The government of Zambia has limited the number of mining licences to be acquired by companies. The country’s mines minister Paul Kabuswe made the announcement and said the move aims to curb speculation and promote investment.
Mining firms will now be restricted to five licences and those that need more will have to justify. The restrictions follows suspension of issuance of mining licences in February. The ministry of mines commissioned an audit in response to public complaints about a lack of transparency.
Audit findings
“Initial process audit findings have confirmed our fears that some companies own too many mining rights, using either a single or multiple companies with the same beneficial owners. We have had a lot of licences being used for speculative purposes and we want to curtail that. The audit show that some companies own as many as 50 licences. It also found that some were not registered with Zambia’s patents and companies registration agency and may not be paying tax. The licensing department, which was expected to re-open on April 11, will resume work on Oct. 19. Illegal miners would be given 90 days of amnesty to register with the ministry of mines,” said Kabuswe.
The mining landscape in Zambia covers production of multiple mineral raw materials, including copper, cobalt, gold, nickel, manganese, emeralds, beryllium, myriad gemstones, sulfur, zinc, coal, iron ore, steel, limestone, uranium and other platinum-group metals. Mining has long been a significant primary sector industry and contributor to the Zambian economy by providing export income, royalty payments and employment.
