Zambia Direct Democracy President Fred Mutesa has wondered why it is government that has offered to bail out mining firms in the light of a drop in metal prices on the London Stock Exchange.
Commenting on Mines Minister Christopher Yaluma that government may consider phasing out mineral royalties in order to help mining firms, Mutesa said the mining firms may be forced to fake losses in order to cash in on the offer by government.
“We are wondering it is the government that is offering to bail out mines when the firms have not requested. We are of the view that they will be forced to fake losses since the government has taken the lead,” he said.
“It is like the minister is jumping the gun. In any case removing or deferring miniral royalties will be like adding a subsidy which you are scarpping off from more deserved sectors like agriculture.”
He added: “Many times these mining firms have made huge profits and they have not shared them with the people or country where they are mining from. So why should we be in a hurry to bail them out?”
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