Statutory Instrument (SI), Mining companies give 30% of business to local suppliers


Government has threatened to introduce a Statutory Instrument (SI) to compel mining companies to give 30 percent of their business to local suppliers if they continue to import materials which are locally available.

Mines Minister Richard Musukwa says most mining houses are not giving business to local suppliers but have continued to outsource materials which are available locally.

Speaking at a meeting in Lusaka with Civil Society Organizations involved in the extractive industry, Mr. Musukwa says there is need for the mining companies to ensure they give supplying contracts to local suppliers because this will help improve the country’s economy.

He states that there are provisions in the mining licences that require all mining companies to support local suppliers, thus the need to ensure that they abide by these provisions.

And Mr. Musukwa has urged all mining companies operating in Zambia to close foreign offices saying the country is not benefiting from them in any way especially in this age of computers and technology where they can operate within Zambia thereby creating employment for the local people.

He notes that mining companies have given themselves huge contracts by creating contract offices in foreign countries.

Speaking at the same event, Centre for Trade Policy and Development (CTPD) Executive Director Isaac Mwaipopo says there is need to operationalize the 2013 Mines and Minerals Development policy to ensure there is value addition.

And Water Aid Zambia Country Director, Pamela Chisanga has expressed concern over the continued illegalities happening in the country especially in the Mining sector where Zambians have been displaced by mining activities.