Times Of Swaziland: 10 PER CENT ROYALTY FEES  FROM MINING COMPANIES?

10 PER CENT ROYALTY FEES  FROM MINING COMPANIES?
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BY KWANELE DHLADHLA   on 06/06/2018 03:42:00


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.