Less money expected from Mines

First Quantum Minerals
President Edgar Lungu At Kansanshi mines

The Zambia Extractive Industries Transparency Initiative (ZEITI) says the challenges facing Zambia’s mining sector will have a negative impact on the firm’s financial statutory obligations to government.


ZEITI Head of Secretariat Siforiano Banda says the continued problems in the mining sector such as low copper prices, energy deficit and pending job cuts are likely to reduce the amount of money mining firms will pay to government this year.


Mr Banda says the low copper prices are a major factor in reduced earnings by mining companies which may also impact on statutory obligations.


He added that the happenings at the international market has a huge impact on Zambia adding that over 70 percent of the country’s foreign exchange is earned through export of minerals.


Mr Banda said this in an interview with ZNBC News in Kitwe on the sidelines of a workshop on the Extractive Industries Transparency Initiative Impact assessment.


He has also called for further transparency in the mining sector saying people want to see how the minerals are benefitting the nation.