Philemon Muchana, the Chamber of Mines Joint Supplies and Purchasing Committee chairman, said trade protectionist policies were necessary to safeguard local manufacturers and suppliers of mining equipment thereby creating employment and growing the sector.
“It is saddening that there are no policies to safeguard local suppliers and manufacturers of mining equipment. Instead of giving foreign companies employment and business, let us protect our own industries by promoting them,” he said, insisting that local quality could match that of imported equipment.
According to 2012 mineral output projections compiled by the Chamber, the industry is expected to play an important role in economic revival as official statistics show that it has accounted for at least $900 million in export revenues in the first four months compared to $660 million for the same period last year.
Meanwhile, the chamber president, Winston Chitando, said the sector stood ready to push economic growth but was weighed down by lack of capital and investment because of harsh taxes.
“A myriad of taxes such as capital gains, licence and registration fees, corporate tax, local authorities’ tax as well as environmental management fees burden the sector,” he said.
Calls for the scrapping of harsh mining taxes come at a time when government is turning to the sector to boost its coffers through raising taxes. Finance Minister, Tendai Biti has proposed that an evaluation of the inventory of the country’s minerals resources be undertaken to assess mining sector players’ contribution to the fiscus. He said the sector must contribute funding for critical “development and service delivery”.
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I agree with the concerns of the minister for mines. The local industries need to be supported and protected to a degree so as to bolster the local industry and at the same time create jobs for local communities and the like. On the other hand the locally produced product also needs to be of a standard that equals that of overseas countries. This i believe could be resolved by educating and supplying the technical educational skills required to teach the local people ways of manufacturing mining equipment that equals that of other countries. I have my own ideas as to how working together with government and local industry to come up with a positive win win situation for the government, local industry manufacturers and mining operators beit local or international companies. Its not good enough that foreign companies come into a country like Zimbabwe, which is a mineral rich country, bring their equipment, expertise and leave after mining the rich resources of the country. Leaving behind land that has been denigrated, baron and usually leaving the communities with little left after the mining has been completed. There needs to be a program that allows the mining of resources with a fair taxing or royalty system that leaves the communities empowered to become self sustaining after the mining has been completed.
My associates and I have considered a proposal that would assist with the lack of finance available for projects in Zimbabwe, the further development of the communities in which the mining is being conducted. with the foreign miners, the government, local communities and local industries benefiting together. I would like the opportunity to put this forward to the government for their consideration.
Thank you for the opportunity to express my concerns both for the government its people, their resources and further community sustainability and development.
John Barresi
Executive Director
The Australian Gold Bullion Exchange
theaustralianaubullionexchange@gmail.com