Pressuring mining companies via European Investment Bank

++This entry is based on a note sent to MineWatchZambia network members by Peter Sinkamba, Executive Director of Citizens for a Better Environment, Kitwe:p_sinkamba@yahoo.co.uk. Peter's lobbying effort was also reported in The Post yesterday (as always with The Post you need a subscription to use this link) in a story that also noted backing for renegotiation of the Development Agreements from the UN Economic Commission for Africa economic affairs officer Mzwanele Mfunwa. Mfunwa urged government to offer public consultations before entering future mining agreements: "It is important also to communicate with the members of the public because these resources belong to every Zambian."++

Peter writes:
"We wrote to European Parliament in December last year to find out whether it was in support of mining companies in Zambia which were beneficiaries of its funds through the European Investment Bank (EIB), but which companies were frustrating government initiatives to increase revenue through increase of mineral royalty tax. In our letter we expressed concern that mining companies were going contrary to the spirit of the EU country strategy including poverty alleviation strategies such as debt-write off.

We wondered how else government was expected to reduce its dependence on foreign aid and loans if EU supported corporations were going to be in the forefront denying government maximize local revenues from mineral resources at the time mineral prices were unprecedented. We called for direct intervention in the matter by EU parliament. The response we got from EU Parliament sounded positive - that EIB has been directed to ensure corporations that used proceeds from the EU need to adhere to EU poverty alleviation strategies.

Sincerely,
Peter Sinkamba"