• Mining is Zambia’s dominant industry and main stay of the economy.
• It accounts for 10 percent of the Gross Domestic Product.
• New dawn government wants to bring sanity to the mining sector.

Minister of Mines and Minerals Development says the mining sector is one of the key drivers to foster economic development as it accounts for 10 percent of Zambia’s Gross Domestic Product (GDP.

In his Ministerial statement to Parlaiment on government’s position and strategy for the mining sector, Paul Kabuswe further said the sector also accounts for over 70 percent of foreign exchange earnings, 30 percent of government revenue, and 8 percent of formal employment.

Mr. Kabuswe stated that if well harnessed, the industry has potential to resolve challenges in other sectors and act as a catalyst economic growth, hence government’s intention to bring sanity to the mining sector.

He said the new regime will not tolerate confusions that had characterized Gold mining, while illegal mining and destruction of the environment in other base metals, industrial and energy minerals will be a thing of the past.
“The new dawn government wants to bring sanity to the mining sector. You will therefore see changes that promote greater transparency. The confusions associated with gold where illegal mining was the order of the day will not be tolerated under the new dawn government,” Mr. Kabuswe said.
Mr. Kabuswe warned that government will not allow illegalities in Manganese mining, smuggling of Emeralds and destruction of the environment by illegal miners.
“In addition, the wanton illegal mining and destruction of the environment in other base metals, industrial and energy minerals will be a thing of the past under the UPND government. Let me sound a warning that the new dawn government of President Hakainde Hichilema will not allow illegality in the sector.”
And Mr. Kabuswe revealed that government has been consulting key stakeholders to review the mining tax policy framework so as to design and develop a fiscal tax regime for the sector to ensure sustained investment in mining and attract local and foreign investment.
He added that the Ministry is enhancing monitoring and oversight mechanisms and technologies to reliably ascertain the volume and content of mining output for taxation purposes.
“In addition, government will capacitate officers managing the Mineral Output Statistical Evaluation System (MOSES), Mining Cadaster Administration System (MCAS) and those deployed at border posts to enhance transparency and accountability of the mineral resources.”
“Government has started the process of consulting stakeholders on modalities to ensure the presence of officers in areas where mining is taking place to enhance monitoring and accountability of the various minerals been exploited,” he stated.