Anti-corruption advocate endorses renegotiation of Zambia’s mining contracts
29 March 2007
Eva Joly encourages Zambian parliamentarians to demand greater revenues so that the country could benefit from its lucrative copper industry
The Chinese Xinhua news agency reported that Eva Joly, renowned Norwegian anti-corruption advocate on assignment with the World Bank, urged the Zambian government to renegotiate the terms of its contracts with international mining companies operating in the country. According to the article, Joly encouraged Zambian parliamentarians to demand greater revenues so that the country could benefit from its lucrative copper industry.
A greater share of mineral royalties would allow the government to devote more resources to mitigating the negative environmental and social impacts of mining on local communities, as well as to poverty reduction programs in the country.
The European Parliament recently denied an appeal by Zambian civil society and the government for a modest increase in the country’s share of revenue from its mining operations in projects backed by the European Investment Bank (EIB). The country’s current royalty rate is only 0.6 percent, well below the 3 percent average found in other countries.
By promoting the renegotiation of these contracts, Joly added her voice to the increasing call for greater scrutiny of investment deals between foreign companies and national governments. In March, a coalition of NGOs launched an appeal to the government of the Democratic Republic of Congo (DRC), the World Bank and other international partners to "renegotiate, revoke or cancel" disadvantageous mining contracts awarded during the war and under the transitional government, in order to ensure that the Congolese people benefit from the exploitation of the country's natural resources.
Thus far, the World Bank has not officially responded to the call, but in March, President Wolfowitz was quoted in the Belgian press as agreeing that mining contracts in Congo should be subject to independent review and revision. Civil society groups will again take up this issue with the Bank at the World Bank Spring Meetings in mid-April in Washington, DC.
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