Zambian gov't urged to involve parliament in mining agreements

The Zambian government should involve parliament in the renegotiation of agreements with mining companies to ensure national interests being considered, an economic researcher has advised.

Commenting on recent announcements that the Zambian government would renegotiate mine agreements to enable Zambia benefit from prevailing high copper prices, David Punabantu, member of the Economics Association of Zambia, said this would also be in line with the country's investment act which provides that expropriation of any investment should only be done with parliament's approval, Punabantu said.

Recently, Finance Minister Ng'andu Magande said the government would negotiate with mining companies in the country to raise the mineral royalties as a way of reaping benefits from rising copper prices.

The southern African country is one of the world's leading copper producers, turning out 440,000 tons of copper last year.

The latest government statistics showed that copper earned 510 million U.S. dollars in 2002 and by 2004 generated more than 1 billion dollars.

Mineral royalties in the country stand at 0.6 percent currently which the government said was too low under current circumstances.

Magande has disclosed that the government would consider lifting the mineral royalties to around 3 percent subject to negotiations with various mining companies.

Source: Xinhua