Government says effective regulation and monitoring of mining activities will help the country to benefit from the sector.
Mines Minister Christopher Yaluma says it is essential for Government to put in place measures that will ensure exploitation of mineral resources translates into economic development.
The Minister was speaking on Thursday evening when he officially launched the three year European funded mineral project worth 4.7 million Euro’s to be implemented in partnership with the Zambian government.
Mr. Yaluma says government has introduced a number of interventions such as Mineral value chain monitoring under Zambia revenue Authority which is aimed at improving transparency in the sector.
And Secretary to the Treasury, Fredson Yamba says despite the enormous potential by the mines to contribute to national income, the capacities of institutions responsible to monitor the sector are limited.
Mr. Yamba notes that this has led to loss of tax revenues and inaccuracies in data about production.
Mr. Yamba however, explained that the project demonstrates government’s resolve towards addressing the problem.
Meanwhile, Head of Cooperation of the European delegation to Zambia, Arend Biesebroek says the EU is making a major contribution to the mining sector aimed at enhancing transparency and accountability.
And the Chamber of Mines of Zambia has called for effective governance of the extractive industry to guard against transfer pricing and money laundering.
Chamber of Mines of Zambia president Jackson Sikamo says there is little knowledge on the ownership of extractive companies or their activities.
Mr Sikamo says in many cases the real owners of the companies that have acquired rights to extract oil, gas and minerals are unknown and often hidden behind a chain of corporate entities.
He was speaking at a workshop on beneficial ownership of the extractive industries in Kitwe.