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Today's editorial in The Post newspaper is entitled, "Sickening irresponsibility on mineral royalty tax". It's tone reflects deepening concern that the Minister of Finance is showing little energy in following through on his commitment to renegotiate existing Development Agreements. The Post seems to have been particularly provoked by recent debates in Parliament and the Minister's cancellation of an interview with the paper on the issue (reported on the front page today).
The editorial notes, "During 2006, preceding the general elections finance minister Ng’andu Magande made several loud, but now worthless public announcements that government was going to revise the mineral royalty tax. However, as we have seen from the 2007 budget proposals, there is little to show for it. Magande must learn to walk the talk."
The Post also discusses the role of the IMF in the negotiations. "We know that the 2006 IMF mission at the invitation of government held meetings with Evans Chibiliti, the Secretary to the Treasury and chair of the technical committee examining development agreements and the fiscal regime for the mining sector. What did Chibiliti do? Did he invite all the stakeholders and existing mining houses with development agreements for a discussion? From what we have gathered, no meaningful discussions have taken place to-date either with the mining houses or stakeholders. Yet we know from reading the IMF recommendations on mineral royalty taxes, which report neither the Ministry of Mines nor Cabinet has seen or discussed, that Magande carelessly accepted the IMF recommendations and proposed those he could get away with under the 2007 budget."
As 'For Whom the Windfalls?' reports, we know that this isn't quite right. Although there haven't been any substantive discussions with individual companies about revising agreements, during the IMF mission, the Ministry of Finance attempted to use the IMF's recommendations to pressure the companies, and did indeed invite representatives of some of the mining companies, led by the Chamber of Mines, to a meeting with Ministry officials and the IMF team. At the meeting the IMF's proposals were discussed. As 'For Whom the Windfalls?' revealed, the companies were annoyed, feeling hi-jacked by the meeting. However by the end of it, they were also confident that they had seen off proposals they could not accept. It was in discussion of these meetings with mine management that the minewatchzambia researchers first heard the argument that there might be a revision of the mineral royalties, but with an exemption for existing contract holders, which is, so far, exactly what has happened. Company executives claimed that they convinced the IMF of this position.
The Post claims that although the Cabinet and Ministry of Mines haven't seen the IMF recommendations, The Post has read a copy itself. Minewatcher will approach The Post for its copy of the recommendations, and will put them on this site if they are forwarded. Anyone else with access should feel free to forward the documents.
The Post claims also asks: "And we have to ask; why have parliamentarians not seen the development agreements? Why is government hiding these agreements from Parliament and therefore the public?" We know that members of the Mine Watch Zambia network have distributed copies of 'For Whom the Windfalls?' to a large number of Parliamentarians, and that they should therefore be aware that some of the Development Agreements are available to them and everyone else on this website. The question seems to me to be: why does Government not lodge copies of all the Development Agreements, and the annual reports from each of the companies to the Ministry of Mines in Parliament for inspection by MPs, and online for inspection by all citizens?
1 comment:
Mrs Jolly with the short memory
url in french
http://www.rfi.fr/francais/actu/articles/009/article_3212.asp
in september 2000
"9.000 fired minors, is nearly one the third of manpower. Such is the first result of privatization, a few months ago, of the company of the mines of copper Zambian, the ZCCM. Subjected to the pressure of the international financial authorities, the government of Lusaka did not have the choice. “If you want rééchelonnement your debt and an international financial assistance, one needs privatiser your mines of copper” explained to the Zambians the World Bank and the IMF during several years. It should be said that these mines with the obsolete equipment made lose money with the finance public. Two million dollars per day according to certain sources. After several years of negotiations and excuses on the two sides, the South-African giant Anglo American, extremely of his presence to the board of directors of the ZCCM, carried the largest piece. Three of the principal mines of the Zambian belt of copper, a Canadian conglomerate taking the control of two other layers. With conditions defying any competition, explain the experts of the ONG Oxfam British which went on several occasions on the spot and for which Anglo American knowingly made trail the negotiations in length, to benefit from the fall of the world levels of copper and to literally put the government of Lusaka at knees. Result, for the South-Africans of the optimum conditions for transfer, 90 million payable dollars in several years, tax levies reduced to almost nothing and a working population which worries about the progressive disappearance of the infrastructures medical and social that financed until now the company. The courses of copper start to go up. But in Zambia, it is not sure that everyone can benefit from it"
in french
9 000 mineurs licenciés, soit près du tiers des effectifs. Tel est le premier résultat de la privatisation, il y a quelques mois, de l'entreprise des mines de cuivre zambienne, la ZCCM. Soumis à la pression des autorités financières internationales, le gouvernement de Lusaka n'avait pas le choix. « Si vous voulez un rééchelonnement de votre dette et une aide financière internationale, il faut privatiser vos mines de cuivre » ont expliqué aux Zambiens la Banque Mondiale et le FMI pendant plusieurs années. Il faut dire que ces mines aux équipements obsolètes faisaient perdre de l'argent aux finances publiques. Deux millions de dollars par jour selon certaines sources.
Après plusieurs années de négociations et d'atermoiements des deux côtés, le géant sud-africain Anglo American, fort de sa présence au conseil d'administration de la ZCCM, a emporté le plus gros morceau. Trois des principales mines de la ceinture de cuivre zambienne, un conglomérat canadien prenant le contrôle de deux autres gisements. A des conditions défiant toute concurrence, expliquent les experts de l'ONG britannique Oxfam qui se sont rendus à plusieurs reprises sur place et pour lesquels Anglo American a sciemment fait traîner les négociations en longueur, pour profiter de la chute des cours mondiaux du cuivre et mettre littéralement le gouvernement de Lusaka à genoux. Résultat, pour les Sud-Africains des conditions de cession optimales, 90 millions de dollars payables en plusieurs années, des prélèvements fiscaux réduits à quasiment rien et une population ouvrière qui s'inquiète de la disparition progressive des infrastructures sanitaires et sociales que finançait jusqu'à présent l'entreprise. Les cours du cuivre commencent à remonter. Mais en Zambie, il n'est pas sûr que tout le monde puisse en profiter.
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