Reuters Lusaka
Zambia had suspended the issuance of new mining licences to root out potential corruption and “clean up” the process, the minister of mining in Africa’s top copper producer said yesterday.
“My ministry has with immediate effect and until further notice suspended the issuance of new applications, renewal and transfer of mining and non-mining rights,” minister Wylbur Simuusa announced at a media briefing.
“During the suspension period, there will be an audit and clean-up of all mining and non-mining rights.”
Zambia’s long-time opposition leader, Michael Sata, won election to the presidency in the country a month ago on a populist platform, with criticisms of foreign investors and promises to crack down on corruption.
Simuusa said the current issuing process was inefficient.
“I’ve also observed irregularities, litigation and allegations bordering on corruption,” he said.
Simuusa said last week that the government would negotiate larger stakes in projects with foreign mining firms. It planned to revamp tax collection to improve transparency and maximise its own benefits.
The existing tax collection process was difficult to administer and its revision would lead to greater tax compliance by the mines, he said.
Foreign mining companies operating in Zambia include Canada’s First Quantum Minerals, London-listed Vedanta Resources, Glencore International, Barrick Gold, Brazil’s Vale and Metorex of South Africa.