By JAMES KUNDA? –

THE Chamber of Mines of Zambia (CMZ) has cited some policy measures?which adversely affect the mining sector in the country.
Newly-elected CMZ president Jackson Sikamo said the policy measures?had been targeted at the industry with the overall effect being?substantially to increase the cost of operating mining assets in the?country.
“The specific measures being referred to in this brief include:?introduction of export duty on semi-processed copper products;?introduction of import duty on various copper products and Rule 18 in?the Value Added Tax Act under Commissioner General’s Rules requiring?proof of export for VAT zero-rating purposes.
“Others are abolition of capital allowances for mining investment and?the impending roll out of road tolling and its impact on inter-mine?transportation of products for processing,’’ Mr Sikamo said in response?to a Press query.
He said if not urgently addressed, the combined effect of the measures?threatened the viability of the mining sector and made it extremely?vulnerable to collapse in the current volatile commodity cycle.
He, however, said the CMZ welcomed the revocation of Statutory?Instruments (SIs) number 33 of 2012 and 55 of 2013 along with?Government’s willingness to continue consultations with the private?sector regarding the development of a regulatory environment.
Mr Sikamo said it was encouraging that President Michael Sata?acknowledged in his Speech during the recent official opening of?Parliament that mining continued to play a significant role in?Zambia’s economy.
He said there was need to encourage more mineral exploration?activities in areas which have not been fully defined.
Mr Sikamo said yesterday that authorities should continue to grant exploration licences for both local and international investors to tap into minerals like cobalt, manganese and nickel.
“This together with a stable fiscal investment climate will spur increased potential for mining projects to exploit other commodities such as nickel, tin, lead and zinc, uranium, manganese and Industrial minerals.
“Furthermore, as the country makes significant progress in export diversification … all economic players must come together and look at ways of increasing non-traditional exports to make it competitive with the mining industry,” Mr Sikamo said.