE NECESSARY AMENDMENT TO THE RULE IS ENACTED.
IT IS IMPORTANT TO NOTE THAT WE HAVE BEEN MAKING THESE SUBMISSIONS TO ALL RELEVANT AUTHORITIES.
ZERO RATING OF EXPORTS IS NOT A TAX INCENTIVE AND IS APPLICABLE ACROSS MANY COUNTRIES. IT IS DESIGNED TO PROMOTE THE GROWTH OF EXPORT EARNINGS THROUGH COMPETITIVEPRICING IN THE INTERNATIONAL MARKET.
WE WISH TO STATE THAT ZRA WITHHOLDING TAX REFUNDS WHICH EXPORTERS ARE LEGALLY ENTITLED TO, WILL RENDER THEIR PRODUCTS UNCOMPETITIVE.
ON 23RD OCTOBER 2013, WE SUBMITTED TO THE PARLIAMENTARY EXPANDED COMMITTEE ON ESTIMATES, AMONG OTHER THINGS THAT RULE 18(1) (B), BE AMENDED. THE REQUIREMENT THAT THE EXPORTER PRODUCES DOCUMENTS FROM THE IMPORTING COUNTRY WAS DIFFICULT TO IMPLEMENT AND COMPLY TO.
ON 4TH FEBRUARY 2014, WE MADE ANOTHER SUBMISSION ON THE EFFECTS OF WITHHOLDING THE REFUND OF VALUE ADDED TAX BY ZAMBIA REVENUE AUTHORITY ON METAL EXPORTS BY MINING COMPANIES TO THE THEN ACTING SECRETARY TO THE TREASURY, MR FELIX NKULUKUSA AT THE MINISTRY OF FINANCE WERE WE INDICATED THE IMPLICATIONS AS FOLLOWS:
IT IS A WELL-KNOWN FACT THAT COPPER EXPORTS FOLLOW A THOROUGH DOCUMENTED PROCEDURE WHICH IS VERIFIED AT THE ZAMBIAN PORT OF EXIT, THROUGH THE ZRA’S ASYCUDA SYSTEM. WE HOLD THAT THE DOCUMENTS PRODUCED BY THE ZRA TO THE EXPORTER ARE SUFFICIENT AND VALID.
WE ALSO ARGUED THAT THE REGULATORY BURDEN ZRA WAS GIVING ITSELF WOULD IMPEDE THE SMOOTH FACILITATION OF TRADE AND EFFICIENT HANDLING OF TRANSACTIONS.
IN ADDITION, WE HAVE, LIKE EVERY OTHER SECTOR, ON 31ST JULY 2014, MADE PROPOSALS FOR AN AMENDMENT TO RULE 18(1) (b), AS PART OF OUR SUBMISSION ON THE MINING SECTOR NATIONAL BUDGET PROPOSALS FOR 2015 AND ALSO THE 2015-2017 MEDIUM EXPENDITURE FRAMEWORK.
The Chamber of Mines of Zambia will host a Health, Safety and Environment Conference on 10th and 11th July, 2014.
This event is supported by various organisations.
Vedanta Resources Plc is gearing up to spend $280 million at its Konkola Copper Mines (KCM) unit in Zambia, a move that will increase production output by more than a third by 2017.
“We have reinvested all of our earnings back into the company. This has supported the creation of 5 000 new construction jobs and in the meantime, salaries at KCM have more than doubled in real terms,” said Vedanta CEO Tom Albanese.
The Konkola mine has made $2.3 billion of capital investments in the past nine years while paying $73 million in dividends. The flagship project provides access to one of the largest high-grade ore-bodies in the world.
The company, which is owned by Indian billionaire Anil Agarwal, also agreed to pay $111 million in debt settlement at the Konkola site, as well as provie a $400 million bank guarantee.
The $280 million investment by Vedanta comes as a bit of a shock. The company and Zambia, Africa’s second-largest copper producer, have a history of bad blood. The situation worsened last month when Agarwal was caught on camera discussing the low price he paid for Konkola and the profit it makes.
Zambia, which once revoked ex-Konkola CEO kishore Kumar’s work permit, is reportedly in the process of revising its mining laws, which could lead to significant future impact on the mining company.
Story by Mining Global.
VEDANTA is in Zambia for the long haul, says company CEO Tom Albanese.
Executives from First Quantum Minerals and Konkola Copper Mines (more…)
Zambia, Africa’s second-biggest copper producer, wants to review mining taxes.
According to finance minister Alexander Chikwanda the move is to help boost government revenue after “inadequate” receipts from the sector last year.
It is only fit and proper that the country gets optimal revenue from its depleting resources
Mining taxes contributed 18.8 percent to government revenue in 2013, Chikwanda told parliament late on Tuesday.
“The contribution of the mining sector is admittedly inadequate”.
“It is only fit and proper that the country gets optimal revenue from its depleting resources. There will be an appropriate and opportune time for parliament to review the existing legislation,” he said.
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