Thursday, March 28, 2024

Zambia copper, cobalt output up in first half

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Copper production in Zambia, Africa’s leading producer of the metal, rose by 16 percent in the first half of the year after mines increased output as the global economic crisis eased, central bank data showed.

The first-half copper output of 393,089 tonnes put the country on course to hit its annual target of 750,000 tonnes.

Zambia last year produced just under 700,000 tonnes of the metal, used extensively in construction and wiring, after mines which had suspended output during the global economic crisis resumed operations.

“This year’s production should exceed last year’s figure given the impressive first-half results,” said Chibamba Kanyama, an analyst at think-tank Economics Association of Zambia (EAZ).

“The new mines like Lumwana are increasing their output, and other mines which resumed production after the global economic crisis are also picking up relatively fast.”

Zambia’s copper exports during the first six months rose to 405,784 tonnes from the 310,956 tonnes the southern African country exported in the first half of last year, data showed.

Kanyama said the mines were drilling deeper because of rising metals prices.

Cobalt production during the period more than doubled to 4,057 tonnes from 1,967 tonnes last year, while exports of the metal increased to 3,889 tonnes from 1,950 tonnes last year.

Kanyama said the restarting of output at Zambia’s largest cobalt producer, Chambishi Metals had greatly contributed to the increased cobalt production.

Zambia has continued to attract mining investments to lift output to the targeted 750,000 tonnes this year and 1 million tonnes by 2012, Central Bank Governor Caleb Fundanga said last week.

The government and the Chamber of Mines of Zambia both said investments in the mining sector, the country’s economic lifeblood have peaked at $5 billion in the last eight years.

The mines are a major employer in Zambia, a country of over 12 million people.

Foreign mining companies in Zambia include London-listed Vedanta Resources, Canada’s First Quantum Minerals, Equinox Minerals, Glencore International of Switzerland and Metorex of South Africa.

[Reuters]

11 COMMENTS

  1. There goes the wasting asset. There goes our resources. Now what total benefit to Zambia because the copper shipped out has gone for good and MOST proceeds (US $)never come back to Zambia but Banked in off-shore accounts, later to be loaned to Zambia on prohibitive conditions. God gave us the resources, we have given up on them. How can we be blessed when we have no slightest control over things God gave us freely????

  2. There goes the wasting asset. There goes our resources. Now what total benefit to Zambia because the copper shipped out has gone for good and MOST proceeds (US $)never come back to Zambia but Banked in off-shore accounts, later to be loaned to Zambia on prohibitive conditions. God gave us the resources, we have given up on them. How can we be blessed when we have no slightest control over things God gave us freely???? Aaah Zambia Why?

  3. There goes the wasting asset. There goes our resources. Now what total benefit to Zambia because the copper shipped out has gone for good and MOST proceeds (US $)never come back to Zambia but Banked in off-shore accounts, later to be loaned to Zambia on prohibitive conditions. God gave us the resources, we have given up on them. How can we be blessed when we have no slightest control over things God gave us freely??

  4. How is this increased output benefiting Zambia in terms of increased tax revenue? Yes, GDP figures will go up but how does that benefit ordinary Zambians in terms of employment creation, infrastructural development? Need to bring back the windfall tax and remove all subsidies to the mines, e.g., tax incentives and utility services.

  5. Have any of you figured out how the Chinese look at us when the DULL RB goes to BEG for a LOAN from them. A simple calculation indicates revenue of US$5.29Billion in 2010 by the Mines. With the PF/UPND Government in place, we can raise at least $1.5Billion Dollars from this in form of Taxes and thus reduce PAYE for the Harworking Zambians, raise enough money to build our own hospitals (and not Mobile Hospitals bought from BORROWED MONEY), give enough money to NHA (and not NHA Borrowing) which will reduce final cost for the HOUSES

    With adequate tax from the Mines (and not borrowed Money) the PF/UPND Government will have enough money to fund FRA Purchase of maize countrywide and repair roads. IMAGINE YOU HAVE A PRESIDENT SEEKING LOANS WHEN THE MINING HOUSES ARE PRODUCING $5.29Billion.

  6. RB has never succeeded in any business he randown numbboard. I dont know how his farm looks like and wants run this country the same way ; in Zambia we have immence minerals under the soil but our leaders keep on begging ;; to me they appear to be so dull because they cannot see money where it is, now on top of copper we have cobalt , just imagine even taxing these mines properly would make Zambia rich

  7. #1 and 2 You can talk about RB you will never get closer to what he has achieved both as an individual and Government.
    Is he the one who made you onto economic exile. Keep on talking we are making progress every day

  8. #7 Wapya Munzi, I dont understand you, You judging RB to forever achieve much more than me. That man is 74+ yrs old, I’m 29 yrs old & running an Engineering counsultancy firm, so where do you base your judgement when you are not GOD. The thing is people in Leadership must be condemned when things are going wrong.I have voiced out capitla flight tied to resources (mineral wealth) we export year in year out without control. I started this condemnation in 2000.The South Africa economy demands most revenue generated from mineral sales you bank it in the country not 100% extenalization. It’s madness the way we do things, thats why you have even an unstable exchange rate cause chasing few dollars. Investors must be mutually managed,we dont do it thats why mines not doing social responsibility

  9. #7 – Not sure anyone can company himself to RB. The Guy is dull and nothing to show for all his time in politics. All the companies the monkey had closed down (He just can not manage a simple kantemba sucessfully and later on a Country, that’s why he’s failed) and ended up drinking Kachasu in the village before mwanawasa felt sorry for him. If anything his legal salary is K10million per month and wonder what your basis of comparing Mpangula Mputhyu is. Debate the issue at hand and not individuals. Only you would want to be equated to this failure of a human being (RB).

  10. # 8 you are right. Problem in with Zambians is ignorance. The government says if we have windfall tax the mining investors will leave. Thats a big lie. Why would they leave when they want money as well. Windfall tax doesnt mean they will make losses. We want to share in what comes from our land. Its only in Zambia where today someone can wake up make a transfer of $100,000 to a foreign country with ease. Chibamba should also tell the truth, the cobalt at Chambeshi is from DRC and not Zambia

  11. # 9 Mukabe come 2011, thanks. I have always known there are brainy pipo on this net. Mukabe is one of them. RB current wealth if he has any is due to deals. I work hard and gets much more than three times K10m legal salary RB is entiltled to. The problem is RB is badly brought up old man who is very selfish and likes deals. We have seen it for ourselves in Zambia. He has taken over tender committee’s job, now being done at state house – single sourcing all the major projects. Yes as Mukabe has said, its a fallacy for anyone to compare with RB. First he is married to a girl 40 yrs his junior whom as an old man he impregnanted out of wedlock, 2nd he mismanages OUR resources, 3rd he makes a joke of himself, when he is wrong he says we respect him because he is old, but behaves like a kid

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