By KENNEDY MUPESENI
THE extractive industry’s contribution to the Treasury increased to K9.95 billion in 2014 from K8.21 billion the previous year in 2013.
This is according to the seventh Extractive Industries Transparency Initiative (EITI) report launched in Kitwe, on the Copperbelt Province of Zambia, at the weekend.
Out of the total amount, copper and cobalt producers contributed K8.10 billion representing 92.58 per cent with cement producers adding K460 million representing 5.31 per cent while the other extractive companies poured in K180 million at 2.11 per cent to the national Treasury.
In the stated period, Kansanshi Mines contributed 32.96 followed by Mopani Copper Mines (MCM) at 11.51, First Quantum Minerals (FQM) 9.70, Konkola Copper Mines (KCM) contributed 8.37, with Kalumbila Mine contributing 7.58 per cent out of the five largest contributors.
It further stated that 10 mining companies received a total of K1, 811,277,497 from the Zambia Revenue Authority (ZRA) as Value Added Tax (VAT) refunds.
Kansanshi received the largest share at K857, 005,562 followed by KCM at K755, 388,780 while Kalumbila and Lubambe Copper Mine got K77, 029,500 and K54, 163,310 respectively.
In his presentation, EITI communication officer Ian Mwiinga said the think-tank was impressed by the improvement in company’s response during data collection.
“Mining and other extractive companies are now seeing the value of being transparent, we recorded 95 per cent in terms of responses which is encouraging,” he said.
He said Maamba Collieries remained the sole producer of coal in the country producing 159,151 tonnes of coal with gold production reducing to 4,807 kilogrammes (Kg) in 2014 from 4,934 Kg in 2013.
The launch attracted representation from a cross-section of the Copperbelt community representing the civil society, labour unions, academia as well as Government.
Mine Workers Union of Zambia (MUZ) assistant director, research and development Yewa Kumwenda described the latest EITI report as progressive.
“This report is progressive because it has touched on a number of issues which will increase transparency in the extractive industry,” Mr Kumwenda said.