The Association of Mine Contractors and Suppliers (AMCS) says the first six months of the year has not been favorable for mine contractors and suppliers to conduct business.
Speaking in an interview with Money FM News Association President Augustine Mubanga said this has been attributed to limited business opportunities in the mining industry due to apprehension concerning the introduction of sales tax by government.
Mr Mubanga said most mining firms suspended the procurement of goods and services as they did not know how to manage the transition.
“The second quarter of the year saw the deferment of the implementation of sales tax to July a situation that brought a lot of uncertainty in the mining industry’’, He said
He said the announcement by Konkola Copper Mine (KCM) to close down two mining shafts brought a lot of anxiety in the sector as job and contracts where going to be cut off.
“We are hopeful that in the last six months of the year we will be able to increase the low business opportunities that have begun experienced in the first six months, as most if the issues affect the industry will be dealt with,” He said.
Mr Mubanga says the taking over of Konkola Copper Mine (KCM) by the liquidator has brought hope of increased business to mine contractors and suppliers.
He said once another investor is identified the association will no longer face challenges of late payments as was the case with KCM.
Mr Mubanga has alleged the that the mining firm has until the time of its liquidation been owing mine contractors and suppliers huge sums of money.