Mining Expert Charles Mulila says the ongoing process of formalising illegal mining activities through formation of cooperatives for possible issuance of mining licenses is a game changer in terms of increasing revenue for the country.
Mr. Mulila tells Flava News that Zambia has taken a bit of time to regulate and legalise operations of artisanal and small-scale miners, adding that there should be massive investment because it is expensive to run small scale mining operations.
He is of the view that if well organised; the sector can contribute massively to the Gross Domestic Product (GDP) of the country as well as improve revenue for miners including their immediate families.
Mr. Mulila points out that identification of cooperatives for possible issuance of mining licenses should be done in a manner that they are identified with tangible skills in mining.
He states that mining by nature is very destructive hence the need to assess the capacity of these cooperatives to take up smart mining practices.
And on commenting on Zambia’s debt restructuring deal, Mr. Mulila says while it is a commendable step, the government should take extra care not to accumulate more debt, stating that there is need for the country to maintain the minimum amount of the official international reserve.
He says government should address the value added tax (VAT) refund being lost to the mining sector, stating that a lot is being paid out while the state is receiving little through the mineral royalty tax.
Mr. Mulila further states that the International Monetary Fund (IMF) deal should be based on the aspirations of government to achieve a well structured homegrown programme aimed at improving the country’s economy.
