Mines and Minerals Minister Maxwell Mwale has told QFM in an interview today that with the revamping of the operations at Lumwana mine and the re-opening of Luanshya mine, the performance of the Mining sector is likely to shoot upwards.
Mr Mwale said despite the tumbling down of copper prices on the world market in 2009 due to the Global Financial crunch Zambia’s copper production was still high, recording up to 676 000 tonnes of copper production as compared to 650 000 tones in 2008.
The increment showed a significance of almost a 100 000 tonnes increase the production of the commodity.
He said with the development of the big mines and the re-opening of the mines that were put on care and maintenance during the economic meltdown Zambia will this year meet at list 700 000 tonnes of its primary commodity copper this year a significant increase as compared to last year.
The Minister said Government is looking for more viable investments in the mining sector that will enable it hit up to a million tonnes production worth of copper.
QFM
but its not our copper, all the mines have been sold so what is our benefit as citizens when most of these companies come with their own workers even sweepers especially china. we are in trouble. we don’t even need the minister of mines because what is he for? its bad:-?
A million tons for whose benefit? They take the copper out- process it and we buy it back. When will Zambia realize the need for finishing raw material into a product. What a country!
What is the purpose of having a million tonnes of copper leave the country?
Oh I remember, the MMD is going to be paid an extra bonus for their treason.
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if you see “warning, your browser is old, please install an update”, simply shut down your pc. it is a trogan affecting wordpress. had it here.
Good Evening
As in times past, this news will only cheer up the investors but not the majority of the local population, who still have to face the daily struggles to make ends meet.
Given that the price of copper is still around $ US 8000 (LME) per Kg, a rough calculation tells me that 1 million tonnes of copper should bring at least $ US 8 billion. Minus dividends for investors, cross-share holdings, etc. I think you will still get enough to pay off most of the country’s debts and improve lliving standards for 12 million Zambians…
or am I dreaming???@-)
#s. 1, 2, and 3 you are spot on. Chaps are proud of the copper which is not theirs. You can only boast if that copper were an input to our manufacturing industry at home. Very fuulish chaps.
#6 peter
So what do you think we should do? ZCCM in the last years of its existence was struggling to produce 300,000 tonnes. In 1964, we were producing 700,00 tonnes. We failed ourselves so what should we do?
#7 The Saint, you are in the Queen’s land but you can’t even understand simple English! “..manufacturing industry at home”, is the buzz phrase. If you can’t manufacture you can’t develop by import finished goods made from your raw material. Finito.
This minister is very black. Charcoal mines minister
Ala, chi Maxwell Mwale ububi pa menso!
I spoke to a prominent economist recently and you will be suprised to learn that Zambian GDP will grow considerably faster and sustainably if all the reasources were diverted to Agriculture. In simple terms there are less than 10, 000 people employed in full time mining in which Zambia gets less than 10% hard cash. Agriculture would employ half the population and just think about the income. What about striking a deal with China that for every ton of copper that produced in Zambia, we will process just 10% of it into finished producst for China’s consumption. The GDP will grow instangtanously by 40%. It sounds silly but solutions are in our palms. At current conditions we do not even need to mine copper. Pls men of influence talk to RB
no need to talk all sorts of nonsense and insults, now is time to campaign for the windfall tax….so that from the ,illion targetted tones, zambian coffers receive over 3billion dollars
#5 Nine Chale you are the dreamer of the year.Copper costing US$8000 per kg. ha,ha, ha.check your facts.ZCCM was a failed company which produced less than 300,000 metric tonnes per year.The mines were losing amillion dollars day in running cost.We Zambian we failed to run the mines. It takes time to manufacture articles or name it from 650,000 metric tonnes of copper.From 1991 how many Zambians have put their money in mining.let us just do what we can do best,Agriculture.
Well #5 Nine Chale must have meant $8000 per Tonne (£5,127.94) which is still a very good price. Thats why right thinking Zambians are calling on the government to implement a windfall tax regine on the mines.
A million tonnes projection of copper at the current ruling rate of $8,000 per tonne means $8000000000 in revenue. All the proceed of copper goes outside the country together with the copper itself. Zedians, what only comes back is salaries for miners (peanuts), peanuts payments to local contractors and peanut paying as tax to the govt. The bulk goes to offshore accounts for the investors (foreigners). Why did MMD remove windfall tax? We are knew the global recession was a passing phase and the copper prices were to rebound and they have rebound/climbed to near all time high. African Resources always plundered whislt we watch.
Good Morning
#13 Haambwili, that was simply my own rough calculation according to the figures I had in mind. I did not even expect it to be accurate after all and that is why I had mentioned the “dreaming” myself. However, it would be more helpful if bloggers like you in Zambia could play a more useful role on this forum by giving us accurate figures and precise data to help us clarify these issues instead of laughing at us outside the country who may happen to be less well-informed than you are.
Have a nice weekend:)>-
Our leaders are realy dull how can you boast when yo are losing , you even fail to tax these crooks ,who are taking away our copper with impunity , if I were Mwale or RB I would strongly persuade these investers to create industries for finished products here in Zambia, all copper products to be finished in zambia that would add valeu to our economy, but now we are losing everything due to poor leadership we have who donnot think of their future generations
Now ba Mwale, tumatobo twenu, you say 700,000 tonnes of copper will be produced this year. At $8000/tonne yields $5600000000 serious dollars. What is the Zambia worker, Zambian Govt Coffers get out of this?
All our wasting asset resources are taken out and 100% externalisation of proceed. Check the road network, so damaged throughout Zambia. These companies not paying any visible benefits in social responsibility.Why should they when the MMD is not taking them to task. Windfall tax removed which should have been triggered by the rise in copper prices. Aah something must happen pa Zed to make politicians wake up. We have never faught a war maybe thats why we so docile as a pipo.Unbelievable givers of resources to foreigners freely.
#16 oh, you are outside Zambia,but still you don’t need to be in zambia to know the current copper prices.i get the price on my cell phone. i am over 800 km from lusaka in the village.Iam a small farmer.this year i expect 1000x 50 kg bags of maize.thank u Nine. come back home my friend.
Copper ba senda ba fickerlor cacine, yonse amankuca yaya, zoona ee
MMD has been captured by UNIP and has subsequently lost its bearings. What is in it for the ordinary Zambian in Lundazi, Lukulu, Nabwalya, Chisekesi?
as if it is government producing the copper
11 Amayama,
” I spoke to a prominent economist recently and you will be suprised to learn that Zambian GDP will grow considerably faster and sustainably if all the reasources were diverted to Agriculture. ”
You hit the issue right on the head – spot on. The only excuse for having a mining industry is for it to capitalize other economic sectors – agriculture (for rural areas), manufacturing (for the city dwellers) and infrastructure.
This is why Zambia is not developing in a way that ordinary people can notice. We are exporting raw materials for others to develop into finished goods, and we are not even getting paid (taxation) for the raw materials.
We need a government that will heavily tax the mines.
Right now the mines are bribing the government not to tax them.
Not sure this danderhead understands that 1 million tonnes Copper means US$ 7.5 Billion revenue gain out of which the government will only get US$ 45 Million representing just under 0.1% going into government coffers from the Mines. Is this something to boost about. Shut up you fool
Only a fool like Maxwell Mwale will go around bosting about how much Copper will be produced without understanding what benefit a Million Tonnes will have on the people. Just shut your mouth, you iritate me.
Somebody please inform me as an ignorant Zambian what happenes to this copper, how much revenue zambia gets from it and where that money goes????? Mwa kaunda this copper built towns e.g hospitals, schools, houses, roads, etc….. 😮
The Copper mines are owned by Western investors. Dont confuse yourself with race (Chinese, Indian, etc…), its all western money from western investments with western technology. You Zambians nationalized these mines in 1970 and ran them into the ground by 1990. These mines were running at a loss and there was no re-investment into the business. No new technology was introduced in 20 years of running these mines.
The only salvation was to sell these run down mines back to the people that know how to run them profitably…Western investors! Thank God for western investors, you guys have jobs and your government earns an income through taxes from these businesses.
The investors had to pump in over US$5 billion into the delapidated mines just to revamp them.
Thanks to increased Western investment, Zambia can boast of 1 million tonnes of copper production. Had it not been for the US$5 billion investment in revamping the mining sector, Zambia’s production would have remained the lowest in the world. Thanks to Foreign Direct Investment, Zambia can now boast!
As long as government continues to make less than a fraction of a percent from total revenue of copper, we will never see Zambia develop. We need to re-negotiate with the mining companies. The Zambian gov needs to own between 45% to 55% of all mining and oil companies in zambia, Of course, this needs to go hand-in-hand with strict monitoring accounting and use of the money realised from this. Otherwise infesters will come in, sodomise us, drain us of our resources and leave us diseased and poorer than they found us. How can you explain someone who moves into your house and claims to want to make your life better, and requests that you give him nothing but total obedience in return. Very soon you’ll find him in bed with your wife and daughters and you will have no say. Wake up!
Smuggler’s Draft, ” As long as government continues to make less than a fraction of a percent from total revenue of copper, we will never see Zambia develop. We need to re-negotiate with the mining companies. ”
We don’t even need to renegotiate with the mining companies. We can just pass a law that says that every company in the mining sector will pay 20% of it’s revenues (not profits, turnover) in taxes, and that any company found to hide revenues will immediately lose it’s license to do business in Zambia.
The problem is not legislation, the problem is that there is no will to stop taking bribes on behalf of the MMD.
Zambia is still a sovereign state, with the right to levy taxes the way it sees fit. The foreign mining companies are criminals. They are tax evaders.
Dear all,
Instead of us wasting time politicking and the usual insults, why cant we use this stage to come up with ideas and perhaps form businesses, some of us know where the money is, some of you have the money, lets use this site to get connected…..
Who the hell wrote this artical? U need to go back to sku!