The Zambian cabinet has approved new regulations for preferential thresholds for local suppliers in the mining sector, Chief Government Spokesperson, Cornelius Mweetwa, said in a statement on Sunday.
Mweetwa stated that the cabinet’s decision was important for government to ensure that local suppliers of goods and services were given priority to do business with the mining companies.
The bill entitled, “The Minerals Regulation Commission Bill, 2023,” according to Mweetwa, would result in increased participation of local suppliers in the supply of goods and services in the mining sector as well as strengthen partnerships with foreign companies.
“This will also strengthen partnerships with foreign companies to facilitate skill transfer and ultimately contribute to job and wealth creation,” Mweetwa stated.
He added that before now, various stakeholders, including government, were concerned with the challenges faced by local suppliers of goods and services in the mining sector, as they were expected to compete against well-established foreign companies.
“It must be noted that other countries, within the region, have adopted policies and legislation that promote preferential treatment and it was just important that Zambia adopts such policy decisions,” he said.
“This is in order for the local suppliers of goods and services to expand their businesses and fully participate in the growth of the economy for the good of every Zambian.
“The objectives of this Bill include, among others, to establish the Minerals Regulation Commission and provide for its functions; regulate and monitor the development and management of mineral resources and the establishment of the Mining Appeals Tribunal.”
Mweetwa explained that currently, the Mines and Minerals Development Act 2015 did not adequately provide for, among others, the establishment of the Minerals Regulation Commission and the effective and efficient regulation as it did not provide for monitoring of compliance and carrying out of enforcement activities in the mining sector.
“This has resulted in challenges such as increase in illegal mining activities, environmental degradation, poor occupational health and safety standards, unsustainable exploration and mining methods, as well as loss of Government revenue,” Mweetwa said.