Zambians in general have little to show on benefits from the mining industry which in most cases have resorted to all manner of cheating to avoid paying taxes.
Cases abound of mining companies which were recently caught cheating by under declaring production figures in a bid to pay less mineral royalty tax.
In other instances, under declarations of production figures have been the order of the day. Now that the mineral royalty will no longer be based on production but profits, many mining experts have cautioned government to be alert.
Indeed government needs to be vigilant in guarding Zambia’s minerals to ensure that local people benefit from trickle down investments.
This is exactly what has riled the Evangelical Youth Alliance (EYA) who plan to stage a public protest against Arc Minerals for allegedly failing to invest in Zambia the money that it makes on the London Stock Exchange.
The bone of contention stems from Arc Minerals involvement with three mining firms in which it has majority shares
But while these mining entities are not operational, Arc Minerals, which is registered on the London Stock Exchange has been raising funds, more or less as a bait.
These funds unfortunately are not ploughed back to the mining companies in Zambia but are channeled elsewhere.
This is what has riled the EYA and is calling on the British government to explain why it has allowed Arc Minerals to behave in such a manner.
EYA Executive Director Reverend Moses Lungu said they have petitioned the British government to intervene but no avail and he has given a similar report to the Zambian government through the minister of Mines.
According to Rev Lungu. Arc Minerals is denying Zambians the mulch needed capital investment in the mining sector.
The poor villagers who host these mines have no idea that they are sitting on mineral resources over which speculators are reaping millions .
The planned protest by EYA should be looked at as a cry for help from Zambians for the government to take a keen interest to what is happening among mining licence holders.
Government should therefore ensure that registered mining companies have visible operations to show that indeed employment opportunities have been created as well as the general social benefits that go with such operations.
For instance, most mining companies have taken up community social responsibility on a serious scale of building infrastructures such as schools and hospitals.
For all the profit that companies get by mining in Zambia, it is important that Zambians benefit too.
Rev Lungu’s mission may be focusing on one entity, but really, this applies to the whole mining sector.
Not long, a mining expert suggested an audit of the mining sector and their activities would be needed in order to ascertain production figures.
The mining sector remains Zambia’s major foreign exchange earner and it is important that maximum befit is derived from this for the benefit of Zambians, especially those in rural parts where the minerals are mined.
This, we believe, is what Rev Lungu’s protest is all about.
Author
