ZEITI lifts lid on mining revenues

By BUUMBA CHIMBULU

THE Zambia Extractive Industries Transparency Initiative (ZEITI) has expanded public access to mining revenue information, including taxes, mineral royalties and payments made to local authorities, in a move aimed at strengthening transparency in the extractive sector.

ZEITI National Coordinator Ian Mwiinga said mineral royalties account for a significant share of the mining revenue captured in the initiative’s reports, with most tax information obtained from the Zambia Revenue Authority (ZRA).

Speaking on the Ministry of Mines and Minerals Development podcast, Mr Mwiinga said ZEITI also gathers data from institutions such as ZCCM-IH, which receives dividends, price participation fees and mineral royalties under agreements with mining companies.

He said the initiative tracks and publishes payments made to Government as well as revenues retained by local authorities, including annual business levies and property rates paid by mining firms operating within their jurisdictions.

“While ZEITI has traditionally published the information through annual reports, it has now enhanced transparency by making the data available continuously through its online portal,” Mr Mwiinga said.

He said the portal provided information on taxes and other revenues generated by the mining sector, alongside data on electricity supplied by ZESCO.

Mr Mwiinga said ZEITI is also developing a database on water use in the mining industry, including information on the intensity of water consumption by mining operations.

He said water management remains a key concern because mining activities require large volumes of water, making it important to monitor how the resource is managed during and after mining operations.

Mr Mwiinga said the initiative also seeks to highlight risks associated with water abstraction and whether water used by mining companies remains safe for other purposes.

He further noted that understanding the economics of mining was essential in assessing the value the country can derive from its mineral resources, as the industry is characterised by high capital costs and profits that fluctuate with global commodity prices.

Mr Mwiinga explained that mineral royalties were generally calculated on gross mineral revenue based on production volumes and prevailing market prices.

He said Zambia operates a sliding-scale mineral royalty regime under which royalty rates rise or fall in line with changes in mineral prices.

End//