MINES DISMISS ‘FAVOURABLE’ REPORT

By BUUMBA CHIMBULU MINERS have objected to a study by the Centre for Trade Policy and Development (CTPD) suggesting that the Covid-19 impact on mining was minimal owing to the taxes which the country benefitted from the sector. A study by a think-tank has suggested that Covid-19 had a minimal impact on the mining sector between January and June 2020, evidenced by higher collection of some taxes. But Zambia Chamber of Mines (ZCM) has ruled out the report questioning its methodology. CTPD Senior Researcher Extractives, Webby Banda, in launching the study, explained that mineral royalty collection increased by 25 percent last year between January and June. Mr Banda attributed the improvement in revenue collection for the period to change in the efficacy of tax administration, fiscal relief packages given to mining firms and implementation of cost-saving initiative in major mines. Reacting to the study, ZCM Researcher Policy Manager, Yewa Kumwenda, questioned the methodology of the report. Mr Kumwenda argued that the mining industry had adversely been affected by the impact of Covid-19, citing that industry players had difficulties exporting the commodity since the outbreak of the pandemic. “This is a desktop research. You could have visited at least a few big and small mines to get the true impact of the pandemic,” he said. In response, CTPD Executive Director, Isaac Mwaipopo, indicated that the think-tank would take into account the feedback from stakeholders. Mr Mwaipopo explained that CTPD was keen to launch studies which were relevant to stakeholders. “We will take into account the feedback from stakeholders for our work because we want to publish materials which are relevant and which stakeholders can refer to. We want to publish very useful materials,” he said. At the same function, CTPD launched another study on the Covid-19 and its implications on gender, an analytical lens of informal cross border traders and agriculture.