Investment in copper mining in Zambia has generated US$5 billion in the past decade, according to the general manager of the country’s Chamber of Mines, Frederick Bantubonse.
This has resulted in gross domestic product (GDP) growth of more than six percent.
“Zambia’s mining industry has recorded significant investments since 2000 due to a steady flow of new investments in the sector and some of the new FDI [foreign direct investment] was in the setting up of new copper processing plants and expansion projects,” Bantubonse said at a recent World bank training programme on “Governance of the Extractive Industries in Zambia”.
He said mining companies had contributed to the development of social and economic infrastructure in Zambia. Zambia is the largest copper producer in Africa and the fourth biggest globally. Its annual copper production is projected to reach 1.5 million tonnes by 2016. “Copper production went up from 257 000 tonnes in 2000 to over 700 000 tonnes in 2011 and is still rising given the steady increase in mining projects in the country, which have come because of the good investment climate,” Bantubonse said.
With many projects either under construction or still being planned, annual copper production is estimated to reach 1.5 million tonnes within the next four years. Projects in the formative stage include Konkola Deep Mine, Mindola Synchlinorium, the Chambishi South ore body, and the US$1-billion Kalumbila Mine run by First Quantum Minerals. Others are Lumwana and Chambishi mines and the Kansanshi Copper Smelter.
“All we need is stable mining legislation to propel Zambia to higher copper production and competitive levels because mining projects are long-term. “The re-alignment of the Mining and Minerals Act of 2008 by the government would put Zambia in line with the best international practices and make the mining industry more competitive,” the Chamber of Mines GM said.
However, the mining industry faces a number of challenges including the high cost of labour and productivity.
Zambia’s low productivity stood at around 15 tonnes per employee per annum compared to Chile’s 100 tonnes per employee.
This makes mining in Zambia more expensive than in other major copper-producing countries.
[ The Southern times]
Copper Belt is not even being developed!!!
http://www.bloomberg.com/news/2012-03-26/metals-climb-as-bernanke-backs-stimulus-commodities-at-close.html
The Chamber of Mines of Zambia is registered as an association for mining employers (small or large mining companies) and promotes the interests of its members so everything coming from them to the public is going to sugarcoated ie. how much of that has been taxed? They wouldn’t care less if the country was sucked dry…
ma rubbish
Copperbelt towns remains the poorest, dirtiest of all. PF you have also started feeding us with figures that made MMD lose. We need visible development and visible poverty reduction.
Where is this US $5 billion?
“However, the mining industry faces a number of challenges including the high cost of labour and productivity”. I guess you’re trying to tell us those pathetic wages miners in Zambia earn are high, sorry sir, we aint buying.
This is old news. Bantubonse mentioned this over two weeks ago. Are LT just doing some column filling here?
So he is saying that a Zambian miner produces 15 tonnes per annum compared to a fellow Chilean miner who produces 100 tonnes and cites the mining industry faces a number of challenges including the high cost of labour and productivity.This is just ludicrous are you telling us that it is cheaper to mine where royalty was fixed at 4.5% and that government will introduce a sliding scale royalty on copper production.
Zambia should closely monitor this scheme being implemented,ie. producers will pay between 3.5% and 9% of revenues, up from the current 4-5% flat rate. This scheme will rake in an estimated $3.1 billion some $700 million of that will come over the next three years from the copper mining sector.
This should have been the alternative to Windfall Tax in Zambia…