29 April 2011
MOPANI Copper Mines (MCM) chief executive officer Emmanuel Mutati has said windfall tax could have stifled growth of the mining industry had the Government not scrapped it off.
And the Government has said it is concerned about rampant copper thefts mining companies have experienced in recent past.
Mr Mutati said people criticising the Government for abolishing windfall tax were doing so out of ignorance.
He said this on Wednesday in Mufulira when Mines and Minerals Development Minister Maxwell Mwale toured the mine to familiarise himself with operations.
“I must say the Government did well to abolish the windfall tax because it was a killer to the industry. I must commend the Government for taking such a good decision. Some people just talk and criticize the Government but they do not know that the windfall tax was a killer.
“At MCM, we are eager to share our profits with the community, but it is the way the whole thing is done.
We have our own corporate social responsibility programme and we engage in various community development programmes,” Mr Mutati said.
And Mr Mwale said there was need to safeguard the wealth being created for the benefit of Zambia.
He said the mining sector was growing in various parts of Zambia, and was a clear indication that jobs would be created even in rural areas where mining companies were opening up.
He, however, expressed worry at the increased thefts of copper which some mining companies were experiencing.
The minister made the remarks at Chambishi Copper Smelter during a conducted tour of the mining firm where he was showed 30 pieces of copper blisters recovered a month ago in Kitwe by the anti-copper theft squad of the Zambia Police Service.
He praised the police on the Copperbelt for working hard to tackle copper thefts.
And Mr Mwale said when he met with union officials that President Rupiah Banda was grateful to them for being supportive during the critical time when copper prices were low at the world market.
“I thought during my visit here, I should meet you to bring the message of thank you from President Banda for your support, understanding and good leadership you provided at the height of the global economic recession.
Let us continue with the same spirit,” Mr Mwale said.
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