Saturday 22 December 2007

Chingola residents sue KCM over pollution

This article straight out of The Post yesterday. There's nothing really to add to the story.

"ABOUT 2000 Chingola residents have sued Konkola Copper Mines (KCM) over the pollution of the Kafue River, complaining that they have suffered from eye and skin diseases as a result of using the contaminated water.

The residents have also sued Environmental Council of Zambia (ECZ) and Chingola Municipal Council as second and third defendants respectively.

James Nyasulu explained on behalf of the other residents that on November 6, 2006, KCM negligently and wrongfully caused to be released into the Kafue River mining effluents containing concentrations of copper, manganese and cobalt thereby contaminating the water supply for the whole Chingola.

Nyasulu further explained that the negligence was due to the failure to ensure safety checks on pipes, acid levels, maintenance of all necessary equipment related to the securing of a clean environment and the prevention of spillage.

He added that ECZ contributed to this negligence by failing to carryout its statutory duties of inspection, supervision and ensuring that KCM maintained its pipes.

Nyasulu pointed out that Chingola Municipal Council also contributed to the negligence by not ensuring that KCM complied with the safety standards of the local council.

He averred that the council failed to warn the residents of the dangers of drinking contaminated water.

Nyasulu complained that as a result of the negligence of KCM, ECZ and Chingola Council, the residents have suffered from diarrhoea, eye infections, and severe skin conditions as well as other latent effects that only manifest in the long-term such as brain damage, kidney failure and respiratory diseases.

He lamented that the damage inflicted on the residents was not different from the damage done to the people during chemical warfare with little or no regard to their health, welfare and lifestyle.

The residents are claiming damages from KCM, ECZ and Chingola Municipal Council and are asking the court to make ECZ and the council to perform its statutory duties to the residents by prosecuting KCM.

They are also claiming compensation for the pain they have suffered and want the court to order KCM to issue quarterly statements of maintenance and safety levels of its acid pipes."

3 comments:

MrK said...

Hi Alastair,

Today there is an article on massive Russian investment in the mining industry.

There is no mention of the conditions, or whether the state will finally share in the profits or whether taxes will again be deferrable.

However, it seems that the government is letting in elements it cannot control. Besides massive Chinese investment, does Zambia really need a massive Russian presence as well?
Russians seek to enter Zambian mining sector
By Chibaula Silwamba
Friday December 28, 2007

MrK said...

And by the way, happy holidays and an great New Year.

MrK said...

I'm just wondering. While Zambia is receiving 'donor aid' instead of taxes from the mines... While Equinox Minerals and KCM don't pay taxes in Zambia - are they still paying income tax in Australia, Canada, India and the likes?

It seems to me that they are not paying taxes in Zambia, so they can pay taxes in countries that don't need the money. I am against double taxation (for instance, in Canada and Zambia), but if a choice has to be made, why don't they just pay taxes in Zambia instead?

Anyway, just as a reminder, this is why Equinox states it hasn't payed taxes so far:

On why Equinox is saying why it isn't paying 25% income tax:

c) Income Tax

The Company accounts for income taxes in accordance with the liability method. The determination of future tax assets and liabilities is based on the differences between the financial statement and the income tax bases of assets and liabilities, using substantively enacted tax rates in effect for the period in which the differences are expected to reverse. Future tax assets are recorded to recognize tax benefits only to the extent that, based on available evidence, it is more likely than not they will be realized.

http://www.equinoxminerals.com/files/document/259_438309.pdf