COMMUNIQUE SEVENTH (7 th) ZAMBIA ALTERNATIVE MINING INDABA, 2018

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1 COMMUNIQUE SEVENTH (7 th) ZAMBIA ALTERNATIVE MINING INDABA, 2018 Preamble Representatives of more than 170 delegates from the Church, Civil Society Organisations, mine host communities, large-scale mining companies, small scale miners and government representatives gathered from 19 to 21 June 2018 in Lusaka for the 7 th Zambia Alternative Mining Indaba (ZAMI) under the theme OUR NATURAL RESOURCES OUR FUTURE! EXTRACTION FOR ALL, PUTTING LOCAL COMMUNITIES FIRST. The purpose of the ZAMI is to create a space for policy dialogue where stakeholders in the extractive industries sector can deliberate and propose legislative and policy recommendation aimed at enhancing Zambia s benefit from natural resources extraction. The ZAMI centres its discussions on deriving solutions to the challenges faced by the communities affected by extractive industries. It is complemented by people s spaces in the form of provincial and district level mining forums, two of which took place in 2018 in North Western and Copperbelt Provinces. The 2018 ZAMI begins by expressing our condolences and standing in solidarity with the families of the victims and survivors of the accident that occurred yesterday on 20 June 2018 at the infamous Black Mountain site in Kitwe. We expect and demand to see measures by 1

2 Government to adequately handle the challenges associated with the Black Mountain and similar sites with regards to health, safety, environmental protection - safeguarding the rights and benefits of host communities and preservation of the rule of law. Critical lessons will have to be obtained from the unfortunate event and put on record. We also express our unwavering support and solidarity with all other people who are victims of economic, environmental and social injustices surrounding the mining activities that tend to place profit first before the people. RECOMMENDATIONS Cognizant that Zambia remains richly-endowed with vast mineral resources, yet 54.4% of its citizens currently live in poverty and having had fruitful deliberations, the following are the recommendations emanating from the ZAMI discussions on how we believe Zambia can better harness the full benefits of its vast mineral sector for inclusive growth and socio-economic development. Zambia s Legal and Policy framework on Mining While we recognize some improvements brought about by the Mines and Minerals Act No 11 of 2015, we note with concern that there exist several gaps in the legal framework that hinder transparency, accountability and the overall benefit of Zambian citizens from the proceeds of the extractives industry. Some of the identified challenges evident in both the Mineral Resources Development Policy of 2013 and the Act include the failure to balance investment promotion and the protection of the rights and interests of citizens. Therefore, we recommend that: The Government revises the 2013 Mineral Resources Development Policy as it is outdated and in urgent need of revision to consider recent developments in the mining sector in Zambia and the need to domesticate the Africa Mining Vision The Government and mining companies have ongoing and open negotiations and not seasonal consultations with the host communities and civil society on the progress, impacts and declared resources extracted from their land and governance issues in the extractive sector; The Government should give a position on and make public all Development Agreements (DAs) and state any clauses of the DAs that are still applicable The Government should conduct a comprehensive audit of our mineral wealth in the country and know its mineral worth The Government should conduct a survey to know the conditions that people are working in underground in large scale, small scale and artisanal mining sites That statutory bodies such as the Zambia Revenue Authority (ZRA), the Financial Intelligence Centre (FIC), the Anti-Corruption Commission (ACC) and similar bodies and agencies should be allowed to operate independently without political or other forms of interferences. That government takes into account safety with regard youth empowerment in mines Enhanced Transparency and accountability in the awarding of mining sector permits, licenses and contracts Transparency and accountability is important, however there remain corruption risks at the start of the mining value chain when licences, permits and contracts are awarded, which should be 2

3 addressed because they compromise the rest of the mining value chain. We therefore recommend the following: The government needs to revise the 2015 Mines and Minerals Act so that: o That the discretionary powers of the Minister of Mines and Minerals Development are reduced in terms of issuing of licenses and permits, appointment of license committee members, making final decision of license application and disregarding the decision of the license committee. o Clear guidelines for meaningful consultation prior to awarding of exploration and mining licenses with the community and the local chiefs to allow for active participation of the communities. o There should be adequate staffing and supervision at the mining cadastre for the department to operate effectively. o Immunity should be lifted from government officials and officers at the cadastre so that if there are any corrupt public officials, they cannot easily avoid scrutiny. o Make the final EIA reports public and accessible to the local communities so that they can hold duty bearers and mining companies accountable. Fair and just tax system We Affirm that transparent, effective and progressive taxation is critical for Zambia to mobilise resources to realise development aspirations and tackle poverty and inequality. We note with concern that the Governments has been over-dependent on mining and foreign direct investment as the path to development at the expense of other people-centred alternatives; we therefore: Encourage that the government promotes strategies that ensure that the interest of the citizens is not compromised, encourages diversification and promotes local content. Recommend that Government to put in place a stable and consistent tax system in the mining sector to guarantee that extraction effectively contributes to state revenues for development. Recommend that Government must continue to review tax incentives and treaties to include cost benefit analysis of current tax incentives such as the capital allowance deductions which contribute to the low Marginal Effective Tax Rate in the mining sector. Recommend for greater transparency and accountability laws, policies and systems in order to tackle secrecy, structures and investments that facilitate tax avoidance and evasion; Recommend that the government quickens the establishment of an inclusive Mining Industry Reform Tax Team to determine optimal tax rates for the sector and other pertinent issues, as announced by the Ministry of Mines in November 2017 and affirmed during his official opening of the ZAMI 2018 by the Honourable Minister of Mines and Minerals Development. Recommend that the Government introduces and implement a revenue sharing mechanism in the mining sector that allocates 10% of taxes paid by mining firms, to go directly to mining host communities. Recommend that corporations tax responsibilities and compliance be increased and not override their corporate social responsibility; 3

4 Water and Extractives Water is a key input in the extractives industries value chain; and there is growing public concern about the condition of water in communities where the mining companies are operating in. Mining companies have continued to affect fresh water through water pollution from discharged mine effluent and seepage from tailings and waste rock impoundments without regard to the communities. We therefore: Recommend independent and meaningful Environmental and Social Impact Assessment, Strategic Impact Assessment, Health Risk Assessment, Social Impact Assessment, and Environmental Management Programmes; Recommend policies and laws be strengthened for redressing environmental impacts of mining activities as well as compensation issues for communities affected by mining activities Recommend that the Government strengthens institutional framework to deliver quality services particularly for rural WASH Call on government to work with the communities to pursue alternative development paths beyond mining; Recommend that our governments show leadership and be more transparent and accountable with regards to protecting the mineral resources and human rights of their people such as the human rights violations cited by community members at Jifumpa mine; Commit to continue as Civil Society to ongoing research and advocacy with regard to the impacts of mining tax policies and human rights on men, women and vulnerable groups. Gender and Extractives We note with deep concern that the discontent voices from the local mining communities especially women and girls have increased over the years, emanating from largely gender blind policies and laws, limited benefits and opportunities for women, marginalisation and discrimination of women in the EI sector and the negative environmental and social impacts of mining on women and girls. We therefore recommend: A review of the Mineral Resources Development Policy to include stronger provisions for gender equality in terms of employment opportunities for women in the EI sector, meaningful involvement in decision making, especially in matters of environmental and social safeguards, land and access to other natural resources and other issue indicated above. Creation of an accessible inventory of existing programs and opportunities for women empowerment that can support women in mining to facilitate access by those who need them. Enhancement of the country s information and knowledge about women involvement in mining by strengthening baseline information and data as a basis for planning and programme implementation. Creation of targeted programs and funding for women and girls in mining. That gender is mainstreamed in all mining and other policies. Implore mining companies to develop policies that effectively protect the rights and safety of women in mining. 4

5 Land ownership and compensation We are dismayed at the status quo regarding the human rights violation of mining companies and the inaction of Government on the meagre land compensation and resettlement packages being given to communities affected by mining and foreign investments in the country. We are also concerned with the slow pace of Government s development of the Land Policy and development of the Act which has exacerbated land ownership disputes. As such: Recommend that the government and mining company should have the responsibility to respect the decision of the communities underpinned by concept of Free Prior Informed Consent, the government having the responsibility to protect and stand by community decision and the community to have a full access to duty bears remedy; Recommend that government urgently develops a legal framework and regulations on resettlement and compensation. Implore government to ensure that the Laws give preferential treatment in the acquisition of land by Zambian nationals. Recommend for an immediate implementation of the comprehensive land audit. Implore Government to provide security of land tenure for occupiers and users of customary land. Call on government to amend and improve the existing National Resettlement Policy of 2015 by enhancing the role and involvement of local government and better clarify institutional collaboration and monitoring of resettlement. Call on communities affected by mining to unite in provincial and district to fight for social and economic justice in the exploitation of mineral and other natural resources in their communities. Recommend that the Chiefs powers over customary land be capped to a specific threshold o Recommend that there should be a halt on issuing of new licenses until the backlog of unprocessed licenses is dealt with 5

6 Assessing the political economy drivers of IFFs and corruption and the nexus between corruption and domestic resource mobilisation in Zambia We note that Illicit Financial Flows (IFFs) particularly in the mining sector have increasing become a hindrance to Zambia s development agenda. Research reports have revealed that Zambia is losing approximately US$3 billion annually. The problem is not only massive and illegal, but also deters human development and economic growth. The government needs to develop a new practical approach and set up punitive measures that will discourage all forms of IFFs. The following are the recommendations; The Financial Intelligence Centre which is one of the designated agencies tasked to investigate, track and stop Illicit Financial Flows much be adequately financed, protected and empowered to investigate and prosecute lawbreakers. The government needs to also strengthen other agencies through increased skilled human capital and financial resources to complement each other in the fight against IFFs in Zambia The government needs to expedite the enactment of the access to information bill in order to curb drivers of corruption and IFFs CSOs should play a key role in taxpayer education and accountability. This will enable tax compliance payments and increase domestic resource mobilisation. We recommend that civil society organisations take advantage of opportunities to partner with the Zambia Revenue Authority on tax sensitization. The government tax forces assigned to conduct forensic audits on mining companies should be autonomous and include CSOs and Faith Based Organisations and the results of the audit be made public. 6

7 We recommend that the government should show political will in the protection of civic space so that people are able to voice out their concerns on extractive governance issues. Forest exploitation in Zambia We are concerned with the deliberate and systematic marginalisation of poor communities and the people in the decision-making and general governance of the forestry sector and its lack of transparency and accountability throughout the value chain; we therefore: Recommend transparency and accountability in the auctioning and sale of Mukula trees in the country. This should also include the disclosure of the beneficial ownership of beneficiaries of the companies that are buying and selling the Mukula trees. We call for Zambians to have a sense of Ownership in management of the forest in the country. Recommend that the government through the Forestry Act 2015 should quicken in developing and releasing the regulations that should help establish local structures and give the detailed process and requirements for these Community Based Natural Resource Management structures as well as details about what can be done and what can't be done in a forest. Implore government to regulate charcoal in Zambia to protect the forest product value. Climate change is a reality and we as society need to find alternative means of energy other than destroying our forest. Uranium Exploration, Extraction and Nuclear Developments We note with concern that there remains very little information on uranium extraction among citizens, particularly host communities. Additionally, government s plans on nuclear development are not clear. Consultations with citizens on the issue are not deliberate and not undertaken before decisions are made. Whereas nuclear energy has benefits if harnessed properly, the extraction of radioactive material, i.e. Uranium, their enrichment pose significant risks for public health and safety. As such we: Recommend that Government makes public its nuclear plans and also make available the Environmental Impact Assessments and ensure that have exhaust public consultations Implore the government to accelerate the policy formulation and strengthens the legal framework and regulatory capacity. Recommend that government conduct technical study involving communities, CSOs and other interested stakeholders to ascertain the current situation on uranium in the country were mining companies are stock piling and its effect on the environment and people. Recommend that there be harmonisation of the operations of institutions around Uranium exploration and nuclear development Recommend that the proposed legislation encompasses all aspects of uranium extraction and processing. Recommend the formation community grouping that will be tasked to create awareness on uranium Recommend that there be meaningful local involvement around Uranium processes Implore the Government to prioritise the safety of citizens 7

8 Conclusion We affirm and avow our commitment to the above stated issues and pledge our ongoing support on the same with unflinching resolve. We are also committed to working with Government, corporations, communities and other progressive forces to ensure that these Recommends are met. ZAMI CHAIR On behalf of all ZAMI delegates. 8