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10 PER CENT ROYALTY FEES FROM MINING COMPANIES?

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MBABANE – Mining companies have been called upon to declare at least 10 per cent of mining royalties to the communities where they extract minerals.


This was one of the major recommendations from the Mining Indaba convened by the Coordinating Assembly of Non-Governmental Organisations (CANGO) at Sibane Hotel yesterday.


Publish What You Pay Consortium member from Zambia, Charles Mulila, advised that the Kingdom of Eswatini ought to take a leaf from the kingdom’s ally through incorporating a clause that would allow for 10 per cent mining royalties specifically for the people who are inhabitants at the areas where mines are located.


Generally, royalties are paid by the owner or the operator of a mine to compensate for natural resources that are extracted.    
“At least 10 per cent mining royalties apart from what the companies pay to government for licences and as taxes.

This should be done to cushion effects of mining processes which greatly affect the people either residing or employed around the areas where the mines are located,” said Mulila much to the applause of the nearly 100 delegates who crammed the auditorium.


He stated that it would be prudent to allow the people directly affected by operations of the mine because they suffered consequences of evictions and medical complications emanating from mining operations.   


According to the CANGO scoping mission to generate knowledge of the extractive industry in the country, the Kingdom of Eswatini is endowed with limited natural wealth in the form of iron ore at Ngwenya, coal at Maloma and Mpaka, diamonds at Dvokolwako, asbestos at Havelock/ Bulembu and forestry in Bhunya, Pigg’s Peak and Nhlangano to mention a few.

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