Since the Privatization of the mining companies, the country has had no harmonized framework to accurately monitor this important sector of the economy. Several Consultants have been engaged to conduct surveys on the manner the mining sector is monitored and the following are some of the key findings:
- The various governmental agencies are currently operating in silos with minimal interaction and with no line of sight of the entire mineral value chain;
- The reporting framework of the mineral production figures is currently manual and therefore, susceptible to inconsistencies;
- The Mining companies are currently on a self-reporting system, and declare the quantity and quality of mineral with inadequate monitoring and verification from government agencies;
- There are a number of equipment and human capital capacity deficiencies across the Ministry of Mines, ZRA and other agencies;
- There are currently no stringent disincentives for the mining companies not to report incorrect data and there are insufficient measures to deter such behavior.
It is against this background that the Government of the Republic of Zambia in its quest to provide an informed, transparent and non-discriminatory platform for optimal collection of taxes and other fiscal revenues from Zambia’s mining industry, commissioned the Zambia Revenue Authority, to lead a multi-institutional project for monitoring of Zambia’s mineral production and sales.