The country’s latest EITI Report reveals details about increased government revenues.
Members of the Zambian EITI multi-stakeholder Council and national secretariat
Government revenues from mining in Zambia increased by almost 50% in 2010, to US $750 million. This was disclosed when Zambia yesterday published its 2010 EITI Report in Lusaka.
The 50% rise is explained by a 16% increase in copper production and booming copper prices worldwide (up 25% from 2009).
On launching the report, Zambia's Minister of Mines, Hon Yamfwa Mukanga said that being transparent about the Zambia’s revenues is necessary in order for “Zambian citizens to maximise benefits from the mining sector”.
Mining is a crucial part of the Zambian economy, with the direct contribution to GDP being about 11% in 2010 (US $590 million) and expected to grow to US $1.35 billion in 2015, according to the EITI report. The indirect contribution might be as much as half the economy. Copper exports of US $5.8 billion accounted for 78% of the Zambia’s total exports in 2010.
The largest source of revenue was corporation tax, which was 33% of total mining revenues. Mining royalties were 11%. The EITI Report goes on to note that almost US $3 million of the revenue went into an Environmental Protection Fund, which is set aside to offset pollution and other ecological costs of mining.
The 2010 report revealed a tiny discrepancy of 0.23% between what the government said they had received and what the companies said that they had paid, down from 1.2% in 2009.
The report includes an outline of the tax regime explaining that exporters of copper and cobalt are charged 30% corporate tax, and operators 3% royalties on their production. The report also covers production figures and an explanation and breakdown of the flows through the partially state-owned mining company.
The EITI Report itself can be found on the website of the Zambian EITI: www.zambiaeiti.org.zm.
To learn more about the EITI in Zambia, please visit: www.eiti.org/Zambia