Record-breaking K43 Billion Contribution from Mining Sector in Zambia
The Zambia Extractive Industries Transparency Initiative (ZEITI) has revealed a remarkable surge in tax payments from the mining sector, reaching an unprecedented K43.3 billion in 2022.
This substantial 11% increase from the previous year, as independently audited, signifies the sector’s robust financial contribution to the nation.
The latest ZEITI report disclosed that government revenues from mining escalated significantly, surpassing the K39 billion recorded in 2021.
Leading the pack in contributions were prominent mines such as Kansanshi Mining, offering K15 billion, FQM Trident with K8.6 billion, and Lumwana Mine contributing K4 billion.
Impressively, this surge in revenue occurred despite a decrease in overall copper production and lower copper prices throughout the year.
Ian Mwiinga, Head of the ZEITI Secretariat, hailed 2022 as a record-breaking year for both mining revenue collections and ZEITI itself.
Mwiinga highlighted the success of ZEITI in minimizing reconciliation differences, emphasizing the initiative’s role in enhancing reporting standards within mining companies and government agencies.
Lower discrepancies between payments and reported receipts showcase the initiative’s impact on transparent reporting, providing the public with an accurate portrayal of annual mineral revenues.
Speaking at the launch of the 2022 annual report in Solwezi, Mwiinga emphasized the significance of ZEITI’s role in maintaining good governance in the mineral resources sector.
He urged for transparency and accountability in how the substantial returns from the mining industry are utilized for the nation’s benefit.
Representatives from government, the private sector, and civil society attended the event, seeking insights into the mining sector’s contributions.
ZEITI, as the Zambian chapter of the global Extractive Industries Transparency Initiative (EITI), continues to uphold the standard for the transparent governance of oil, gas, and mineral resources.
With a commitment to independence, ZEITI annually publishes a report documenting all payments made by mining companies and revenues received by the government.
The reconciliation process conducted by EITI ensures discrepancies are brought to light, reinforcing the initiative’s dedication to transparency since Zambia joined EITI in 2009.
