Zambian government’s plan to ban raw copper exports may be detrimental to the Mining Industry

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The PF governments’ plans to ban the export of raw copper is expected to be highly discriminatory against the mining industry and undermine the integrity of Zambia as an investment destination.

Chamber of Mines of Zambia (CMZ) president Frederick Bantubonse and Association of Zambian Mineral Exploration Trade and Industry (AZMEC)president Gilbert Temba said the intention will be a trade restricting act especially at a time when Government is making concerted efforts to attract investment.

“We in the industry are extremely alarmed at statements suggesting that our government intends to address the challenges being faced by lack of value addition through a unilateral edict to ban the exports of copper,” they said.

The two associations said this in a joint statement in Lusaka on Friday.

They said while the mining industry fully appreciates Government’s intention of adding value to copper and share the important national aspirations to create more jobs and fight poverty, they are deeply concerned over the matter.

The associations have since urged Government to resolve challenges faced by the manufacturing sector through systematic policy changes that will enable the industry to emerge as a viable and growing sector.

They cited the tax regime as one of the most onerous challenges for manufacturing in the region adding that, “No economy can legitimately claim to have value addition when its manufacturing sector faces logistical, financial and other challenges.”

The two associations said a vibrant manufacturing sector is essential to reducing cost and the logistical problems currently faced by the mining industry on transporting numerous inputs into the country.

They said that Zambia will continue to remain one of the world’s most important mining regions in view of the world’s largest mining houses setting up in the country and urged Government to consult and engage key stakeholders on how the mining sector can best contribute to the overall development of Zambia.

[Daily Mail]

30 COMMENTS

  1. these ****** must be patriotic and help the country generat more jobs and add value to its natural resorces…bantubonse and temba and silly cows who should be taken to the gutter fro slaughter..viva PF VIVA Sata on this move.

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  2. I think Banning of anything is old school. In saying so i think GRZ should serious reconsider the benefits of investment in mining. The we might think we are getting some money from it but most of the money is spent on treating people for all the health issues the pollution causes. GRZ should make it a condition for all new mines to setup factories to add value to the copper before they are allowed to setup a new mine.

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  3. I thought every Zambian should support this as long as it is a long term plan and not an overnight thing. what is wrong with us processing copper even atleast 20% of what comes out of our mines?

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  4. “No economy can legitimately claim to have value addition when its manufacturing sector faces logistical, financial and other challenges.” let she he who has ears listen

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  5. We cant continue exporting ores, we need to add some value. will you ever buy even crude oil from America, dont mention any mineral ore, because they do something with their products to add value. At one time we were allowing the exportation of unrefined copper because of the same fears people are expressing here. Have we died since the burn of effected. What effect will this have on the mines if there products are bought locally all they will need is their monies. Unless we say they swindle the country as regard the prices at which the mineral is sold or how much is taken out of the country. Why should we always live in fear as if these things are not ours, those who whould love to say they will if they want to go they will to. Lets develop self confidence gentlemen.

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  6. I find it annoying when people talk about things they have little knowledge about. It is insane to ship ore, concentrates, and at some stage, even copper cathodes. When GVT talks about creating jobs, adding value to our copper presents a great opportunity, in fact, it also slows the pace at which these mine ‘holes’ are being created!

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  7. #CK spot on – I cannot believe Bantubonse and Temba are actually Zambians to be so negative on asserting Zambian interests. If the manufaturing industry is facing logistical problems surely that can be addressed the way it has been addressed elsewhere. Lets have a ‘can do’ attitude and stop living in fear. Investors are business people that we have to constantly negotiate with to ensure Zambians are not being cheated. If left unchecked they can screw us and blame everything on our corruption. This is a noble move by the govt and I hope policies are in place to drive this employment creation venture.

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  8. I wonder at the African mentality. Is this why Oil refineries are based in countries without Oil fields??? Is this why diamonds are polished off the continent in the name of specialty???? I once worked in an African country where the European employees kept insisting they were the only ones who could do simple things and they were listened to! This dullness is astounding in our African heads!!!!! Wake up!!! Localize your value-adding efforts even if it means brushing some old ways the wrong way. Why are we afraid to step out of the comfort zone?????????

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  9. Congo Dr banned the export of raw copper and yet still attract large investments in their mining sector. FQM was exporting raw copper for proccesing at their Bwana Mkubwa Refinery. After the ban the built a smelter in Congo Dr. So the …..is Bantubonse talking about.

    Bantubonse is a tired old man with pre-colonial economic theories still flowing through his half dead brain. Retire old man and go back to the land

    Go on PF ban the export of Raw Copper, we need more value addition to be done locally

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  10. This is a brilliant ideal to add value to the copper produced in the country, having working working for British Telecomms has really opened my mind just to know that 85% of the dropwire10 between the end users and PCP are running on copper wire, everytime I touch DW10 reminds me of Zambia. Why can’t these products be made in Zambia so that jobs are created for the local people, worldwide copper is in demand for the past 200 years. Just with BT we spend millions of these wires every month and this is just in the UK, talk about the entire world, we can manage to get a market share of about even 30%. There is no reason to drive in those potholes in Zambia and people leaving on below a $1 per day.

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  11. This is a great move by government and should be supported by well meaning Zambians. I’m shocked by the statement and negative inferiority complex of the hopeless shameless individuals. GRZ, GO AHEAD AND IGNORE SUCH RETROGRESSIVE PEOPLE. WE NEED MORE JOBS AND MORE MONEY IN PEOPLE’S POCKETS.

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  12. I want to show you that Botswana is now polishing diamond rite here in Bots before exporting.More jobs are being created but pa ZED fyonse ni poloitics.Lets refine the copper and get benefits ourselves-zambia is so rich all we need is to put logistcs in place.

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  13. Copper is not the only metal being refined from the raw ore being exported, so we are being ripped off on as many counts as there are extras above the copper. Gold, platinum and cobalt are included.

    Reliable sources on the ground indicate that these two gentlemen, sorry idio+s (Bantubonse and Temba) have been accepting brides to try and overturn this decision. Did some one say Commission of Inquiry of was that lynch mob?

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  14. Bantubonse is an [email protected], how can adding value to processes that create jobs and tenable activity be detrimental to the industry..why is this guy being allowed to talk to the public? is this guy a zambian????

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  15. check Indonesia too. They are doing the same and these mouth pieces of the companies are busy crying. I support GRZ on this one 100%

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  16. CMZ president Frederick Bantubonse and AZMEC president Gilbert Temba are sell outs. They are being used by the infestors who dont care for our welfare. You make more money from exporting a finished good than a raw one. We must always be innovative instaed of doing things the same all the time. Sure, since independence, Zambia is still just exporting raw copper. Finished goods is the right way. More jobs for Zambia instead of creating jobs in the importing countries.

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  17. These two gentlemen sound like someone who has just been paid to issue such a statement. Instead of focusing on what their friends told them over beer at some secret place, they instead need to ask why these mine owners invited them to a high level secret meeting so that they can issue this joint statement.

    Instead they need to start exploiting ways of setting the Lusaka Mercantile Exchange so that all minerals are sold FOB Lusaka. It costs upwards of $20/MT to export copper and with revenues over $10.2 billion a year at approx 900,000 MT produced a year imagine how much is spent on just exporting the commodity. That can be used to set up value adding networks at home and that should the focus of the two gentlemen. Of course the process should be transitional but can’t be stopped.

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    • Do we really need a Chamber of Mines of Zambia (CMZ) and the Association of Zambian Mineral Exploration Trade and Industry (AZMEC)? What exactly is their role in all of this?

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    • Duplicity of functionality leads to redundancy and that’s what we see here Ba Lynch … the guys can’t even think straight at all. Awe mwandini.

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  18. It is nice to see MMD, UPND, PF even heritage party support this one. Thanks Zambians for standing up as one on a progressive move by PF. MOre of this PF and not letting RB go and escape to the US, or silly clauses in our draft constitution.

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  19. Frederick Bantubonse is a sellout for the mining industry. He works for the Chamber of the Mines.

    Why would anyone just believe what he has to say?

    He also praised the mining sector’s non-payment of taxes because it made their taxes ‘more manageable’. This is while 45% of children are stunted from malnutrition, and he is defending tax evasion by the mines. Mines which sell minerals that BY INTERNATIONAL LAW belong to the Zambian people collectively.

    Google: (UN) General Assembly resolution 1803 Mineral Sovereignty

    General Assembly resolution 1803 (XVII) of 14 December 1962, “Permanent sovereignty over natural resources”

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  20. ” 1. The right of peoples and nations to permanent sovereignty over their natural wealth and resources must be exercised in the interest of their national development and of the well-being of the people of the State concerned. ”

    That is, the interest of the Zambian people, not corporate shareholders.

    ” 4. Nationalization, expropriation or requisitioning shall be based on grounds or reasons of public utility, security or the national interest which are recognized as overriding purely individual or private interests, both domestic and foreign. In such cases the owner shall be paid appropriate compensation, in accordance with the rules in force in the State taking such measures in the exercise of its sovereignty and in accordance with international law.

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  21. In any case where the question of compensation gives rise to a controversy, the national jurisdiction of the State taking such measures shall be exhausted. However, upon agreement by sovereign States and other parties concerned, settlement of the dispute should be made through arbitration or international adjudication. ”

    ” 6. International co-operation for the economic development of developing countries, whether in the form of public or private capital investments, exchange of goods and services, technical assistance, or exchange of scientific information, shall be such as to further their independent national development and shall be based upon respect for their sovereignty over their natural wealth and resources. “

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  22. Poorly researched article. LT can you clarify whether it is raw copper ore/concetrates or raw copper(generalised) . Raw copper may include refined LME GRADE A 99.99% Cu which every copper produce including Chile and USA exports. It would be folly to ban the sale of refined copper metal because the forex will dry up and where ( in which manufacturing facories) will the 750 000 Tns /year that Zambia produces of the finished/refined copper metal be processed into cables and other finished goods? ZAMEFA! MY FOOT! If it is copper ores and concetrates then a ban would make sense but not suddenly. Allow the companies to build smelting and refining capacity.

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  23. Since when did zambia add value to anything?,we have engineers who are clerks and cannot even manufacture a sim card .

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  24. I don’t even know how I ended up right here, however I assumed this post was once great. I don’t realize who you are but certainly you’re going to a well-known blogger if you happen to aren’t already. Cheers!

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  25. Dear Sir,

    We represent MIKADO company from Togo and we are working in chemicals and raw material field.
    We are interested on your raw cooper ore,raw bronze ore and raw lead ore for an important order.
    In awaiting for response kindly receive our cordial greetings.

    Best regards.

    Jacobi Jerome.

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