ZAMBIA ALTERNATIVE MINING INDABA REPORT

4TH ZAMBIA ALTERNATIVE MINING INDABA 2015

REPORT

“Our Natural Resources, Our future,

Putting Local Communities First”

Ndola, Copperbelt 23rd - 26th June 2015

ZAMBIA ALTERNATIVE MINING INDABA REPORT 2015M

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TABLE OF CONTENTS

Acknowledgments ................................................................................ 4

Abbreviations ....................................................................................... 5

1 INTRODUCTION ......................................................................... 6

2 FIRST DAY OF THE INDABA ..................................................... 8

2.1 WELCOMING REMARKS ...................................................................................................................... 8

2.2 THEOLOGICAL REFLECTION ............................................................................................................... 10

2.3 ZAMI OFFICIAL OPENING .................................................................................................................. 10

2.4 SUMMARY OF MINE VISITS ............................................................................................................... 11

2.4.1 Mopani Mine visit ...................................................................................................................... 11

2.4.2 Chibuluma Mine Visit ................................................................................................................. 12

2.5 SIDE EVENT ........................................................................................................................................ 13

3 SECOND DAY OF THE INDABA ............................................... 14

3.1 MORNING DEVOTION ....................................................................................................................... 14

3.2 COMMUNITY VOICES ........................................................................................................................ 14

3.3 SOLIDARITY MESSAGE ....................................................................................................................... 16

3.4 REFLECTIONS ON THE ZAMI 2014 OBJECTIVES ................................................................................. 17

3.5 KEY PRESENTATION: HUMAN RIGHTS AND EXTRACTIVE INDUSTRIES .............................................. 20

3.6 ROUND TABLE DISCUSSIONS: HUMAN RIGHTS AND EXTRACTIVE INDUSTRIES ............................... 21

3.6.1 Free, Prior, and Informed Consent (FPIC) .................................................................................. 21

3.6.2 Occupational Health, Safety, Casualization and Labour _ ......................................................... 25

3.6.3 Value Addition in Extractive Industries, is it possible in Zambia? .............................................. 27


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3.7 KEY PRESENTATION: NATURAL RESOURCE MANAGEMENT ............................................................. 29

3.8 ROUND TABLE DISCUSSION: NATURAL RESOURCE MANAGEMENT ................................................. 30

3.8.1 Climate Change, Environment and Forestry .............................................................................. 30

3.8.2 Sustainable Development and CSR visa vie Extractive industries .............................................. 33

3.8.3 Mineral Revenue Management (Collection, Allocation, Utilisation and Benefit Sharing) ........ 35

4 THIRD DAY OF THE INDABA ................................................ 36

4.1 COMMUNITY VOICES ........................................................................................................................ 37

4.2 ROUND TABLE DISCUSSIONS: NATURAL RESOURCE TAXATION ....................................................... 38

4.2.1 Illicit Financial Flows and Beneficial Ownership ........................................................................ 38

4.2.2 Small Scale Mining, Oil and Gas ................................................................................................. 42

4.2.3 Women Children and Mining ..................................................................................................... 45

4.3 MINERAL WEALTH PRESENTATION ................................................................................................... 46

4.4 CAPACITY BUILDING SESSION ........................................................................................................... 47

4.5 CLOSING REMARKS ........................................................................................................................... 47

5 FOURTH DAY OF THE INDABA ............................................... 48

5.1 MORNING DEVOTION ....................................................................................................................... 48

5.2. REVIEW OF DRAFT DECLARATION .................................................................................................... 49

5.3 VOTE OF THANKS .............................................................................................................................. 49

5.4 SUBMISSION OF DECLARATION AND MARCH PAST .......................................................................... 49

APPENDIX I - Declaration ............................................................... 50

APPENDIX 2 : FINANCIAL CONTRIBUTIONS ......................... 56

APPENDIX 3– Attendance List ........................................................ 57


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Acknowledgments

We would like to extend our sincere thanks to the following organisations for their unwavering financial support towards organising the 2015 Zambia Alternative Mining Indaba:

Action Aid Zambia

Caritas Solwezi

Caritas Zambia

Catholic Relief Services

Centre for Trade Policy and Development

Council of Churches in Zambia

Jesuit Centre for Theological Refection (JCTR)

Joint Country Programme- (NCA, DCA, CA)

Norwegian Church Aid-South Africa

Oxfam Zambia

Publish What You Pay Zambia

Southern Africa Resource Watch

Zambia Episcopal Conference

Our thanks also go to the various members of the organising committee for the tremendous work well done. The organising committee included:

Edmond Kangamungazi Susan Kirimania Nkula Goma Petson Kabala Edward Lange Mtwalo Msoni Nzali Mubita Moreblessings Chidaushe

Chisomo Phiri Khazike Sakala Felix Ngosa Nsama Chikwanka Eneye Museko Tommy Singongi Carol Kiangura

A special thanks also goes to the rapporteurs of the conference and report drafters:

1. Muloongo Simuzingili 2. Domia Phiri 3. Matanga Munkonze 4. Namatama Wakunguma


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Abbreviations CA CCZ

Christian Aid Council of Churches in Zambia

CEP Zambia Copperbelt Environment Project

CSO Civil Society Organisation

CSR Corporate Social responsibility

CTPD DCA

Centre for Trade Policy and Development Danish Church Aid

DMMU Disaster Management and Mitigation Unit

DTA Double Taxation Agreement

EFZ Evangelical Fellowship of Zambia

EITI Extractive Industry Transparency Initiative

EPF Environmental Protection Fund

FPIC Free, Prior, Informed Consent

FQML JCP

First Quantum Mining Limited Joint Country Programme

MDG Millennium Development Goals

MRSM Mineral Revenue Sharing Mechanism

MSD NCA

Mining Safety Department Norwegian Church Aid

NGO Non-Governmental Organisation

NGOCC Non-Governmental Organisations Coordinating Council

REDD+ Reducing Emissions from Deforestation and Forest Degradation

SARW Southern Africa Resource Watch

SDG Sustainable Development Goals

TEVETA Technical, Entrepreneurial and Vocational Education and Training Authority

TIZ Transparency International of Zambia

UN United Nations

UNDP United Nations Development Programme

UNZA University of Zambia

VAT Value Added Tax

ZAMEC Zambian Media Council

ZAMI Zambia Alternative Mining Indaba

ZCCM Zambia Consolidated Copper Mines

ZEMA Zambia Environmental Management Agency

ZNS Zambia National Service


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1 INTRODUCTION

Africa has an abundant natural resource endowment, boasting 12 percent of the world’s oil reserves, 40 per cent of its gold and around 60 percent of its uncultivated arable land. Despite strong export performance in the sector, African countries have not yet fully harnessed the full potential of their rich natural resource endowments or employed their natural resource advantages as an engine for inclusive economic growth. While the macroeconomic impact of extractive sector operations is significant and usually, if not uniformly positive the microeconomic impact of extraction enterprises is even more uneven, and in many cases could be greatly enhanced if companies adopted more explicit policies and practices to expand economic opportunities along the value chain. For instance in 2011-2013, Zambia’s extractive revenue was roughly US $1.5bn annually, which represented around 30% of total government revenue. However the communities from which these companies extract commodities are among some of the poorest in the country. Despite being the world’s 8th largest producer of copper (2013) and the 9th largest producer of cobalt (2012), Zambia has been recorded to be one of the poorest countries in the world where 62.8% of the population lives in multi-dimensional poverty. Recent reports highlight that seven out of ten people live on less than two dollars a day and the average life expectancy in Zambia is 51 years. Civil society response toward these challenges is to create a platform where the civil society, mining companies, government and the communities can engage and find practical solutions- thus the creation of the ZAMI. Expanding economic opportunities in the communities and districts where they operate is the extractive companies’ best interest. It can lessen their production cost, provide continuity of supply and distribution outlets for goods and services, enhance social license to operate, and mitigate risk and potential conflict. Yet approaches to economic opportunities enhancement are widely adopted or consistent across the extractive sector. There is room for understanding what has worked and why, scaling up best practices, and strengthening mechanism for collaborative action which benefit extractive companies, government, civil society and the communities. The Indaba provides an opportunity to learn, understand and take action to promote human development through extractive industries. Background

The 4th ZAMI was held from the 23rd to 26th June 2015 in Ndola, in the Copperbelt province, at Fatmols Lodge. The event brought together different stakeholders to deliberate on different issues in the Extractive Industry. Different perspectives from various sections of society such as the church, civil society organisations, the private sector, international organisations and international experts created the right environment for fruitful discussions on how best to deal with the challenges faced in the Extractive Industry in Zambia.


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Since 2012, the ZAMI has been held every year and has been organised by the three church mother bodies1 in collaboration with selected members of Civil Society Organizations2 in Zambia. At its inception, this has been an event to draw the public’s attention to how we can all contribute to achieving sustainable development by making use of the natural resources the country has been endowed with. Over the years, it has been observed that the standard of living in Zambia has not significantly improved despite the continuous exploitation of natural resources. Purpose and objective

The purpose of the ZAMI is to discuss the ways in which Zambia can make use of its comparative advantage and better the lives of the people. Specifically, the main objectives of the event were:

To provide a platform for CSOs to exchange experiences on the sector-specific issues with a focus on potential areas, gaps and challenges in areas of taxation, growth and investment, land, environment, policy and legislation

To produce recommendations for the Government of Zambia and extractive industries for enhanced management and utilisation of extractive sectors for sustainable development

Under the theme “our natural resources, our future, putting communities first”, the 2015 ZAMI put the communities as the focus of discussions and looked at the challenges they face and how they can benefit from Extractive Industry. Representatives from different communities were engaged and given a platform to share their experiences through community voices. The participants of the conference were therefore able to effectively deliberate on real experiences of the communities brought out and exchange ideas on how best the government, mining companies and CSO’s can respond to these issues. The ZAMI has been used as a major advocacy event that helps stakeholders debate on issues related to promoting equity, transparency, and accountability in the extractive sector. Themes of the indaba and the rational The 2015 ZAMI centred its discussions around three sub-themes 1) ‘human rights and extractive industries’, 2) ‘natural resource taxation’ and 3) ‘natural resource management’. The Extractive Industries have been associated with human rights violation concerns for many decades. There have been a number of reports on the impact of mining on communities through displacements, restricted access to water and access to land as a result of mining operations. In light of this, the 2015 ZAMI was dedicated to highlighting such issues and the possible interventions that could address the growing human rights violations concerns and reports through the sub theme ‘human rights and extractive industries’. The sub-theme on ‘natural resource taxation’ looked at how best Zambia can gain from its extractive industry and deliberated on ways to increase tax revenues as well as the role of different organizations in ensuring these resources are utilized efficiently. The sub-theme on ‘natural resource management’ looked at how Zambia’s natural resources need to be managed for the equitable

1 Council of Churches in Zambia and the Zambia Episcopal Conference 2 Civil Society in Zambia under the auspices of Publish What You Pay Zambia, among them, Caritas Zambia, Center for Trade Policy and Development (CTPD), Action Aid Zambia, Joint Country Programme (JCP) in Zambia, JCTR, Diakonia Sweden in Zambia, Southern Africa Resource Watch (SARW) and Transparency International Zambia (TIZ).


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and sustainable benefit of its citizens. The full benefits of the natural resources can only be enjoyed by citizens if they are managed in a transparent and accountable manner. Layout of the report This report provides a summary of the activities and discussions that took place during the Indaba. The Indaba was a four day event that included a number of important presentations from different sectors which were enriched with community testimonies from different mine community in the country. These were complimented by two mine visits and a theatrical performance. After all major discussions during this conference, the key issues and recommendations were drafted into a Declaration (See Appendix), and after a peaceful march-past, presented the Declaration to government. The Conference Process The four days conference was structured as follows:

Day 1: This day focused on the official opening of the indaba and field visits to the mine sites

Day 2: This day was devoted to parallel workshops, and a total of six parallel sessions took place and two key presentations were given

Day 3: The third day also involved parallel workshops and a key presentation

Day 4: After three days of extensive discussion, the conference ended by adopting the conclusions and recommendations through a declaration. This was followed by a match past

2 FIRST DAY OF THE INDABA

2.1 WELCOMING REMARKS

The Chairperson of the Indaba was Rev. Suzanne Matale from Council of Churches in Zambia (CCZ). In her opening remarks she emphasized the importance of gathering to share experiences and enrich our resolve to what we are required to do as people of faith. She appealed to everyone to participate effectively and have the courage to stand firmly in response to the people in Africa who were still enslaved by poverty. Sombo Chinda from Diakonia gave the welcoming remarks and was representing the Indaba co-hosting institutions. She expressed her excitement over the ZAMI being the fourth indaba Zambia was hosting since 2012 and to being the first in the region outside the Cape Town indabas. She explained that this was a great platform to demand for benefits from the mining industry. The mining industry had massive potential with over 8 billion dollars being invested into mining projects, however about 60% of people are still living below the poverty line. Sombo further expressed concern over the management and governance of the Extractive Industry as this has severely affected the country’s economic conditions. The varying statements and decisions from government with regards to mining tax and VAT refunds has posed a huge challenge to economic


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development. In her remarks, Sombo also highlighted the need for transparency in the extractive industry in order to curb vices of corruption, mismanagement of funds and most of all illicit financial flows. She further urged the government to desist from fiscal policies and taxes that increase the inequality gap. She stressed that community participation is essential in any decisions that should be made by government with regards to the extractive industry. She concluded her remarks with the words “yes together we can make mining work in Zambia”. Presentation from Oxfam The Oxfam Country Director, Diales Judge gave the second opening address were she began by sharing a story of how she met a girl in Mufulira who was facing various challenges, and although this girl is a recipient of the Oxfam Support, expressed concern over the dire needs of people who have to ‘work themselves to the ground’ in a resource rich country. Inequality, transparency and the environment framed her discussion as she pointed out the lack of equal income distribution between the poor and the rich, a lack of a proper enabling environment and the lack of transparency and accountability in the leadership. In addition, she highlighted the following key issues:

The high levels of inequality have caused high levels of poverty in Zambia;

The illicit financial flows are a major cause of Africa losing money;

The poor governance structures has caused inequitable resource distribution, and thus high levels of poverty; and

The increasingly environmental damage/degradation caused by the extractive industries has led to poor agriculture output

She recommended that Zambia needs to have a situation where both the mining companies and the citizens benefits from the minerals in Zambia, and emphasised the need to enhance transparency and accountability in the extractive industries. In her conclusion, she also recommended that short and long term measures that require government and the private sector to work together to achieve economic equality needed to be put in place. Presentation from United Nations Development Programme (UNDP) The Assistant Resident Representative from UNDP, Ian Milimo, pointed out that Zambia was still far from achieving the MDGs, out of the 8 MDGs that were set out it had only managed to achieve 3 goals. Furthermore, there will be a meeting in September 2015 in Europe to usher in the sustainable development goals which will be implemented for the next 15 years. He stated that UNDP was willing to partner with both CSOs and government in promoting the human rights principles and pushing the country’s development agenda forward. He urged the audience to count UNDP as partners present to listen and work together in finding the needed solutions to the various challenges faced in the extractive industries - noting that the industry was performing poorly in human development. Lastly, he commended the organizers for bringing everyone together and observing the gender protocol as there were more females present at this year’s Indaba.


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2.2 THEOLOGICAL REFLECTION

Rev. George Chibubi from EFZ began his reflection by asking everyone to reflect on whether the capitalist kind of leadership was benefiting the country. In his reflection, he stated that poverty levels in Zambia were still increasing despite the country being under a capitalist leadership, and he wondered whether capitalism was still sustainable. He pointed out that there were a lot of minerals in Africa but it still remained a poor nation. He challenged all leaders to be more proactive in addressing issues of inequality and oppression to promote equitable resource distribution/allocation. Minerals are a diminishing resource, therefore, there is need to come up with solutions to help the poor who are being affected by the extractive industry.

Rev. Chibubi stressed the need to secure equitable development agendas to ensure the young generation’s future is secured by taking keen interest in the issues affecting us and leaving things in the hands of investors. Everyone needs to rise as a country and create markets and ensure education for our children and reduce poverty. He went on to stress the need to find solutions as a country on how to protect the environment from degradation. He added that job creation must be taken as a priority to enhance people’s opportunities to progress, and emphasised the importance of diversifying the economy. The issues of taxation also need to be looked at critically and tax regimes must be clearly negotiated to ensure that deals benefits citizens. The mining companies must be able to plough back to the country after the extractions to ensure citizens benefit. He further advised that despite the lack of a proper law or policy on CSR, mining companies must be able to benefit the people. The government and other key stakeholders must be robust on how these mining industries operate by coming up with critical effective measures on how to address challenges of resources utilization.

2.3 ZAMI OFFICIAL OPENING

The official opening of the 2015 fourth ZAMI was done by the Guest of Honour, Honourable Charles Zulu, Deputy Minister of Mines Energy and Water Development. In his speech, the minister mentioned that government would like to have a win-win situation where stakeholders and shareholders are able to come together for a common cause. He also mentioned that government was aware of the role Civil Society Organisations and other institutions were playing in the country, and that Government is willing to work with CSOs to overcome the challenges that are faced due to the extractive industries. He added that the mining industry must be able to adhere to the 2008 Mining Act, as well as CSR. He advised that the nation embrace what other leaders on the African continent have successfully done, and begin to collaborate in these countries, He added that the concerns put before him have been addressed, for instance


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the issue of putting a pipe over the ground, which was later buried under the road. There are a number of issues that have been dealt with and Charles urged CSOs to partner with government and help them govern. He added that the Indaba was a good platform to discuss what faith based institutions and CSO’s want to do and appreciated what they have been doing in providing advocacy. The Minister also asked the participants to reflect on the benefits and the negatives of the extractive industry. He stated that the negative impacts include; environmental pollution, noise pollution, mining accidents, water pollution and environmental pollution. It is cardinal that government ensures that mining companies adhere to the rules and regulations, Rev. Chibubi gave the word of thanks after the speech from the Minister.

2.4 SUMMARY OF MINE VISITS

The Indaba participants visited two mines Mopani and Chibuluma. Mopani is located in Mufulira and started its operation in 1987. Chibuluma mine is located in Kalulushi and started its operation as an open pit mine in 1997 and later moved to underground mining years later. The purpose of these visits was to get to know the operations

of the mines, its activities and how on how the mining companies interact with the local communities. The interaction achieved at this conference and the mining visit was expected to lay a foundation for future networking, information sharing, analysis and advocacy for on-going collaboration of key stakeholders in monitoring the management of natural resource wealth in the private and public sphere

2.4.1 Mopani Mine visit

There were about 30 Indaba participants that visited the Mopani Mine. During this visit, it was highlighted that Mopani Mine has identified the lack of skilled workers and the few training institutions in Zambia as a challenge


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faced in the mining sector in Zambia. They have therefore placed skills development high up on their agenda. In the past, there were training institutions in different towns, however there was no one to support them and they closed down. The then trained people have died, retired or left the country for better opportunities - there is need to fill the gap as there are many companies and few technical personnel. Mopani has therefore put up a training facility that offers a range or courses to school leavers in health and safety, Information Technology, shift operation, supervision, management, leadership and others. All of which are accredited by TEVETA. The mining company has also expressed their desire to develop a contractor training institution in future. The visiting team was taken through different sections of the training institutions consisting of different departments such as the electrical section, pneumatics-mechanics, instrumentation section and heavy duty and repair. The discussion facilitated by Cleopas Sinyangwe (Mopani) mainly centred on the concerns surrounding compensation, health and safety, employment and Corporate Social Responsibility. It was revealed that Mopani has a Safe Mining Program where a number of safety messages are rolled out occasionally. The mine is also concerned about environmental sustainability. When Mopani started its operation at the mining site, there was a problem of Sulphur Dioxide in the area as 100% of it was released. However, Mopani is now able to capture almost all of this with now only 3% being released from the mining activities. Mopani stated that they employ as many Zambians as possible; and they are employed based on merit. In response to the concerns raised about resettling people close to the mine, it was made clear that the government was working on the issue, however noting that Mopani has a legal license to operate in the area and that government was responsible for allowing the mine to operate in these areas. In addition to the stakeholder meetings Mopani hosts every month, it was recommended that they use ZAMEC as a platform for discussions so there is a better understanding by stakeholders over what the mines are doing for the communities.

2.4.2 Chibuluma Mine Visit

Chibuluma Mine contributes only about 2% of the Zambian Copper, the mine has been involved in community projects which centre on women empowerment and skills development programmes, training girl children in knitting and sawing and building primary schools for the communities. The mine currently has three primary schools and a conservation farming project called, Chisokone/Chibuluma multi-purpose cooperative that the mine supports. The first primary school the Indaba team visited was Mulemu School which has been in existence since 1997. The school currently has 708 pupils and 52 teachers. The mine has connected water and electricity to the school, constructed one teacher’s house, built a library for the school and hired a qualified teacher to take pupils through Mathematics and Science. The mine also gave examples of its community work were the mine stated that the trained 3 grade nine drop out pupils with sewing skills and these girls have been empowered to be sewing school uniforms for the other Chibuluma supported school projects. For the skills development programme, the mine has engaged UNZA to train local community members on brick making and basic constructing skills. The mine represented stated that the Mine provides these individuals with the needed materials and requirements for making the bricks. After the bricks are made the mines purchase these bricks from the community members hence helping them to make an income to sustain themselves and their families. They have also trained the local community on conservation farming and this community formed up a cooperative called Mulemu Chibuluma Community Development Project. Through this cooperative, the community has managed to


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secure 14 hectors of land which is being used for growing maize for the community. Kamuchanga Primary School is another school that the mine supports. The school starts from Grade 1 to 6, and has 243 pupils and 14 teachers. Some of the notable contributions of the mine are a one by two classroom block built in 2013, introduction of literacy classes and the uniforms for pupils. Chabala Primary School which has more than 400 pupils and 15 teachers is also maintained by the mine. During the discussions that followed, there was a concern over what the mining companies were doing with regards to environment pollution and the dust around the communities which was as a result of mining activities. It was however noted that Chibuluma was planning to start a project of reforestation – or tree planting to reduce dust and promote reforestation. It was recommended that Chibuluma start implementing activities that protects the health of communities they were operating from. Furthermore, mining companies must enhance their engagements and dialogue, not only concentrate on engaging traditional leaders, but the communities and the local councils also.

2.5 SIDE EVENT

An evening event was organized to discuss the Sustainable Development Goals and the MDGs. The event was sponsored by UNDP. The Assistant Resident Representative/Advisor Poverty and MDGs Mr Milimo from UNDP made a presentation on the MDGs and the discussion and consultations that were done to develop the SDGs. In his presentations, it was mentioned that the MDGs that were not met were captured in the SDGs, further emphasizing that the SDGs are focusing on both the quantity and quality of service delivery. The SDGs will focus on the issue of inclusiveness for sustainable development. It was further stated that it was through consensus events like the Indaba that most issues that affect people could be pushed to government for actions. Plenary Discussions

The discussion during this session mainly centred on the need for good governance in addressing the challenges in implementing the development goals. While it may appear to be a challenge to implement the 17 SDGs if the 8 MDGs were hard to achieve, it was brought to light that countries are free to choose the SDGs that they feel are suitable for them and can be achieved.

In addition to setting realistic goals, the issue of character and moral dilemma must be addressed as this a growing crisis in Zambia. Our leaders are a reflection of the entire generation; however they should not be the only ones to blame for the goals not being achieved. The need for CSOs and faith based organisations to raise awareness of good governance, quality leadership and transparency was pointed out, as everyone has the responsibility to build leaders.

The participants further noted that only through good leadership can these goals be achieved. Lack of information is a barrier to achieving these goals - as without access to this information people are not aware of what is going on around them. Lack of transparency, accountability and good governance will hinder achievement of these goals if not addressed.

Nonetheless, the goals are achievable if there is a spirit of ownership. It was noted during the discussion that the issue was not with MDGs or SDGs but with the implementers. The UN must assist in working on the mind-set of people in charge of implementation as good governance is key for successful development. However, it is unrealistic to expect the UN to do everything - everyone must participate


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and work together in achieving these goals. A participant commented further on the challenge of implementing these goals as certain parts of society have not fully understood the meaning of these goals. It is believed that the conditions imposed on these development agendas are not conducive. It was then agreed that more work needs to be done to educate people on these goals.

3 SECOND DAY OF THE INDABA

Day two of the Indaba comprised various community voices, reflections of the previous Mining Indaba from different institutions, and key presentations and six round table discussions around the themes ‘human rights and extractive industry’ and ‘natural resource management’. The morning session began with a prayer from Pastor Litanga Silishebo, and a recap of the previous day from Namatama Wakunguma. The indaba Chairperson Reverend Suzanna Matele thanked everyone for their continued participation.

3.1 MORNING DEVOTION

Rev George Chibubi from EFZ gave the morning devotion. During his devotion, he emphasized that environmental protection and protection of social beings be enhanced in order to reach sustainable development. However, it should be noted that this process can only be done through the process of reforestation, a practice that is currently being done by Kansanshi Mine. The implementation of the SDGs will remain a challenge for as long as there is isolation with institutions affecting the operation and system with the mining industries. It was also noted that the fact that Zambia and most African countries lack mineral processing equipment or machinery has resulted in countries losing a lot of revenue that could have helped in achieving economic development. Hence, there is need for Zambia to start processing its own minerals which will help individuals have improved lives. In addition, transparency should play an important role in revenue distribution. Rev. Chibubi pointed out the need to implement tax and royalty collection to create a value chain that is transparent, creditable and accountable. This will enable government to collect more revenue that will boost the national economy of Zambia which will lead to sustainable development.

3.2 COMMUNITY VOICES

This session gave an opportunity to community member representatives to share their experiences living in a mining area with the Indaba participants. Musele Nkisu Taskforce- North Western province Pastor G Jolombo a community member from Musele community mentioned that the community and the mines are engaging effectively and that the government is also engaged in many areas. It was pointed out that there are a number of land disputes that happened between the Musele community and the Kalumbila trident Project. Although the matter is being handled by the government, the major issue regarding land in the Musele


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community has not been resolved. Two things were pointed out as being necessary for both the people of Musele and Kalumbila mine:

A clear understanding of the legal position of the institution of chiefs. The legal property rights of the institutions of chiefs and the people subscribing to the chiefdom should have a clear and conscious understanding of property rights to avoid disputes between land owners and extractive industries.

The moral obligation to respect the property right of customary land owners. It has been observed that the Zambian government is not doing enough to guide the investors about property rights. Therefore, there is need for government to do more in educating and protecting the people of Musele with regards to their property rights. Nonetheless, the following are the benefits that Kalumbila Mines have provided to Musele taskforce:

Kalumbila mines has contributed to the rehabilitation and the expansion of the Kankozu Clinic

Expanded Musele Primary School, Musele Clinics and Kisasa Basic School.

Provided the people of Musele with agricultural inputs in order to increase food security

Employed more than 2000 workers and half of the 2000 include local people of Musele chiefdom

Offers community development programs It was also mentioned that the community of Musele is looking forward to sharing the community development plan so as to reach an agreeable memorandum of understanding with the mines. Sinazongwe District- Southern Province The community voice presentation by Kenani Njonvu was cantered on the two mines based in Sinazongwe district, Maamba Collieries and Kandabwe. In 2010 Maamba collieries was privatized, but before the privatization of the mine it used to provide water to the community. However this changed in 2010 when Maamba Collieries became a private company called Maamba Collieries Limited – (MCL). Despite the water challenge the investors in Maamba managed to keep their promise and built 63 houses for the community. They also promised to construct roads in the community. The challenges faced in Maamba community as a result of the extractive industry included but not limited to the following:

Lack of clean water. Water has been contaminated due to dumping by the mines as the stream that the community used to collect water has been contaminated by the chemicals that come from Maamba Collieries. This has resulted into people having to walk long distances to find clean water sources.

Grazing land for animals has been grabbed by the investors and no compensation has been made to the community.

Lack of consultations. There has been no communication between the community, investors and government on how people will be compensated.

On the other hand, Kandabwe Coal Mine, it was noted that the people of Kandabwe are very disappointed with the government. This is after the government’s decision to give back a license to a Chinese investor whose license had been revoked due to the fact that the mining processes that he had been practicing caused health hazard causing death. The challenges that the community of Kandabwe is facing as a result of the extractive industry included, but were not limited to:

Lack of water. The supply of water has reduced


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Land has developed huge cracks due to the mine blasting activities

People are living in fear as there is a ditch that has become very dangerous to the community. For example one child almost lost his or her life.

He appealed that government follow up on the issues affecting the people so that the people of are taken care of. Kalumbila Mine – North Western Province The third community voice came from Maggy Kola representing Kalumbila mines. In her statement, she appreciated and praised Kalumbila mine for their support that has contributed to the livelihood sustainability of the community despite shortages of water supply in the community. Some of the advantages highlighted are:

The mines relocated the community to a resettlement village and the people were compensated

The mines construction of houses for displaced people

The mines construction of a school.

The mine has empowered the community through farming in order to promote sustainable development through food security

The mine has brought economic growth to the community.

The mines immediate response to emergencies.

The mines provision of education facilities to the community

Kansanshi Mine- North Western province Chamwanza Janet from Kansanshi mine who is a member of Kumunda Women’s Group commended the mines for the good job they have done for the community. In her statement, she praised the mine for providing empowerment programmes to the community that include adult literacy, village saving banks and sewing skills. There has also been a village saving bank where the local people can save money and borrow in order to improve their businesses. She challenged NGOs and other stakeholders to come on board to assist in the empowerment programmes. Further to this, she emphasised the need for other stakeholders, and more especially NGO’s, to assist with more skills development programmes.

3.3 SOLIDARITY MESSAGE

This session looked at the messages of solidarity, encouragement and support from other countries attending the indaba. The solidarity message was given by Gilbert Makore from PWYP Zimbabwe. Gilbert said he was happy that the government and mining companies were well represented at the 2015 ZAMI. He further went on to mention that CSOs and faith based organisations are not policy makers but advocates and it was their job to reach out to the government and the policy makers to make sure that they implement good policies which will benefit the local people in our countries. Gilbert (PWYP) also mentioned that it was not necessary for people during this indaba to start pointing fingers at one another but instead make use of the alternative platform that should help them come up with solutions towards the various problems faced in community.


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3.4 REFLECTIONS ON THE ZAMI 2014 OBJECTIVES

Mr Edward Lange led the audience through the previous recommendations that were made during the 2014 ZAMI. He advised the house to be realistic when setting the targets to be achieved. He then called upon the representatives of various organisations to explain on the recommendations they took and how far they had gone in implementing them. Centre for Trade Policy and Development

Obry Michelo the Tax Justice Programme Officer from the Centre for Trade Policy and Development (CTPD) was the first to present their objectives. He informed the Indaba that CTPD followed up on their objectives by achieving the following:

Empowering communities to voice out issues on extractives and engaged communities in the areas they are working in as part of community participation

Followed up with Ministry of Mines and the Ministry of Finance on the old DTAs and how they were negotiated. A study of incentives was also done.

Engaged with the national assembly regarding the implementation of mineral royalties. This was done in order to ensure that this act is implemented.

Sensitised the community to demand what they can benefit from the extractive industries.

It was noted that CTPD will share the documents with all the issues to the public.

Caritas Zambia

The Programme Specialist at Caritas Zambia, Edmond Kangamungazi spoke about the recommendations they were tasked with and how far the institution had gone with implementation. He informed the Indaba that last year, 38 recommendations came out of the Indaba and 8 were taken up by Caritas, and these were mainly concerned with transparency and accountability. Caritas was tasked to look at the EITI bill and by the end of last year the EITI bill was under discussions. He added that Caritas has been ensuring that EITI is well disseminated and implemented through being member of the ZEITI council. Edmond observed that as of June last year, the mineral royalties was at 6% and by October last year the mineral royalty had increased to 9% and 20% for open pit mining, and it was unfortunate that as of now government had taken us back to where we were last year at 6% costing the government K2.3 billion in revenue. In addition to following up on the mineral royalties, Caritas has been looking into the windfall tax that has been affecting the economy with the hopes that government reconsiders how windfall tax is implemented. Caritas also looked at beneficial ownership and the main objective behind was to look at how much land is owned by the extractive industries.


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Council of Churches (CCZ) Reverend Petson Kabala from CCZ informed the participants that they managed to have dialogues with government on various issues, and that they met with the Mayor of Mansa as well to find out the difficulties faced in that area. They also met with traditional leaders in order to involve them in the issues on land. Furthermore, it was added that an Indaba for Chiefs was hosted in Musele. CCZ reviewed the Mineral Resources Policy of 2013, and Rev. Kabala noted with sadness that some government officials were not aware of the Mineral Resource Policy. He also raised concern over the number of women and young girls in un-protective work gear in the mines.

He added that the main challenge that CCZ found in the Musele community in North Western province was displacements and resettlement issues. The people of Sinazongwe have been moved by the government five times to give way to Chinese investor and these people have not been compensated or have been taken to a place where the houses are too small to sustain a large family. The lack of coordination among stakeholders has contributed to poor performance of communities who have been affected by the mining industries.

Action Aid

The Tax Justice Advisor Mr Robert Lugolobi from Action Aid Zambia informed the Indaba that they were tasked to handle issues such as compensation. He called upon the government to work on compensation practices that affected the cultural and social aspects of the communities that come as a result of the mining industries. Capacity building is another task that was given to handle Action Aid tried to engage the government and the mining companies so that there is reasonable compensation in communities, such as those in Kalumbila community with whom they have been working closely with. He believes that the engagement they undertook in Kalumbila can be implemented in other areas where the community has been affected by lack of compensation by extractive industries. Robert stated that the legal framework and policy on compensation is weak, and more needs to be done for it to be successful or effective. The policies should be biased towards women. He revealed that Action Aid had undertaken the following:

A study was carried out by Action Aid to find out the impact of mining towards women.

A study on taxation, and the issue of illicit financial flows and policy was carried out. The studies show that illicit flows affect the growth of the national economy.

A study on transfer pricing was undertaken and the results were that Transfer Pricing exists as a result of the weak legal framework

A study on tax incentives was carried out. The Tax Incentive Brief will be launched in July 2015

Plenary Discussions

The discussion raised concern over the impact the previous Indaba has had in addressing land issues. A concern was raised over the amount of power the President has over decisions on land matters, stating that it was very biased and disadvantaged the traditional leaders. The discussion questioned the Land Act 1995 and its bias since the President has more powers compared to the chiefs. CTPD was questioned on empowering people on different issues and to what extent they engaged with Ministry of Finance. Addressed to Action Aid Zambia, the participants wanted to know if there is any legislation


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that has been put in place by the government with regards to the issue of compensation and displacement.

Participants also questioned what CCZ has done to change the situation of houses in Mansa, and wanted an update on whether government had made any commitments after the dialogue with them. In response to the questions raised, CCZ said there was a lack of policies on displacement hence the need to develop a policy that is strong and will protect the people who have been displaced. Consultations are under way to advocate for something better that will be able to help sustain the families that have been displaced.

The Indaba was informed that the challenges faced by the people in Kansanshi and Kalumbila had to do with houses. It was pointed out that during platforms such as the Indaba, the Ministry of Mines should be engaged to come and discuss with the various stakeholders. A participant enquired on whether anything had been done about the size of houses in Kalumbila as some community members have reported that the houses are too small. The size of resettlement house has always been an issue. As a result of the pressure that has been received by constructors, ZEMA approved the construction of houses and about 300 houses have been extended. The replacement of houses has been appreciated by the communities as some of the people who were displaced are being given houses; for instance, polygamous men were given house according to the number of wives they have.

The participants were encouraged to continue advocating for better houses as there was no policy for displacement in Zambia. It was also noted that in 2013 about 6133 jobs were lost after the introduction of the tax regime as a result there are a number of people who are unemployed. The investors in Kansanshi blame the government for the reversal of tax regime and that it has failed to negotiate on behalf of the mining companies. The participants further inquired on how Kansanshi looked into the issue of health, schools and distance to the market, and how have these issues been resolved. It was noted that the women who gave community voices from Kansanshi and Kalumbila did not talk about challenges they are facing in the communities.


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3.5 KEY PRESENTATION: HUMAN RIGHTS AND EXTRACTIVE INDUSTRIES

The key presentation under ‘human rights and extractive industries’ was given by Dr Claude Kabemba from SARW. Dr Kabemba begun his presentation by mentioning that Zambia is a resource rich nation but mining within the country was still not having abundant impact on the country. He stated that moral rights suggest that all of us have the right to benefit from the minerals that are under our feet. In reference to the issue of small houses in Kalumbila raised on the previous day, he advised that it was our responsibility to take the government to court if it was felt their rights have been violated. He then provided two arguments for relations between the community and the extractive industries:

Moral argument: It suggests that Zambians have the right to benefit from minerals under their feet. As soon as people stop benefiting, it causes a moral argument and a contradiction. Hence

people need to question the contradiction between abundance and poverty, poor wages and very bad conditions of work for people living in a democratic state.

Legal and human rights argument: This is found under the fundamental principle of human rights on international norms and standards, the national construction legislation and the regulations norms of standards.

Dr Kabemba (also mentioned that there are so many declarations and documents that put emphasis on human rights at all levels, and recommended that the constitution should begin to look at the issues of human rights and extractive industries He showed concern over the continuous blame on foreign investors and the tendency to overlook local companies that are causing the same harm as that of foreign owned He added that it is important to ‘Attack the Brand’ so as to make use of the miming industries to the benefit of the local communities in Zambia. He further added that there journalists and schools need to speak out on the issue of rights. He observed that at international level, the UN through resolutions in 1903 set the principle for the permanent implementation of policies that recognises the state as the main body responsible for protecting its natural resources. It states that the rights of the state and that of the people must be excised to benefit the people of the country to promote economic growth.


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Dr Kabemba also pointed out that Africa has the African Charter which was adopted in 1996. The charter states that all people shall dispose freely of their resources and these rights shall be excised to protect the people and in no case shall the people be deprived of the benefits obtained from natural resources. At national level, Dr Kabemba informed the Indaba that we have the Zambia Constitution as well as the Draft Constitution. Unfortunately, the current constitution falls short in protecting its natural resources and the bill of rights does not protect the people living around the mining industries. The current constitution does not promote transparency and accountability in the mining sector. He added that the draft constitution has no provision where it links extractive industries and human rights. Our constitution does not refer and speak about human rights and this is a serious matter that needs to be looked into before the draft constitution is adopted. He observed that the biggest challenged faced is Fragmentation, instead of promoting sustainable development through human rights, CSOs have been found to compete among themselves. He suggested that:

CSOs need to create models that will allow each and every CSO to reach the communities to promote sustainability; hence this can only be done if the legislative is very infective.

CSOs need to work together and spread the information through all social media to promote human rights and stand up for what rightly belongs to the people of Zambia.

CSOs need to expose the relationships that exist between politicians and mining companies so that the minerals benefit the people that are supposed to benefit.

There is need to bring mining schools, traditional leaders and churches who will educate people about the abuse of mining companies with regards to human rights to achieve what needs to be done in order to protect the rights of the people of Zambia.

In his conclusion, he stated that there is need to evaluate whether there is need to quantify the impact of the mining companies on the environment and people. He again quoted the Special Rapporteur from UN “States and nations usually disregard for communities’ inputs in natural resources is counter-productive and is likely to contribute to an erosion of confidence to prevent the economy system’’. Dr Kabemba stated that the fight must cut across human rights abuses to protect people from mining industries when they open and when they close so the that human rights abuse is minimized.

3.6 ROUND TABLE DISCUSSIONS: HUMAN RIGHTS AND EXTRACTIVE INDUSTRIES

There were three round table discussions that took place during this session.

3.6.1 Free, Prior, and Informed Consent (FPIC)

This session was moderated by Musamba Mulenga from Caritas Zambia.


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Mpenza Mwanza from Kitwe Land Alliance gave the main presentation. He explained that Free Prior and Informed Consent implies that consent is sought well in advance of any authorization or commencement of activities and the time requirements of indigenous consultation and consensus processes are respected. In his presentation, he stated that the United Nations Declaration on the Rights of Indigenous People (UNDRIP) makes clear that States have a duty to obtain the FPIC of indigenous people for measures that may require the removal of indigenous people from their communities to give way to extractive industries. He questioned whether the principle that the community has the right

to give or withhold its consent to projects proposed could really affect the land they customary own, occupy or otherwise use. He further added that the rights of indigenous people are usually violated but insisted they should not be forcibly removed from their lands or territories. His presentation also highlighted the following key issues:

Indigenous people found the recognition by their national governments, international communities and as well as companies that they have the rights to give or withhold consent from project development, the rights relates direct to the rights of the indigenous people to control their own future and the future of their children.

Indigenous people have the right to withhold free and prior informed consent to protect their livelihood so that sustainable development is achieved

Indigenous people are usually left out of the planning and decision-making process and as a result land is usually taken without their consent.

He concluded by emphasising the need for consultation between governments, local communities and investors and information should be accurately presented in a manner or form that is understandable to indigenous peoples. Discussants The first discussant Mr Manford Mulongo from DMMU stated that displacement has been an issue and government has not implemented an instrument or policy whose main objective is concerned with protecting the people that are affected by the mining industry. He informed the participants that a national re-settlement policy was being implemented - the policy emphasises that the local communities are the first shareholders so that people are able to benefit from the extractive industries. Ms Susan Kirimania (TIZ) was the second discussant in the FPIC plenary session. She was concerned about the wider social and environmental impacts of climate mitigation but added that REDD+ has been


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implemented as a project to try and keep the forest intact. The main idea for the REDD+ will require changes to the current planned forest use and this may have implications for forestry users which may include indigenous and local communities. She also noted that FPIC is important because it ensures that the risks of corruption are minimized because it promotes transparency and accountability. However the challenges associated with this may affect traditional practices such as the use of timber and other forest products for subsistence and sale. She further stated that when the FPIC is not respected it results into the violation of customary land rights. Susan recommended a provision that will provide grievance mechanisms to address complaints and feedback from government or any other stakeholders.

A Kankoyo community member made it known to the participants that the houses in his area have developed huge cracks due to blasting from the mines in their area. There has also been an increase in commercial sex workers who are targeting truck drivers in the area. He went on further to explain that the ZCTM programme that has been provided with funds for cleaning up the environment is not doing much. There were also issues of illegal allocation of land in Kankoyo and land grabbing by investors who are given licences to open up extractive industries. This has led to high levels of displacement. A representative from New Israel in Solwezi

explained that mining development and exploration has had some costs and benefits to communities, but the costs outweigh the benefits. He stated that in 2005, 42 households were displaced from the Kansanshi mine site and most households were persuaded to move and were compensated between K700, 000 and K1, 500,000 (un-rebased). He further added that there is hardly any transport available to help in transporting their products and the road in the area is deplorable especially during the rainy season. However, there is a promise to receive bicycles that will help them with transportation to and from the market. New Israel is a community involved in growing beans, maize, and vegetables, but there are difficulties in accessing the nearest market. This has made farmers in most cases sell their products at very cheap prices, hence making farming in the area very uneconomical. He also stated that a hammer meal was given but has not been working since it was installed at the site. New Israel has a number of challenges. The market has become further as the investors did not fulfil their promise of providing the community with transport that can help them access the market in a more efficient manner. The health facilities are also located in very far places, and as at 15th July 2014 the community did not have any health centre that was operational. To take care of their health needs, the communities have been depending on a ZNS clinic, which is about 10km away. Nonetheless, a one by three school was built but it has not been operational to the community, as a result, the children have not been to school since 2005 when they were displaced because the distance between the settlement area and the nearest school is far.


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Ms Mariam Harmony from FQML said that they have involved the Kalumbila community in their plan to implement developmental projects so that sustainable development is achieved. FQML has consulted the community on what things can be done better in order to try and improve their community. They have built schools, roads and clinics in places where they had no such facilities and the schools that needed to have a facelift had been upgraded. Participants were encouraged to see the achievements that a Kalumbila mine has mentioned. She further encouraged CSOs to do some research before holding big events so that they are able to have a clear picture about what is on the ground. Plenary Discussion

Questions arose over the best approach to dealing with investors who pollutes the environment and at what level the mines are engaging other stakeholders in respecting the FPIC.

Participants raised concern over ZEMAs attendance at such events that has eventually resulted in them not consulting the community whenever their implementing new projects. It was then suggested that the best the community can do is to sue ZEMA, although the government should always intervene when the community is being faced with such problems.

TIZ was also questioned on the experience it has in implementing the REDD+ project. In response to this, TIZ informed the participants that the only REDD+ project that has been implemented is in Lufunsa, and the main challenge faced was the lack of policies implemented by law makers’. As a result the project cannot be extended to include other parts of Zambia. The government needs to come on board before some of these projects are implemented. However, TIZ will also educate the communities on their rights.

After deliberations on the Free, Prior, and Informed Consent (FPIC), the following are the recommendations that came out of the discussions:

CSO’s must understand FPIC and the policies such as land policy, settlement policy and help build the capacity of the communities to uphold their rights. The materials for communicating should be in local languages and government should be able to understand and apply the principle because they are part of the community

Community members should be provided with information of any plans on land that would affect them in one or the other which may be as a result of investment

Communities should be empowered to make decisions therefore, consultation plays a very important role and it should be put in mind that an informed mind makes informed decisions.

The FPIC principles should be respected and practiced in the forest sector as this promotes transparency and accountability in the design and implementation of REDD+ actions.

In order for REDD+ projects and programmes to have local credibility, the negotiation of lasting agreements on the use of resources has to recognize the rights of local communities who depend on a particular forest are for their livelihoods.

FPIC needs to be understood as a right that requires the project developer to undertake an ongoing process of communication, with consent sought at key stages in the process.

There should be provision of grievance mechanisms to address complaints and feedback.

Indigenous people can decide to withhold things that they are not happy with; hence the government should make sure that the policies that protect their human rights is enacted.


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The FPIC project should benefit all indigenous people and the decision making process should be transparent, accountability and creditability.

To promote sustainable development the national resettlement policy should protect indigenous people as this is a tool that local communities are the first shareholders in.

CSO’s need to appreciate FPIC and recognise if it is the right document or process to engage the communities

3.6.2 Occupational Health, Safety, Casualization and Labour _

This session was moderated by Mr Edward Lange from SARW. During this session the health and safety of mining workers was discussed. The reasons and effects of casualization were deliberated to highlight how rights of workers are being violated and promoted. Presentation from Ministry of Labour

During the presentation, a representative from Ministry of Labor informed the meeting that casualization was on an increase in the country. She defined casualization according to International Labour Organization (ILO) as ‘the explicit and implicit kind of employment’ she further stated that casualization is short term and the contract under this type of employment do not go beyond 6 months and there are no benefits at the end of the contract. She also pointed out that government was however aware of such vices and it was putting up measures to ensure that casualization reduces by putting up clear policies and guidelines that will protect casual workers from being exploited especially those in the

extractive industries. She stated that government was committed to have these guidelines/policy in place by the end of the year (2015). She informed the meeting that after privatization, the number of mining accidents has increased. The meeting was informed that during casualization most people are abused without knowing because jobs under casualization do not have social security – most casual jobs were not for more than six months. The meeting was informed that the high levels of casual workers were also as a result of limited jobs markets for the country. There were more youths graduating every year with limited companies that can employ. It was stated that globalization has also limited the job market in the country.


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Presentation from the Ex Miners - Banda Mr. Banda informed the meeting that mining workers were at risk of being exposed to silica which is harmful and can cause health hazards including death. It was further stressed that the people who were more exposed were the casual workers who were working without protective clothing it was clear from the discussions that the silica which was coming from the extractive industries was polluting the air and the water the people were drinking and most surrounding communities were affected. Another issues pointed out was lack of protective clothing to most miners especially casual workers who were exposed to a lot of dangers during extractions. Mr Banda also stated that local miners were not considered as priority when giving contracts by government (ministry of Mines), an example was cited that the ex-miners in Mufulira formed an association dealing in mining in 2002 and they only managed to get a mining license in 2010, and they felt neglected by the government Presentation from the National Mining and Allied Workers Union of Zambia

It was pointed out that casualization was a big problem in the Extractive industry, further stating that before privatization of the mining companies there were fewer people that were employed as casual workers. The situation got worse when most companies were sold and not much had been done about the situation. The presenter appealed to government to come up with policies that would protect the rights of casual workers especially in the extractive industry. It was further stated that pollution had impacted people’s health because the water, air and vegetation people were using is contaminated. The presenter also stated that despite all these issues of pollution pointed out on different forums, not one nothing had been done to take a step further to assess the

impact on pollution on people’s lives. The presenter from the mines also pointed out that there were high levels of accidents in the extractive industries and the people that were highly affected were the casual workers who were working without protective clothing. Plenary Discussion

It was pointed out that the mining workers were at risk of being exposed to Silica, which is harmful and can cause many health hazards including death. It was further stressed that the people who were more exposed were the casual workers who were working without protective clothing. It was clear from the discussions that the Silica, which was coming from the extractive industries, was polluting the air and the water people were drinking, and most of the surrounding communities were affected.

The following effects or disadvantages of casual jobs were brought out during the discussion:


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Lack of benefits e.g. gratuities, medicals, High levels of turnout – casual workers can leave employments to and whenever they feel like and the company cannot hold them to account, Lack of statutory rights and this is a cost of government. For example causal workers are not entitled to pay NAPSA, ZRA and other statutory obligations High levels of injuries with limited or no compensation from the companies, etc.

A concern was raised that local miners were not considered as priority when giving contracts by government (Ministry of Mines). As an example Mufulira was cited - the ex-miners in Mufulira formed an association to deal in mining in 2002, and only managed to get a mining license in 2010. There was a concern that the Union was not paying attention to the issues the communities and ex-miners were facing. It was further advised that the Union should not be biased towards the employees in the mines, but also focus on the ex-mining workers.

The participants recommended that government put up deliberate policies that would clearly explain how the extractive industries will be disposing wastes from the industries to avoid pollution of water, air and the environment at large. Government was challenged to critically look into the issues of casualization during the Labour laws review. It was further stated that government needed to use the right based approach in the enactment and implementation of Labour laws.

CSO’s were also challenged to do proper research in terms of the extent the pollution affects human life. ZEMA, Ministry of Mines and Ministry of Labour should critically look into the issues of displacement by ensuring that communities that are displaced are given houses that they can live in. The Ministry of Labour and other stakeholders must ensure that the policies around safety of casual workers are enacted to ensure safety and protection especially in the extractive industries.

3.6.3 Value Addition in Extractive Industries, is it possible in Zambia?

The plenary session deliberated on how Zambia can actually operationalize Value Addition from the Extractive industry, and the challenges associated with this.


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Presentation from the Council of Churches in Zambia (CCZ) The first presentation was done by Mr Nsama Chikwanka from CCZ stated that there are two aspects to value addition – on the one hand there is one that is part of the six stages of the mining process (exploration, development, mining, extraction, smelting and value addition) and on the other is looking at the sector as a whole and what opportunities exist. He went on further to explain that it is possible at all the stages of the mining process to add value, however, the only way this can be done is if the sector is analysed as a whole and opportunities that exist are identified. Nsama also mentioned that the mines in most of the

communities have added value through the roads they have constructed. He added that value addition can be done through engaging in activities that are related to mineral processing noting that it is also the responsibility of the community. The government and mines alone are not responsible for taking care of our resources and all stakeholders should think of various ways of value addition. He added that there is need for geo-mapping in order to know where the minerals are located in order to come up with safe and sustainable ways of extraction. Presentation from Kalumbila Mine

The second presentation was given by Garth from Kalumbila who stated that the mines have brought power to Kalumbila and are aiming to carter for 50,000 residents within the next 3-5years. He also gave insight into a development project that will involve building up a town, in which both local and international planners have been consulted as part of the process. He mentioned that the development project has faced a major challenge on the issue of ‘land title deeds’ - the conflict of traditional and customary land issues. The fact that the houses are on traditional land has made it impossible for the mines to mortgage them, therefore, the houses in the area can only be rented and not bought or mortgaged. Garth further stated

that there is a growing market with various commercial agriculture schemes that has been set up to feed the people within that area.


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In his conclusion, he recommended that the Zambian government systematically identify the potential goods and services that it can be able to provide and not only leave everything to the mines. Further to this, he pointed out that the manufacturing sector within the country is not well developed and a lot of work must be done to improve this area. Plenary Discussion

Participants requested for practical examples of a city that developed from mining and remained independent after the mine left. In response Garth informed the participants that Ndola is one such example, and further added that for a city to remain sustainable after a mine leaves is only possible if the government is involved. There was a suggestion that the only way to see sustainability in Solwezi is if the Government passes legislation that will hold the mines accountable for their financial flows. It was further noted that because there is no legislation there is no transparency. Another comment from the participants was that there is a conflict in the legislations as there are too many laws that end up contradicting each other. Making it hard to know what law to follow.

The meeting further recommended that:

Institutions such as the Chamber of Mines should attend such platforms in order to give people the much needed information.

Communities must be consulted on their needs and must be part of the decisions that are made concerning their communities.

Africans must stop exporting raw materials and should be able to produce finished products.

Individuals must not be dependent on the mining companies but should be innovative to come up with their own strategies and small scale industries.

3.7 KEY PRESENTATION: NATURAL RESOURCE MANAGEMENT

The key presentation for the ‘Natural Resource Management’ thematic area was given by Dr Claude Kabemba. He stressed the need to extract with a vision so as to build the mineral governance system and added that geo-knowledge was important to know our resources. He also emphasised the importance of the development of a mining policy, mining legislation and the institutions that are capable of running the mining industries as illicit financial flows is a major weakness of mining industries in Zambia. He further added that taxation is a key component of running the mining industries and it is important for the state to own its own tax regime. Plenary Discussion Lillian from the office of the Auditor General informed the Indaba that for people to benefit from the mines, there was need to know how business is done. She said that there is need to build capacities in various ministries. In addition to building our capacity, it is important to have a deliberate policy to invest in government skills.


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It was questioned whether there was a mining company in Africa that pays for using underground water. It was pointed out that in South Africa, mining companies pay for using underground water and that it was only fair for mining companies to pay for water. A further query on how we could start mitigations against those that abuse Zambians human rights in mining companies. The response was that in order to start a mitigation facts were needed, and CSOs mostly had the facts but did not have the evidence.

3.8 ROUND TABLE DISCUSSION: NATURAL RESOURCE MANAGEMENT

There were also three plenary sessions that took under this theme namely i. Climate Change, Environment and Forestry, ii. Sustainable Development and CSR, and iii. Mineral Revenue Management.

3.8.1 Climate Change, Environment and Forestry

Chisomo Phiri from Publish What You Pay was the moderator for this session.

The main presenter during this session was a representative from the Office of the Auditor General. It was pointed out that the forestry policy, institutional and legal framework should be reviewed. It was emphasized that government should use the REDD programme to reduce deforestation and forest degradation. This will be done as a way of encouraging most developing countries to participate in making the post 2012 climate change regime. The programme also seeks to build collaborative approaches to land and forest management in developing countries. The need to implement the Clean Development Mechanism

(CDM) was emphasised as this project will include rural electrification projects using solar panels or the installation of more energy efficient boilers as a way of reducing deforestation and forest degradation. This would therefore stimulate sustainable development and emission reduction. In addition to this, it was suggested that an emission reduction project in the country be enacted. According to the Kyoto Protocol which the government of Zambia ratified in October 2006, this would lead into a Certified Emission Reduction (CER) in order to curb climate change. It was stated that the government needs to spearhead the building of technical and financial capacity, and the institutional frameworks for the promotion of CDM projects implementation. Good Practice Guidance for land use should also be implemented in order to monitor, report and verify the amount of bio-carbon emissions Zambia is experiencing.


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It was pointed out that forests are one of the most important natural resources in Zambia. They support local livelihoods and contribute to the national economy. It was also noted that forests provide a wide range of environmental services which include conservation, watershed protection, soil and mitigation of global climate change among others. There has however been a high level of deforestation and degradation which has occurred in recent years. According to the presenter, the forestry department legislative (Forest Act of 1973) on forest management does not address the current emerging issues such as climate change, global warming and the role of forestry in mitigating the negative impacts. The lack of strategic focus in the sustainable management of forest is due to forest management plans that have not been developed for all the forests in Zambia. It was also brought out that the level of unsustainable forest activities like encroachment of forests stood at 52% of the 487 forest reserves as of 2010. Inadequate staffing and funding resulting in the department not being able to carry out monitoring activities was also highlighted. Forest resource inventories were not carried out and this has resulted in the lack of reliable data to estimate changes despite the government spearheading the building of technical and financial capacity and institutional framework for the promotion of CDM projects and implementation of bio-carbon projects in the country. To assess the effectiveness and efficiency of the regulatory bodies in carrying out their overall responsibilities of managing the environmental degradation caused by mining activities, thirty one mining companies out of fifteen were visited in Zambia. The participants were informed that the audit involved collection of data at ZEMA, CEP and MSD and a selected number of mines. Despite having a comprehensive national policy on environment it was highlighted that there was no dedicated environmental policy on mining activities. The participants were informed that certain provisions of the policy have not been implemented, for instance the destruction of certain types of hazardous waste. In addition, it was noted that the Government has not carried out any review of National Policy. It was mentioned that there are no standards on how to manage Uranium in the country and as a result, the waste containing uranium by one of the big mines in Zambia was not properly covered to avoid radiation leaks. EPF put in place by Government has not worked effectively. It was further added that mining companies are not complying with the EPF’s regulations by not paying the stipulated contributions. The fact that regulatory institutions are unable to carry out monitoring regularly and consistently as they are mandated was also discussed. Zambia has high levels of content of sulphur dioxide (SO2) dust from stack emissions. Both surface and ground water are also being polluted and as a result of this pollution, the people living near extractive industries are extremely affected and exposed to health hazards. For instance, the pH value was as low as 3 in some mines instead of the recommended 6 to 9. In some dumps, there are no warning signs as required by law, it was pointed out that some dumps’ are in close proximity to residential areas below the required 500m. Discussants In his presentation, Abraham Chikasa from We Have Faith explained that Africa was at grave risk of food insecurity, and this would consequently lead to further poverty and hunger. Africa’s agriculture is rainfall dependant, therefore food production is in the ‘fate’ of rain. Small holder farmers or subsistent farming is the main source of Africa’s food. According to Abraham Chikasa, higher temperatures have increased evapotranspiration and lower soil moisture has resulted in the decline in the food production - all these are the


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results of climate change. He further informed that the 2015 Zambian budget provides for only K174.96 million (0.4 % of the total budget) to curb climate change. He then pointed out the importance of Climate Campaigning because climate change has many consequences that include:

Conflict and migration

Contributing to the loss of biodiversity

Demand for capacity building in technology transfer

Abraham Chikasa suggested the need to strengthen and mobilise faith communities and CSO constituencies around climate justice and sustainability. Further to this, he stressed the need to elevate the unified voice of faith communities, general communities and society to national and international platforms. Language of morality and ethics to the sustainable development and green economy discourse should also be considered. Abraham also emphasised the need to raise awareness, provide educational support and motivate action from local people on issues of climate change and sustainability. Discussion

Mining pollutes the environment which results into environmental degradation. According to Susan from TIZ, mining has caused threats to the forestry sector as most mining is taking place in the forestry which is causing environmental degradation and people in the community eventually get affected. She emphasised the need to implement measures in order to reduce emissions. She recommended that the government implement a policy that can protect the forestry sector; this is because studies show that in the past years, government has not been concerned about forestry.

A community representative from Sinazongwe informed the participants that the trees in Sinazongwe have depleted due to high levels of deforestation. The dump site is near settlement areas which has proven to be a challenge, especially where water and health is concerned. Investors did not plan for their dumping site, and as a result the area has high levels of air pollution and contaminated water. It was noted that the total number of de-gazetted areas in Zambia was about 64366 forests.

There were a number of recommendations that came from the session on climate change forestry and the environment:

There is need for decentralization of the forestry department

There is need for the promotion of sustainable charcoal production

Transparency and accountability of climate financing (adaptation and mitigation) should be enhanced

Forest guards should be reintroduced

The legislative or legal framework and mechanism on sustainable forest management should be strengthened and Forest management plants should be developed

The capacity of the Forest Department should be improved into an efficient and effective department

There is need to develop forest management plans in order to strengthen the sustainable management of forests

The Ministry responsible for environmental protection should review the National Policy to assess its suitability for implementation in protecting the environment


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Regulatory authorities should ensure that all mines that are required to contribute to the Fund are compelled to do so

Regulatory authorities should ensure that air and waste water released to the environment by mining companies does not exceed the standards prescribed and that companies that are polluting the air should be held accountable

3.8.2 Sustainable Development and CSR visa vie Extractive industries

This session was moderated by Oxfam and included presentations from mining companies, communities and other stakeholders. Presentation from Diakonia Sombo Chunda from Diakonia began her presentation by posing the following questions:

Why are we still talking about CRS because this concept was voluntary?

What is the role of government and mining industries in sustainable development goals? And whose responsibility is it?

Sombo went on to inform the meeting that sustainable development is about equitable distribution of resources having in mind the target group. She pointed out that CSR had been talked about for a long time, and it was important for the government and other stakeholders to understand that CSR was statutory. She also pointed out that mining companies should be careful with how they do the CSR as it had a high chance of creating a dependency syndrome among community members. Presentation from a community member in Chingola Nkandu from Chingola stated that the current mining companies around the Copperbelt province were not doing much in terms of CSR. He felt that it was better to take back Nchanga Consolidated Copper mine because the earlier companies were very effective in CSR, and this was evident through the clean townships around the province (for instance Chingola used to be one of the cleanest towns Zambia). He raised a question on whether there was need to make CSR a private/public partnership for easy monitoring. Presentation from First Quantum/Kansanshi Mining The First Quantum/Kansanshi perspective of sustainable development and CSR is that of helping people to help themselves to become better in future. They challenged CSOs to also adopt the concept of helping people to help themselves not spoon-feeding people to enhance sustainable development. It was illustrated that First Quantum used to build schools for communities sometime back but illiteracy levels were still very high. It was pointed out that the strategy was changed in 2013 – 2014 and they started investing in adult literacy program where a lot of the communities are benefiting and the program is doing well. The meeting was informed that mining companies were not making enough profits, especially after the 2008 mineral royalty tax introduction. Mining companies were paying more tax and the government was still expecting them to contribute to CSR, and this was pinching the small profits they make. It was also pointed


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out that most of the projects the mining company are implementing through CSR were projects that were planned by the government and these projects are always done in consultation with government before any implementation. Presentation from Barrick Gold/Lumwana It was pointed out that the mining companies believed in development that addresses the felt needs of the communities, hence most of the projects they were implementing through CSR were in consultation with the community members. Barrick Gold stated that sustainable development should be about empowering people to be able to speak for themselves on issues of development and being able to claim what they are entitled to. They believe in people being able to stand out on their own even in the absence of the mining companies. Presentation from Chibuluma Mining Company Mr Zulu gave a presentation on behalf of Chibuluma Mining Company and stated that they believe in sustainable development as both empowering people through education and skills development. He stated that Chibuluma also believes in dialogues with both government and communities for projects implemented to enhance sustainable development. It was further stated that the mining company was small and they were only contributing 2% of the copper Zambia was producing. However, Chibuluma mining company was one of the mining companies with very low number of accidents. Discussion

It was suggested that CSR should be legislated so that it is supported by the laws of Zambia. Mining companies were challenged to ensure that the implementation of CSR projects is in line with the issues that comes up during the Impact Needs Assessment, for example issues of displacements, air and water pollution and general environmental degradation. It was also observed that the mining companies had caused a lot of water, air pollution and noise coming from the mining companies with little or less benefits to the communities.

The communities stated that lack of dialogue between the communities and mining companies was still a major challenge. It was pointed out that CSR could only be effective when it gets to the level of creating a greater impact to the communities. Noting that before privatization, the mining companies used to pay less tax and after privatization the tax revenue base was increased, hence the understanding from the mining companies was that government collects more tax and it could take care for its people fully.

During the discussion, one participant pointed out that there was an issue in Solwezi were the Barrick Gold Mining Company forged community members’ signatures claiming that they consulted the community members on a particular issue. It was further stated that the issue was taken to the DC and other officials, and since then the community was not informed on the final resolutions. In reaction to this, a representative from Barrick Gold (Lumwana) disputed the claim and informed the meeting that the company never forged signatures from the community members and stated that it was a consultative process where community members consorted by appending their signatures without being forced.


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During the discussion, it was also pointed out that the biggest challenge between government and the mining companies was that both lacked dialogue with the communities during implementation of CSR. It was mentioned that CSR was not an end in itself, but government needed to act and do something for the communities where the mining companies are found – people felt like mining companies were a small government and that should not be the case.

Government was advised not to use CSR as a shield to run away from their responsibility. It was suggested that government put up projects in the communities where the mining companies are working from instead of depending on CSR. It was also emphasized that government needs to enhance the revenue collected through tax so that it becomes easier to implement some of the projects that had been pending for years. Some participants felt like CSR was one way the mining companies were getting recognition hence there was no need for them to complain. It was also pointed out that government and other key stakeholders must critically relook into the issue of CSR to avoid the dependency syndrome by the communities, and ensure CSR is sustainable and the projects being implemented are for the wellbeing of the communities.

3.8.3 Mineral Revenue Management (Collection, Allocation, Utilisation and Benefit Sharing)

The main speaker during this session was Michelo Obrey from CTPD who began his presentation by defining the MRSM as a system to determine the disbursement of resource rents and other transfers paid by corporations to host governments. He went on to highlight the following three key regimes for resource rent allocation:

Stabilization funds: applies revenues to immediate needs of economic stabilization and development.

Future-generation funds: collects current revenues for future use.

Sustainable economic development revenue regimes: allocates proceeds for current social, environmental, and developmental purposes such as the construction of hospitals, schools, roads, and infrastructure

He also noted that there are a number of challenges in implementing MRSM which included but not limited to

There isn’t a clearly defined process/road map that has been put in place for the implementation of such a mechanism despite the law being in place.

There is poor inter-ministerial coordination between Ministry of Finance, Ministry of Mines and Ministry of Local Government and housing.

There is no portion of the mineral royalty tax that is paid to central government for the benefit in the extractive communities.

Allocation and use of mineral resources was and has continued to be adhoc rather than being guided by a predetermined mechanism prior and post the 2008 provision for a MRSM

Discussants The first discussant was from local government who informed the participants that many of the mines were resistant to property rates. He went on further to urge communities to put their minds together and push for


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implementation of strict laws and for them to be given authority to manage activities in their communities. However, he was concerned about the ignorance levels among the people of the community. The second discussant was Harrington Kanema from Barrick Gold who emphasized the need for transparency and accountability in knowing what is being raised by the mines and how it is being spent. In addition, Harrington said that the government has the responsibility to do something beneficial to the areas where resources are located. He added that the government should not continue to blame mines for everything going wrong in communities but must take up the responsibility to take care of these communities by re-investing in these towns. The third discussant was Tommy Singongi from Caritas Zambia who stated that there was a major problem on tax collection because of the lack of capacity and political will. Adding that the government should be able to tell the people how it is spending the money earned and collected. Tommy also expressed concern over the lack of community participation in decision making of key issues. Discussion The issue of transparency and accountability was echoed by most of the participants. This issue must be cleared, and only then can Zambia and the various institutions make progress. Another concern was that the biggest problem is that we do not talk about accountability; therefore no one takes responsibility of the actions they make in the community. Another important comment was that there is need to create space for policy engagement and understand/combat the power structures in mining policies and taxation. The main recommendations that the session came up with were as follows:

Community participation should increase in key issues

Involve active government in forums such as the Mining Indaba

Our mindsets with regards to how we analyze and assess the problems faced in our communities needs to change.

CSOs should research adequately on issues before coming up with recommendations i.e. mineral royalties at 20%

4 THIRD DAY OF THE INDABA

The Chairperson Reverend Suzanne Matale welcomed the participants to the third day of the Indaba and encouraged everyone to continue with the same spirit of participation to ensure that the Indaba achieves its objectives. Reverend Matale later asked one volunteer from the audience to open the day with a prayer. This was followed with the introduction of the moderators, and the moderators for day three (3) were; Edmond kangamungazi and Felix Ngosa. On the third day of the Indaba, the morning devotion was given by Rev Chibubi. In his devotion, Reverend Chibubi emphasised the need to create a mineral fund in the country. He further challenged the audience to imagine what Zambia would be like without the mining industry. On this day, there were community voices


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and three breakaway sessions under the sub-theme ‘Natural Resource Taxation’. This was followed by a key presentation from on Mineral Wealth. A recap on the previous day events was given by Domia Phiri.

4.1 COMMUNITY VOICES Luanshya

George Phiri from Luanshya informed the Indaba that when the mines became privatised, many people lost their jobs and many families were broken as husbands went elsewhere to look for jobs. He pointed out that Chinese investors also took agriculture land and started their mining activities, resulting in even more displacement of people from the area. George mentioned that this is currently still a major problem being faced in Luanshya. He further added that the investors have not been doing any CSR in the communities and this has proved to be a problem. He then noted the lack of NGO participation in the communities to help the communities advocate for the Chinese investors to either leave the area or improve the situation of the community. Musele Community Mwangala Lawrence from Musele Community said that there are many engagements that have been done to see how the community can improve. He mentioned that EITA is the main board that has helped the task force in Musele and that in addition to this, sub committees all over the chiefdom have been created to help facilitate better flow of information. He mentioned that Musele faces amongst others the following challenges:

Unemployment

Lack of quality education

Lack of access to secondary education

Poor health facilities

Land struggle (customary and traditional land) Lumwana A community member from Lumwana explained further on some community issues faced. He mentioned that no task force has been created in Lumwana because problems are resolved before they become big issues. It was also alleged that people are trainable and have the capacity to work. The sustainability department has carried out many programs in the Lumwana area but there is need to provide various other services to the community that are not mining related. Furthermore, emphasis on cooperation among stakeholders is needed and not division if problems are to be overcome. Mufulira The Mufulira community member presented many challenges faced in that area. It was mentioned that environmental loss was a major challenge and emphasised the need to decommission certain mining abilities in order to save the environment. Some of the major issues centred on during this community voice were:

Information sharing is cardinal in achieving development in certain areas.


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Environment agreements must be drawn to advance the relationship between the mines and community members.

Government should have bargaining power to implement a win-win situation. In the conclusion, the Mufulira community member suggested that the community make a development project and that there is need to commence planning ahead or beyond mining proceeds. There is need to harmonise international and local laws in order to forge ahead. Chingola Mr Nkandu from Chingola in his community voice informed the Indaba that during the time of the Anglo Americans things were good in the area, and when they left things became bad. There were now issues of water pollution and displacement of families. He also mentioned the case where the community sued KCM and the judgement was in favour of the community, and many of them were compensated. He however mentioned that the challenge faced was the lack of commitment to dialogue. There is no community participation and it is important that the mines learn from previous mistakes to improve the situation.

4.2 ROUND TABLE DISCUSSIONS: NATURAL RESOURCE TAXATION

There were three parallel sessions under this theme i. illicit financial flows and beneficial ownership, ii. Small scale mining, Oil and Gas, and iii. Women and children in mining.

4.2.1 Illicit Financial Flows and Beneficial Ownership

During this breakaway session, a presentation from a representative of the Financial Intelligence Centre explaining the issues around Illicit Financial Flows (IFFs) specifically focussing on the mechanisms of exploitation and the challenges that have arisen was given. The discussions focussed on highlighting how different institutions and stakeholders could make efforts in insuring this practice is minimized in Zambia. Presentation from the Financial Intelligence Centre


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Liya Temba from the Financial Intelligence Centre gave the main presentation for this session. Liya informed the participants that over the pasted 50 years $1trillion of IFFs has been amounting approximately the value of ODA received by Africa during the same period. Studies show that Africa as a whole has accumulated the highest proposition of asset held abroad than any region in the world. In addition to this, about $8.8 billion has been diverted from Zambia to offshore accounts and tax havens over the past 10 years, mainly linked to trade mispricing and copper exports going to the Middle East and China. The meeting was informed that the Financial

Intelligence Centre has warned that legal structures with disclosed beneficial ownership are the main culprits that have been used to corrupt government tendering processes as well as selling the concessions. With regards to ownership, Ms Liya pointed out the difficulty in knowing who the real owners of companies, who controls and benefit from the trust funds and the income it generates are. This is because in recent years multiple countries create complex corporate structures to disguise the ultimate owner and controller of the company which is done through “Nominees”. Commenting on tax, she noted that money was held in opaquely owned legal structures and therefore could not be taxed. Money is usually shifted using fake invoices and loans and companies have been known to be the main movers of money from one country to the other. Apart from companies, she also stated that trusts are the second movers used for corruption purposes, as identified by the World Bank and UN. After provoking the thoughts of the participants by asking them to reflect on whether illegally earned income should come back to Zambia (for instance on the Mukula tree) Liya went on highlight the following challenges:

Foreigners always strip the assets that belong to the people of Zambia

Misrepresentation of prices of goods in Zambia has costed the country revenue that can be used to develop the economy as a whole.

According to the 2013 financial secrecy index, more than 80 jurisdictions now contribute to global financial resistance.

Lack of transparency in many international financial transactions facilitates the tax avoidance and evasion strategies of both individuals and corporations.

The existence of financial secrecy provision makes it harder for tax authorities to obtain their fair share of tax. Hence, it can be stated that the loss of tax revenue mainly occurs when the global financial system enables it through the existence of secrecy jurisdiction and widely condoned practices of corporate tax resistance.


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Ms Liya went on further to discuss round tripping as this was the main means of evading tax in developing countries. It includes sending money out of the country, disguising ones identity to pose as a foreign investor and receiving of tax breaks for foreign investor’s leads to huge gaps in revenue collection in a country. Capital is being hidden from tax authorities by getting the money out of one country and sending it to tax havens. More capital escapes without being taxed as foreigner’s capital flows into the country and in most cases local capital goes untaxed. It was pointed out that it is the duty of the government through development agencies to make sure that they check the manipulation of cash flows in the country. The participants were also informed about the methods of Illicit Financial Flows in Zambia. Falsification of important invoices can happen through:

Over and under invoicing of goods and services

Oldest method of transferring value across borders remains a common practices in Zambia.

Misrepresentation of prices of goods and services which has resulted into additional value between the importer and the exporter.

Transfer pricing usually occurs between entities that belong to the same company or between affiliates of the same parent company. She further informed that the costs and profits are shifted internally and across borders. Imposing high tax does not normally work as countries usually end up losing out. It was also noted that party loans are used to shift profit from a country, and in most cases the loans come from countries that impose no or low tax on interest income where dividends are not taxed at all. Liya (Financial Intelligence Centre) raised important issues with regards to the manipulation of cash flows. Firstly, non-existent liabilities are booked in the financial statements and are used as externalities of funds. Secondly was that funds are transferred to the host country to create an illusion that the same created a liability in the books of a company. As a result funds are immediately transferred out. Thirdly, cash flows are further manipulated to give the impression that the investor has the ability to invest in plant and machinery whose costs are used to claim capital allowance at 100%. She further pointed out that Trans- National companies that have been known to bring expatriates were given key positions in companies, and studies show that these so called expatriates are the main manipulators of finances. In addition, she pointed out that externalization of profits is done through the said expatriates who declare amounts of salaries that are less than the actual amounts. Actual salaries are declared as the main facilitators of the movement of funds. Finally, she spoke on the salaries for expatriates that are paid in accounts off-shore - as such pay roll cost is not properly accounted for. This affects the appropriate amount of tax that should be paid and revenue in the process is understated through understated sales. She added that tax evasion and money laundering go hand-in-hand. Money laundering is the process of concealing the source of money obtained by illegal means. Studies show that it is easy to hide tax evaded income because unlike other criminal proceeds, the money generally comes from a legitimate source initially. The main challenge is that the money only becomes illegal later on when the full amount of tax is not paid. Liya (Financial Intelligence Centre) also noted that the use of hidden company ownership was high on the agenda for the G8 in 2013 in Northern Ireland. The British Prime Minister David Cameron promised to “Break’’ through the walls of corporate secrecy to tackle corruption and tax evasion. Anti-money laundering frameworks provide an


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opportunity to secure transparency by revealing the identity of beneficial owners - the real people who own and legal structures such as companies, trust and foundations. The following recommendations were brought out during this presentation:

There is need to require companies, trusts and foundations to put information about their beneficial owner(s) in the public domain. This information should be readily available for free, in an open data format

Countries should put pressure on the secrecy jurisdictions with which they have relationships to adopt a similar standard

There is need to adequately record who owns and controls legal structures and this information should be made public

Transparency around beneficial ownership of legal structures should have the additional benefit of helping tax authorities to better understand aggressive tax avoidance schemes. Hence the need to amend tax laws and uphold the original intention of those laws.

Trusts and foundations often hold or transfer vast amounts of income. There is need for them to submit accounts which will make it much easier for authorities to monitor their use and make sure it is legitimate.

Discussants

1. Rev Susanne Matele (CCZ) highlighted the need to introduce another initiative to reduce tax evasion, pointing out that the problem with taxation at the global level has been made complex. She asked for increased effort of transparency - transparency is important to fight tax evasion and therefore the system must change since the current system is hurting the people. She also advocated that there should be a register that puts companies accountable so tax is paid in full and accordingly. She also informed participants that her presentation or report can be found on www.ICRTCT.org.

2. Robert from Action Aid was the second discussant in this session. The participants were informed that Action Aid carried out a study on the legal framework. Speaking further on IFFS, it was advised that participants look into how transactions can be traceable and the implementation of investments to bridge the gap between the rich and the poor. He further added that access to information has been a major challenge and questioned how we will ensure the money collected will benefit the citizens. He concluded that for Zambia to overcome all these challenges there is need to promote good governance so that people benefit.

3. Tafadzwa Mabenge from Afrodad stated that African governments must lead the fight against IFFs and should approach IFFs from a global perspective otherwise national and regional initiatives will not yield the best outcome. He added that as Civil Society Organizations, there is need to put government to task to deal with illicit financial flows that have affected revenue collecting processes. Tafadzwa stated that high and increasing illicit financial flows from Africa impact on development, and brought a global compromise in tackling the problem faced by most developing countries. Tackling the issue of illicit financial flows requires concentrated efforts by countries of origin and destination countries.


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Discussion The session agreed that political will was important, and as a country there was need to develop policies that will be able to fight illicit financial flows and ensure politicians are held accountable and are transparent. There is also need to build up small implementations to deal with the issues of illicit financial flows. ZRA was questioned on how far we are in dealing with illicit financial flows and how companies find themselves owning KCM. It was responded that ZRA had no policies as implementers and when items are bought there is always input tax at 16%. It was pointed out that the laws in Zambia are good and the system should be able to recover the money. Therefore, political will plays a fundamental role in decreasing illicit financial flows and there is need to fight for the promotion of good governance. The following suggestions were brought out during the discussion:

There is need for the national governance to monitor and control transfer pricing

There is need to domestically do things ourselves as a country to protect the country as whole from IFFs

There is need for more access to information from ZRA

ZRA should be presented with our concerns, so that they are informed and work on their transparency

The legal framework should be able to bring out the beneficial owners

Efforts need to go into the AU Secretariat developing a road map to implement recommendations of the HLP

Sharing of information by regulators is important as it promotes transparency and accountability.

4.2.2 Small Scale Mining, Oil and Gas

The small scale mining breakaway session was combined with the and the Oil Gas breakaway session. This session discussed the various issues affecting Small Scale Mining and the impact of Mining and Exploration activities in communities. The session was enriched with representation from Government, Mining Companies and community representatives.

Presentation from the Ministry of Mines _ Francis Chibesakunda Mr Francis Chibesakunda from the Ministry of Mines gave the first presentation during this plenary. In his presentation, he noted that oil and gas explorations started around 1988 and was confined to known basins within Luangwa and Zambezi. He pointed out that oil and gas blocks were demarcated and offered to Placid Oil (block ‘A’) and Mobil (blocks ‘B’ and ‘E’) in the Luangwa and Zambezi basins respectively and the work conducted included geological, gravity and seismic survey. From a survey conducted between 1987 and 1988, it was observed that Placid Oil drilled two wildcat holes in block ‘A’, that is’, Chama 1 up to the depth of 3270m and Luangwa 1 up to the depth of 2710m. He stated that the two holes never intercepted any gas or oil and these holes were not conclusive because the target rocks were never reached. He added that the deep section was not drilled. Mr Chibesakunda (Ministry of Mines) pointed out that recent oil discovery in Uganda and Kenya in the rift system brought renewed exploration hope in Zambia. Various oil and gas companies started making inquiries on licensing, for instance, the Ministry of Mines, Energy and Water Development granted twelve exploration companies a total of seventeen petroleum exploration licences for different gas and oil


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blocks. He stated that Tanganyika, Luangwa and Zambezi valley had potential for oil and gas according to research conducted previously.

Commenting on the current operation status, Mr Chibesakunda informed the group that licences were supposed to be renewed after four years, therefore, those which were granted in 2011 were due for renewal. He added that the Ministry of Mines, Energy and Water Development was currently conducting a performance review before the renewals were done. He pointed out that most companies which were granted licences in 2011 had conducted desk studies and a few had started field work. These companies are expected to conduct an Environmental Project Brief (EPB) and Zambia Environmental Management Agency (ZEMA) was mandated to approve the EPB before commencement of work. He further pointed out that for those licenses within the national park and game management areas, Zambia Wildlife Agency (ZAWA) was supposed to authorize entry into these areas and provide guidelines on how operations are supposed to be done. Nonetheless, those with licences in national parks and game management areas were still engaging Zambia Wildlife Agency (ZAWA) in order to have access to those areas for the purpose of conducting an Environmental Project Brief (EPB). Francis (Ministry of Mines) noted that so far only one company (Tower Resources-Rift Petroleum Limited) had managed to conduct an Environmental Project Brief (EPB). Zambia Environmental Management Agency (ZEMA) approved the EPB last year and the company had commenced fieldwork on the blocks approved. Currently, the Geological Survey Department was still monitoring the licences and the government is also in the process of reviewing the Mining Act and stakeholders will be engaged to dialogue during this review.

Presentation from Caritas Solwezi The second presentation came from Richard Banda from Caritas Solwezi. During this presentation, the possibility of extraction of oil and gas in Solwezi was pointed out, a revelation that came out before the 2011 elections. However since that time the issue has not been talked about. It was also pointed out that Caritas Solwezi investigated this activity through the community members who claimed to have seen the pits. However, at the DCs office and other Government departments there was no information despite the declarations that there was oil and gas that could be used to enhance sustainable development in the province. The concern was that the whole issue had gone quiet, and government was not acting on it. Presentation from Reverend Kabala – Council of Churches in Zambia (CCZ) During his presentation, Rev. Kabala from CCZ informed the Indaba that Small Scale Mining is involved in the mining of non-traditional minerals like copper and cobalt but mainly looked at minerals like emeralds, semi-precious minerals and manganese. He pointed out that Small Scale Mining can contribute to the growth of the economy and employment creation but it has been neglected in terms of policies that can benefit and uplift the mining sector to a level where it could be a major player in the economy. Government was challenged to come up with deliberate policies that can address the imbalance of mineral extraction between the local companies and multinational companies. It was further observed that there was need to come up with policies that will empower small scale miners so that they can play a major role in our economy. For instance, putting up deliberate policies for investors who want to come and extract so they partner with the local miners so that more Zambians can be empowered.


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Plenary Discussions

The representative from Ministry of Mines informed the session that it was true that there was oil that was pronounced, but the issue of temperature was also considered before any exploration. With regards to this, the group was further informed that there was a committee that went to North Western province to explore and check for the temperature. The meeting was informed that the environmental project brief was always done according to the law and ZEMA was in charge of this activity to monitor how safe the explorations were before any mining or exploration contract was given to an investor.

The Government was challenged to enhance the monitoring mechanism of how the investors exploit people and misuse the land/natural resources. It is also critical that communities get sensitized on what types of extraction was being done in a particular community and how that exploration may affect their health. Communities were challenged to be proactive and ask the investors that visit their areas without fear of being intimidated.

Some participants wanted to find out what the role of government was in capacity and technological gaps in determining how much oils/gas or minerals the country has. It was further observed that it was difficult to assess how much minerals Zambia has because of the out-dated machineries most mining companies use in measuring the levels of minerals. It was pointed out that some mining companies were still using the machinery which was left by ZCCM which may not be effective in extractions. Therefore, government was challenged to stop relying on outsiders to explore or discover minerals in Zambia. It was emphasised that we need to do our own exploration to ensure it benefits the local people.

It was pointed out that most of the mines in Luapula were owned by Mr Kennedy Sakeni’s family and other small scale miners were mining manganese. However, the people of Luapula were not benefiting from this manganese. It was recommended that civil societies should challenge Government to change their approach to mining so that they include all sectors of mining activities to be embraced in the policies – through putting up deliberate policies that can help the small scale mining sector to grow. Government was challenged to avoid coming up with policies that are mainly biased towards mining of traditional minerals like copper and cobalt. It was added that this calls for large scale mining and huge capital injections which would disadvantaging the local people.

Investing in small scale mining would increase the money circulating in the country and increase competition with multi-national companies. However, the meeting noted the following challenges that affect small scale mining:

Political interference through some of the investors and as result some Chinese investors are not paying tax or contributing towards CSR

Most small scale miners do not use proper mining licenses, some use exploration licenses for mining and this was making the country lose out on revenues through tax

Lack of information to small scale miners for a better understanding of the policies in mining It was pointed out that Zambia needs political will from politicians to change the systems which are currently preventing Zambians from fully benefiting from the mining industry. Further to this, MPs need to be


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encouraged to attend forums like the ZAMI as it was a good platform to influence policies. It was further recommended that government put up stringent measures to ensure that investors were not using exploration licenses as mining licenses. Government was also advised to be more transparent in giving out licenses to small scale miners/local people and companies.

4.2.3 Women Children and Mining

This session was moderated by Susan Kiramania from TIZ. During this plenary session, the challenges and risks the mining industry have posed on women and children were brought out and some possible solutions were provided. Presentation from Action Aid Mwiya Mwandawande a representative from Action Aid gave the main presentation that was a research that was carried out in Kalumbila, Chingola and Mufulira on the impacts of extractive industries on women. The key findings of the research were that very few organizations have projects related to women in extractive industries. There is also the lack of policy, legal options and practices for reducing impacts of extractive industries on women. Further to this, women are not involved in formal employment and there are social cultural impacts such as increased Gender Based Violence, high dropout rates of children from schools, increased spread of HIV/AIDS, women displacement from farming lands and food insecurity. It was recommended that government come up with policy and regulation on the impact of the extractive industries on women, and these women should be prepared before displacement or relocation Discussants Maureen Zulu from NGOCC was the first discussant in this session. She stated that women and children form the majority of the country’s population and were the most poor. The majority of risks that come out of extractive industries fall on women such as sick husbands, loss of jobs and water pollution. She made the following suggestions:

Enforce prior human rights and environmental impact assessment and include Gender aspects.

Provision of information to communities on what they are doing and what is happening by government and mining companies.

Ensure more transparency of the Mines and Government

Review of mine and minerals bill.

Community participation in all issues within the community.

Ruth Kapitango from Lumwana community mentioned that the main challenge faced in the community was employment and this was because most of the women in that area lacked the necessary skills and literacy to get employed by the mines. However, she mentioned that the mine has come up with various incentives such as adult literacy and skills training to empower the women in Lumwana community.


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Save the Children in their presentation highlighted the need to promote child rights principles and child consultation where the children can be asked about the problems they are facing and solutions generated. Their recommendations were that the corporate world should take responsibility for the activities they are doing in communities. They further emphasised the need for a child’s protection guide. Government should build a child rights system and there should be transparency within the mines and government. Adess Samalesu from Barrick Gold mentioned that the mines have created various skills and training programs for women, and that there are also education bursary systems for young girls who are unable to pay for school. There is also a system where the women who are in early marriages are grabbed from those marriages and taken back to school. In a nutshell, the mine is doing many activities to help the women and children. Melanie Chipoda from LARNRA in her discussion disclosed that the main challenges faced by women in Zimbabwe was that most companies prefer to employ men than women, there was lack of women facilities in companies and most training systems are offered to men. She recommended that a gender impact assessment be done, a gender policy created and companies must look at the consequences of their actions on women. Discussion The final recommendations that were made by participants during this session were that:

Gender policies should begin at home;

Affirmative action should be taken to involve women in all aspects and use the principle of equity;

Governments companies and communities must work together to overcome these issues; and

Community participation is key to successful development.

4.3 MINERAL WEALTH PRESENTATION

Dr Claude gave a presentation on mineral wealth. In his presentation, he mentioned that there is need to turn our minerals into wealth. There is need to have a tax policy in place that is clear and responsive. In addition to this, administrative capacity and extractive capacity, the ability to handle technical issues effectively and the ability to extract from citizens through taxes and other charges were important. He also mentioned that there is need to have a state that is capable of collecting taxes, and that the state should be able to raise enough finances to deal with development issues as taxation is an administrative activity. Another issue brought out by Dr. Claude was with regards to the way in which CSR is being mishandled. The mines should not be left with that task as they are here for business and are not charity organisations. He added that conflict comes in when both mining companies and government are not clear with the tax regime. It is important to have a tax regime that is clear and predictable. Speaking further on the issue of tax, he mentioned that in Zambia there is no tax on heavy machinery as government fears losing investors. In addition, there are a number of taxes that a state can use to raise revenue such as property tax, corporate tax, import and export tax and many others.


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In his conclusion, Dr Kabemba stated that Zambia had not yet broken away from the colonial type of rule because we are not in control of the system that is in charge of controlling tax. He further mentioned that there is need to take control of our minerals, address capacity building and the constraints of asymmetry of information. He emphasised the need for regulation, predictable laws and good administration in extractive governance and added that the government should take responsibility for the welfare of the communities and not mining companies.

4.4 CAPACITY BUILDING SESSION Edward Lange from SARW led the capacity building session and highlighted the following key issues:

The need to be aware of the various issues when doing advocacy

The need to identify institutions that are passionate about the issues we are advocating for

The need for authorities to become relevant

The need and ability for media to follow up stories at all times

He mentioned that in most cases both the media and CSOs were not clear about what they are doing or saying - the CSOs are not coming out clearly with what they are trying to achieve while the media is not doing adequate research on the stories they present. Edward further stated that there was need for media institutions to be very partial and nonbiased in their reporting to ensure that issues affecting the citizens are well covered and accurately reported. He also stated that the media need to engage to more with the communities in order to report accurately. Edward also challenged CSOs, Mining Companies and other stakeholders to do a proper research on what spaces are available in the media and come up with strategies on how to engage with the media and how to use such spaces to ensure that there is accurate dissemination of information to the citizens. He added that it was through media engagements that our advocacy issues could be addressed as CSOs mining companies and other stakeholders. Discussions There was a concern from participants that, the biggest challenge with the media at present was that they are spoiled with allowances, it was emphasised that whenever a CSO invites the media to cover an event or getting the stories, the media demands to be paid allowances and some organisation/institutions could not afford to pay them such allowances. With regards to this, CSOs, mining companies and other stakeholders were challenged to be very relevant to the media without enticing them any incentives.

4.5 CLOSING REMARKS

The chairperson of the Indaba Rev. Matale thanked all the participants for coming, she also said that it had been a wonderful space and an awesome platform to discuss the various issues faced in our communities. She also mentioned that it was not only mining companies that should take the blame but local investors too. Finally, she said there is need to overcome corruption as it is leading the country to be in a weak state.


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5 FOURTH DAY OF THE INDABA

The last day of the Mining Indaba was mainly dedicated to allowing the participants to review the draft declaration submitted by the declaration committee. The Indaba also had a peaceful march-past to the Cabinet Office and submitted the Final Declaration (see APPENDIX) to the Permanent Secretary.

5.1 MORNING DEVOTION

The day began with a morning devotion given by Rev. George Chibubi from EFZ. He stated that Zambia needs a code of conduct and clear policies and guidelines on who should be given mining license and land ownership. He further added that currently, a Minister can own as many mining licenses as possible because there was no law or policy that prohibits a minister to own more than a certain number of licenses or even land. He informed the Indaba that political patronage was still a major issue in Zambia, hence politicians own more resources than the ordinary citizens because of the influence they have. He further challenged participants to accelerate the theory of change for development and move to a sustainable inclusive type of development. He also challenged participants and Zambians at large to participate in the development agendas, pointing out that being a Christian nation was not enough. People should not do nothing about the investors who are taking advantage of our resources and even destroying our land in the name of Christian nation and faith, adding that faith without work was dead. He also stated that Zambia should be governed on principles of morality, but it was important to clearly define these moral positions so that citizens are not misled. Discussion There was a concern from participants over clearly understanding what each indaba has achieved so to make it easy for the country to focus their efforts to specific issues raised each year. An appeal was made to the organisers to ensure the follow up reports are shared among stakeholders. Participants however appreciated the organisers of the indaba for bringing different stakeholders from different backgrounds to discuss issues around the mining industry. It was further stated that this was a great opportunity for the mining companies to reflect on some of the grey areas identified so that they could improvement.


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5.2. REVIEW OF DRAFT DECLARATION

The declaration was led by the Edmond Kangamungazi from Caritas Zambia. The draft declaration was presented to the participants where participants were given an opportunity to make any comments or suggestions before it was finalized. Edmond assured the Indaba that once the session was concluded, the declaration from the 2015 ZAMI would be declared final, and no changes will be made to it.

5.3 VOTE OF THANKS

The vote of thanks was given by Rev. Fr. Fred Sichinga. He thanked the chairperson of the Indaba, the organisers and all the stakeholders for their effective contributions during the Indaba. He challenged all the stakeholders to design programmes that would integrate the issues that were identified during the indaba.

5.4 SUBMISSION OF DECLARATION AND MARCH PAST

The participants assembled and marched peacefully for a distance of about 1 kilometre to the Cabinet Office. The Indaba Chairperson Rev. Matale led the presentation and submission of the Declaration to the Permanent Secretary highlighting the issue of partnership in governance, communities, diversification of resources and the responsibility of the mines amongst others. She insisted that the Declaration be forwarded to the Secretary to the Cabinet in the coming week. The Permanent Secretary thanked the Indaba for the peaceful march and was gratified everyone was working together. He assured the participants that the concerns of the people were the concerns of government. He added that democracy and governance had no shortcuts and the Indaba should be rest assured that the recommendations submitted today will be forwarded through the system.


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APPENDIX I - Declaration

THE 4th ZAMBIA ALTERNATIVE MINING INDABA “Our Natural Resources, Our future, Putting Local Communities First”

Ndola, Copperbelt 23rd - 26th June 2015

Declaration We, Civil Society Organisations, Faith Based Organisations, Academia and Development Partners that met for the Zambia Alternative Mining Indaba (ZAMI) held at Fatmols Lodge in Ndola, Copperbelt from the 23rd to the 26th of June 2015 under the theme, “Our Natural Resources, Our Future, Putting Local Communities First,” deliberated on different issues of the Zambian extractive industries. We recognize that there is potential for the country’s mineral resources to be leveraged for economic transformation and broad based economic development. However, we note with dismay that Zambians continue to experience debilitating poverty. Consequent to our deliberations, we reached a shared understanding and adopted the resolutions below; Illicit Financial Flows (IFF’s) and Beneficiary Ownership The Indaba noted with concern that Zambia is estimated to have lost US$ 8.8 billion in tax revenue between 2002 and 2012 due to illicit financial flows. Some of the main ways in which this manifests in Zambia, is through transfer pricing, related party loans, round tripping and the non-implementation of the arms-length principle. We also noted with concern that multinational enterprises use complex tax planning methods which lead to shifting of taxable profits to other jurisdictions with low tax rates or no taxes at all, prejudicing Zambia of the resources for socio-economic development.


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We further noted that despite Zambia’s adoption of the Arm’s Length Principle in 1999, the government is still grappling with transfer-mispricing, because of the existence of anonymous shell companies which make it extremely difficult to identify the beneficial owners of such companies. Therefore:

i. We call upon the Zambian government to strengthen the capacity of the Zambia Revenue Authority, the Financial Intelligence Centre and other relevant bodies to track, monitor and put in place measures to stop illicit financial flows

ii. We call on the Zambian government to encourage the AU to expeditiously develop a roadmap to implement the High Level Panel report on IFF’s

iii. We call upon the government to review and terminate tax incentives given to mining companies, especially those proven to engage in tax dodging tactics

iv. We call on government to ensure that financial institutions and designated non-financial institutions conduct proper customer due diligence

v. We call upon the government to embrace automatic exchange of information among governments and to facilitate improved sharing of information among mining regulators.

vi. We call upon the government to put in place a policy directive that promotes disclosure of beneficial ownership. This would ensure that the core owners who control accounts of companies, trusts and foundations of companies exploiting our natural resources are publicly known vii. We call on the government to expedite the development and tabling of the Access to Information Bill to facilitate the tackling of illicit financial flows Free, Prior and Informed Consent (FPIC) The Indaba notes with concern continued human rights violations in natural resource rich communities through displacements, poor compensation, land alienation and lack of consultation. We demand that:

i. The government and private investors obtain and respect the Free, Prior and Informed Consent of local people for decisions that may require displacement of people to pave way for mining projects.

ii. The negotiations of lasting agreements on the use of resources have to recognize the rights of local communities and the FPIC principle must be embedded in the policy and legal frameworks.

iii. Government to develop specific policies that address involuntary displacement Environment, Climate Change, Forestry, and Mine Workers’ Rights We observe the high level of environmental degradation emanating from mining sector activities and the weak enforcement of rules and regulations. We also note with concern the deplorable working conditions of casual mine workers. We are concerned that some mining companies do not comply with the environmental laws and regulations. Deforestation and forest degradation are areas that the government urgently needs to look into as these are greatly contributing to climate change. We recommend that:

i. Regulatory authorities ensure that all mining companies are compelled to contribute to the Environmental Protection Fund, and that the Fund be transparently used to mitigate environmental degradation.


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ii. Mining companies facilitate and fund independent research on cumulative impacts of pollution on mine-workers and surrounding communities

iii. Government reforms the mining policy and extractive industries monitoring tools such as the environmental impact assessment to ensure that they address impacts of extractive industries especially on women and children

iv. Government enforces assessment reports in ecologically sensitive areas to ensure a balance between mining exploration and forest conservation

v. The government should provide adequate financial and technical resources to the Ministry of Mines, Energy and Water Development to enable it to enforce legislation on occupational health and safety of mine-workers and to conduct regular monitoring visits to mine-sites.

vi. The government and other stakeholders take deliberate steps to come up with reforestation and forestation programmes and assess local community energy needs


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Mining Revenue Management, Transparency and Accountability We note with concern that Zambia does not have a mineral resource account, where the proceeds from the natural resources sector are deposited. The allocation and use of mineral resources continues to be ad hoc rather than being guided by a predetermined mechanism. The Indaba further notes the poor inter-ministerial coordination between Ministry of Finance, Ministry of Mines and Ministry of Local Government and Housing. We also note the need for improved transparency and accountability through the enactment of the EITI bill. Therefore,

i. We encourage the government to implement the Mineral Revenue Sharing Mechanism (MRSM) as stated in the 2008 Mines and Minerals Act.

ii. The government should develop operational guidelines for the decentralisation of mineral revenue sharing

iii. We challenge the government to enhance the capacity of institutions that independently verify mining production figures and mining operations to ensure that all citizens have access to comprehensive geological data

iv. We call upon government to demonstrate its accountability in the utilisation of mineral revenues through public reporting systems

v. We ask the government to define and clarify the long term fiscal vision for the mining sector

vi. We call upon the government to establish and operationalize a Sovereign Wealth Fund as mentioned in the 2015 national budget

vii. We urge government to consult all stakeholders in the development of a mining tax regime that is stable, certain and predictable Sustainable Development and Corporate Social Responsibility (CSR) We express our concern about the lack of a deliberate plan to ensure that proceeds from mining are prudently used to advance human development, especially in mining communities. The government has seemingly abandoned its core responsibility to provide basic social services to its citizenry. Communities are now demanding for basic services and development projects from mining companies through corporate social responsibility (CSR) projects. We have also observed the minimal participation of the communities in the conceptualisation and identification of CSR projects by the mining companies, which undermines sustainability and ownership. Therefore,

i. We urge the government to take lead in providing basic social services in mining communities instead of surrendering their core responsibility to the mining companies through CSR.

ii. We urge the mining companies to involve communities in conceptualisation, identification and implementation of CSR projects iii. We call for mining companies to collaborate with local councils to align their CSR plans with district development plans

iv. We urge mining companies to disclose their CSR budgets and beneficiaries of the same Artisanal Small Scale Mining, Oil and Gas


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The Indaba observed that there is poor monitoring of Artisanal and Small-scale Mining (ASM). ASMs also suffer from lack of skills, finance, marketing and technology. As a result, Zambia has failed to optimise ASM in line with best practice. We further note that government is in the process of reviewing the Petroleum and Gas and the Mines and Minerals Development Act. It is also noted that there are huge capacity and technological gaps resulting in the absence of proper and accurate information on potential deposits of oil and gas or base minerals in Zambia. Therefore:

i. We demand for stakeholders to be involved in the review of the Petroleum and Gas and the Mines and Mineral Development Acts.

ii. We call upon the government to strengthen institutions that should monitor the ASMs

iii. The Government should come up with deliberate policies that will facilitate the empowerment of artisanal and small-scale miners to play a major role in the growth of the Zambian economy. These policies should also help to regulate small scale mining e.g. through putting in place regulations to compel foreign investors to partner with the local Zambian miners

iv. Government must improve the capacity of the Ministry of Mines, Energy and Water Development (MMEWD) by creating an adequately staffed and resourced exploration department that will carry out exploration activities of oil, gas and base metals without leaving it to non-Zambian firms or institutions.

v. We ask Government to be more transparent in the process of issuing mining, oil and gas exploration licenses through engaging a wide array of stakeholders The Extractive Industry, Women and Children We note with concern that the costs of mining, disproportionately fall on women and children, while the benefits mostly accrue to men. Mining mostly disturbs the social context of communities, and this leads to socio-cultural impacts such as increased gender based violence, increased spread of HIV&AIDS, displacement of women from farming lands and food insecurity. There are increased incidences of child labour in the extractive industry, leading to high school dropout rates. Therefore;

i. We demand that government set minimum standards for housing to be provided by mining firms to mitigate the impact of mining on women and children;

ii. We demand that mining companies conduct social impact assessments to address the impact of mining on men, women and children

iii. We encourage CSOs to have programmes that address the impacts of mining activities on women and children


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Value Addition in the Extractive Industries The Indaba observed that policies and legislation need to be strengthened to encourage value addition, for increased employment opportunities and revenues from the natural resources exploitation and development. We also noted that the Zambian government is party to the Africa Mining Vision which provides for down-stream value addition. Therefore;

i. We implore the government to develop policies and incentives that would encourage extractive industries to focus on value addition

ii. We call upon government to set up mineral development funds (from mineral revenues), which can be invested into appropriate knowledge-creating capacities including; human resources and research infrastructure and innovation systems to support value addition We further continue our quest for social and economic justice in the management of our natural resources to benefit all Zambians. Signed Chairperson of Indaba


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APPENDIX 2- FINANCIAL CONTRIBUTIONS

JCP / NCA South Africa27 %

Caritas Zambia19 %

Caritas Solwezi1 %

OXFAM11 %

Action Aid10 %

CCZ4 %

CTPD5 %

Diakonia6 %

PWYP4 %

SARW4 %

CRS 7 %

JCTR2 %

JCP / NCA South Africa Caritas Zambia Caritas Solwezi OXFAMAction Aid CCZ CTPD DiakoniaPWYP SARW CRS JCTR

APPENDIX 3– Attendance List of Registered Participants

NAME SEX ORGANISATION

1 Abraham Chikasa M CCZ

2 Adess Hambuba F Barrick Lumwana

3 Alex Hanyuma M ZIEM

4 Alex Mutale M SARW

5 Alexander Caramento M SAIPAR

6 Alick Siankuku M CTDD

7 Anderson Mutale M ACTION AID

8 Andrew Chisanga M SARW

9 Anita Antonio F WE HAVE FAITH

10 Banda Francis M PWYP Copperbelt

11 Betty Lombanya F Kalumbila Worker

12 Beyongo Mukete M ANU

13 Boniface C. Mumba M CES

14 Bruce Lewis M Kansanshi Mine

15 Carol Kiangura F PWYP

16 Charity Chizola F ACTION AID

17 Charles K. Mulila F PWYP Copperbelt

18 Chewe Stephen M CTN

19 Chicheli Martin M Community

20 Chikwanda Chituta F Office of Auditor General

21 Chilufya Victor M DELTHA

22 Chimfwembe Mweenee M FODEP

23 Chinchien Matin M CCZ

24 Chishala Musonda F Zambia Daily Mail

25 Chisomo J. Phiri M PWYP

26 Christabel Miti F ZAMTEL College

27 Cynthia Phiri F Post Newspaper

28 Cynthia Phiri Post Newspaper

29 Danny Ng'andu M SACCORD

30 David M. Bukula M SARW

31 Davies Judge F OXFAM

32 Domia Phiri F Caritas Zambia

33 Dyless Mbewe F CBE

34 E.H. Zulu M Chibuluma Mines Plc

35 Edmond Kangamugazi M Caritas Zambia

36 Edona Kabala Litana F CBU

37 Edward Kiangura M SHEKINAH ENG (Z)

38 EH M

39 Emmanuel Nkhata M CCZ

40 Ernest Mwenya M Save the Children

41 Eunice Mitima F MLSS

42 Evans Chisenga Lumbwe M Kansansli

43 Fatima Sow F Caritas Zambia

44 Felix Ngosa M JCP

45 Francis Chibesakunda M MINISTRY Of MINES

46 Garth Lappeman M KML

47 Gehane Ntaimo M Kansanshi Mine

48 George Palo Chibubi M EFZ

49 George Phiri M SARW

50 Gerald Mutelo M PWYP

51 Gilbert Makore M PWYP


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52 Harrington Kanema M Barrick Lumwana

53 Heleme Blaszkiewicz F Zyon Univesity

54 Henry Mulihna M CTPD

55 Ian Milimo M UNDP

56 Ilokole Joseph M JCP

57 Ilunga Redson M VNRC

58 Ilunga Robson M Musele Nkisu Task Force

59 Inutu M. Mamili F Northrise University

60 Jabbes Mumba M NATAC

61 James Chansa M NUMAM

62 Jana Wegmann F NGOCC

63 Janet Chamwaza F Kansansli Farmer

64 Jarbes Mumba M NATAC

65 Kaaziya Grace F Sinazongwe District Council

66 Kalungu Sampa M TIZ

67 Kangombe K. M Community

68 Kayumba Selesty M Solwezi Community

69 Kennad Ndhlovu M CCZ

70 Kennedy Mambwe M Wusakile Com

71 Kennedy Mwelwa M Caritas

72 Keshi Chisamba M ZANABRA

73 Khazikie Sakala M CARITAS ZAMBIA

74 Kingsley Kapande M SARW

75 L Temfwe M J. CENTRE

76 Logan Shemena M Barrick Lumwana

77 Lonis M M

78 Luiza Nyondo M Auditor General

79 Luka Swedi M Auditor General

80 Lutangu Silishebo M CTDD

81 M. V. Mwale F Chibuluma Mines Plc

82 M.C. Mulongo M DMMU

83 Maggie Kona F Kalumbila Mine Worker

84 Makungu Collins M Community

85 Makungu Collins M CCZ

86 Maria Phiri F NIPA

87 Marriot Ngangu F CSO-EITI FORUM

88 Mary C. Banda F SARW

89 Mary Chavula F Save the Children

90 Mashimango J. M Musele Nkisu Task Force

91 Maureen Zulu F NGOCC

92 Maxwell Chibanga M ZEMA

93 Melanie Chiponda F CCDT

94 Melanie Chiponda M CCDT

95 Michelo Obrey M OTPD

96 Mirriam Harmon F KML

97 Moreblessings Chidaushe F NCA SOUTH AFRICA

98 Mpema Mwanza F ZLA

99 Mtwalo Msoni M PWYP


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100 Mukupa Stephan M NUMAM

101 Mulumbi Luckson M YAD/DIAKONIA

102 Musamba Mubanga F Caritas Zambia

103 Musolokoto Jonas M CSPR

104 Mwanangombe Lawrence M Musele Nkisu Task Force

105 Mwape Kayula M TIZ

106 Mwenya Steven M ZANABRA

107 Mwila Musonda F ACTION AID

108 Mwilah Chaloba M CEJ

109 Mwiya Mwandwande M ACTION AID

110 Namamku S. Sianga M ACTION AID

111 Namatama Wakunguma F Caritas Zambia

112 Natasha Nachali F Northrise University

113 Ndashe Innocent M JCTR

114 Njolomba G. M Musele Nkisu Task Force

115 Nkandu Clavel M ACTION AID

116 Nkandu Clavel M FGG/AAZ

118 Nkula Edward Goma M Diakonia

119 Payne Mano M SARW

120 Petson Kabala M CCZ/PWYP

121 Philip Kazhingu M Ndola Ministries Fellowship

122 Pyele Joseph M Barrick Lumwana

123 Rev. Fr. Teddy Sicihinga M CCZ

124 Richard Banda M Caritas Solwezi

125 Richard Banda M Caritas Solwezi

126 Rinniah Situmbeko F Office of Auditor General

127 Rita Kesselring F University of Basel

128 Robert Lugologa M AAZ

129 Rogers Kalero M DAILY NATION

130 Ruth Kaepitango F Barrick Lumwana

131 Sadine Mantson F GIZ

132 Simbeze Dauty M CHIB Mine

133 Siyasa Mwenze M Solwezi Community

134 Stephen Mumbu M

135 Susan Kirimaine F TIZ

136 Tafadazwa Mabenge F AFRODAD

137 Teddy Sichinga M CCZ

138 Tigawa Chileshe M CTPD

139 Tommy Singongu M Caritas Zambia

140 Vincent Lengwe M CTDP

141 Yewa Kumwenda M MUZ

142 Yvonne Simwing F MLLS

ZAMBIA ALTERNATIVE MINING INDABA REPORT

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