Zambia’s government has announced plans to get its people a greater share of the country’s vast copper wealth. But with its proposals still in the balance, action is still needed.
News of the government's proposed new tax delighted campaigners. But multinational mining companies working in Zambia must abide by the rulings for them to make any difference. Email KCM, one of the biggest, to make sure it does.
The proposals could net Zambia an extra $415 million in 2008 alone.
The fight continues
Christian Aid has joined forces with SCIAF and Action for Southern Africa to call for a fairer deal for ordinary Zambians. Now the Zambian government has announced new tax measures in a Bill which could earn it an extra $415 million in 2008 alone.
It’s huge progress. However, the Bill isn’t yet law. We need to keep the pressure up to ensure mining companies do not hinder its progress.
We have already asked our campaigners to email KCM, the biggest copper company in Zambia. We’d like to thank all of you who took the time and trouble to campaign for this change both in the UK and in Zambia.
Now we need you to write to them again, asking them not to undermine Zambia's efforts to tackle poverty. Email them now!
The background
The proposals in the present Bill will introduce new tax measures which, if accepted by the mining companies, would double what it would have earned under the current mining tax regime.
The government has announced that it will use the money to ‘implement vital programmes in health and education’ and the additional resources have the potential to make a huge difference.
It would allow the government to triple its expenditure on healthcare in a country with an average life expectancy of 37 and, based on our calculations, would be sufficient to halve poverty by 2015.
The Zambian government has also committed to make public the payments received from the mining companies and how these payments are spent. This was a key ask of the Undermining Development report.
What you can do
Mining companies could demand compensation for the revenue they will lose under the new tax measures. One, whose identity has not been disclosed, has already complained to the president about the new tax regime.
We are calling on the country's largest mining company, KCM, to accept these new arrangements and refrain from seeking compensation.
Please email Kuldip Kaura – deputy chairman of KCM and chief executive of Vedanta, its British-based parent company – asking him to ensure that KCM and Vedanta abide by the new tax regime and do not seek compensation from the Zambian government.
Your campaigning is working and is having a significant impact. Please keep up the pressure and help Zambia get a fair deal.