Renowned Economist Dr. Lubinda Haabazoka says mines in Zambia should stop holding the government at ransom.

Dr. Haabazoka, who is also Economic Association of Zambia President, also says it is high time the mines in Zambia came on board to help government raise resources.

He says mines should find a way of posting profits like their counterparts in Chile further stating that mining in Zambia is easier than in Chile.

“How can you pay mineral royalty of 3.5% and then fail to declare corporate income tax despite the fact that you receive US$700 million in VAT refunds, US$240 million in electricity tariffs, US$60 million in fuel subsidies?” he questions.

Dr. Haabazoka says government buys power from Maamba Coal Plant at 13 cents then sells to the mines at 6 cents when households and other companies pay 9 cents.

He says it is a pity that every time government moves in to correct the wrong, the mines start retrenching employees.

He laments that instead of employees siding with government, they side with mines therefore promoting the same problems.

“I understand that mine tax policy should be consistent. But how do we promote consistency of nonpayment of corporate income tax? What the mines should understand is that there are other investors watching on the terraces, he emphasized.

He says this includes the option of nationalizing non-profit posting mines.

“A conventional car now uses about 12kgs of copper. An electric car uses about 60 kgs of copper cables. By 2030, the European Union will move to 100% electric cars! Other developed nations are also moving in that direction. So copper is the past, the present and the future, he said