Economics Association of Zambia President Lubinda Haabazoka has proposed that government takes over the running of the mining industry.

Dr Haabazoka who is also Head of the UNZA Graduate Business School said Zambia will only benefit from the mining sector when it starts running the mines.

The Zambian government is spending $700m in VAT refunds to the mines annually and $240m in electricity subsidies to the mines including $60m in fuel subsidies to the mines annually.

“Total $1billion. Yes $1bn that if we withheld, we could repay all our Eurobonds without refinancing. Now can you ask the mines how much platinum and other rare minerals they mined last year? Where are the proceeds? Ndola refinery under ZCCM was responsible for extracting such,” Dr Haabazoka noted.

“The mines last year produced over 800 thousand tonnes of copper. The average price of copper last year was $6000. In total, they received not less than $4.8bn. Now these are official figures. Now how strong was our currency going to be if we kept even $2bn of that here?”

He added, “Chile, the largest copper producer learnt management of its mining companies from Zambia. Their company Codelco whose CEO I met sometime back was formed under ZCCM model. Foreign investors in Chile were given greenfields and government there cannot be cheated because they also own mines. Chile today has a copper stabilization fund that the country uses during downward economic slumps. Chile today is developing very fast and after copying from us do not know any inflation problems.”

Dr Haabazoka said Zambia needs to act now.

“We need to act as a country. For those saying we can move in to control the negative trends in the mines, what is your alternative proposal?” he asked.

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107 COMMENTS

    • I agree with this man… the truth always catches attention of other learned individuals!

      You speak kandidly in this reality. The issue is, are they listening? Our leaders lack self belief and think anything foreign is better.

      It is the right time to do it…

      #nationalisethemines

      I agree Doc Haabazoka

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    • The Government should have some sort of stake in the mines to stop these so-called investors pilfering the resources while they are enjoying wholesome ownership of our mines. KK’s model of government owning a percentage was a good approach then. In this modern time with all the educated people a model can be devised/agreed to stop this daylight robbery of our resources by the investors. And yes time to act is now!

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    • This would be great if we had a competent and honest leadership. But with a corrupt, incompetent, thieving bunch like PF, the mines would be ground to a halt in a few months. Mining is not a simple business. It require very high levels of competence, planning, investment, and strategy – all things that are completely anti-thetical to the PF way of thinking.
      Let’s get thinkers into government, then we can make it work. PF would running the mines would be like monkeys running a banana plantation, or rats running a groundnut processing plant

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    • Russian Doctorate are sub-standard.

      If PF have failed to operate simple companies like ZESCO, ZR, Tazara, what more mines. Antonio Mwanza is on Zesco payroll.

      We’ve been down this road before with ZCCM. Govt was pumping in $1million every day to keep it afloat. There was over employment, abuse of resources, diesel theft, managers pulling bull-dozers from the mine to go till their personal farms. Francis Kaunda built his mansion using pan bricks imported from Australia. He has a serious collection of vintage cars.

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    • @Journeyman: This agenda is not political. If anything, opposition should rally behind such ideas and make them work. You see, that is exactly how those who want to control our resources want us to think. Fight each other while they go unchecked. People like you have been made to think exactly like they want you to. The Chinese got rid of those mental blocks and forged ahead. Sad that today, even with more educated Africans, you can’t see beyond a certain level, my colonised friend.

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    • Zambian Citizen, I am not speaking from a political pees perspective, but a PRACTICAL one. I have w worked in mining so I know what I am talking about.
      Mining requires a very high level of financial discipline, technical competence and precision, spot on long term planning. Mining gobbles millions of dollars in production and maintenance costs. The problem is that most people just look at how much the mines are making from selling minerals. They don’t see how much THEY SPEND. It’s very delicate. It needs level heads, and well thought out strategy to run a mine profitably. You can’t just wake up and say “Am going to run a mine”.
      As far as I can see, there is no competence, no financial discipline, no strategic thinking in PF. All these are present in the Chinese you are sighting…

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    • Just have a look at appointments at IDC.. The CEO is not qualified in any way to run IDC. But because he is a PF cadre he gets the job. Mind, I know the guy so am not speculating. The clown who was just fired from heading zampost (we understand) is Sunday Chanda’s relative. Again political appointment.
      You see, the problem is that appointments to major, strategic positions is not based on competence. It’s based on political affiliation and boot licking. This is what makes our parastatals non viable. Do you really think that with this kind of culture our government can run the mines? Come on bro. Let’s be serious. This is the same reason why the land reform program flopped in sin. You just grab land from very competent white farmers and give it to incompetent cadres. Instead of first…

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    • Shameless, I agree with you, this guy has lost it!!! It is this king of careless talk that will further erode investor confidence and result in the Kwacha hitting K20/$ before we realise it. Why not focus on our own shortcomings and careless borrowing. Clueless!!!

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    • Why did Zambia sell most of its Parastatals? We failed to manage them profitably. What has now change that will make us run the mines profitably. It’s like watching a football game, it looks simple from outside but when they put you in the game it’s a different story.

      Yes you can talk about about how much the investors are making, I wish you could also share the figures of how much they are investing.

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    • Not this fat young boy again…he thinks numbers add up with PF as reckless as they are, PF removed subsidies for all except the mines to fund infrastructure but what did they do they misappropriated the funds on grossly inflated projects and started borrowing. You can not withhold VAT every Revenue Authority repays…how much is ZRA collecting in tax? Its easier to collect but very hard to repay.
      This fat boy should just ask Lazy for a job at State House…but Lazy doesn’t like educated foools he prefers Kaponyas like Kaizer and Sikazwe around him.

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    • POSTERITY HAS JUST WOKE UP TO CONTINUOUSLY CRITIZE DOUBLE H FOR THE SALE OF OUR NATIONAL ASSETS. I HAVE WARNED YOU NIGGAZ THAT DON’T DEMONISE TONGAS EXCEPT FOR THOSE IN THE GROUPING CALLED UPNDEAD BECAUSE THEIR LEADER IS A PRODUCT OF AN UNFORTUNATE TRIBAL REMARKS AND AT THE CORE OF OUR MESS.
      “””””””””””””””””””””””””””””””””””””””””””””””””””
      In the thick of the sale of our national assets is double h and Nawakwi. If you hear the later’s remarks on the pressure she/they felt to be arm-twisted into the sale, you will laugh at the naivety of the perceived lack of alternatives. Haabazoka, you’re right and you really sound like Socialist Party leader M’membe but no so fast. You have to understand the dynamics and folks behind the…

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    • ..sale. Right now the IMF and the World should be cursing you saying who is this thick nigga talking with authority? How I wish you were this educated and vocal back then you. You would have put a halt to the nonsense and mess double h put and the MMD cliques put us through. You wonder why the Zambia /China is under fire and the crooks behind. Repossesing the Mines is an “almost” uphill battle to say the least. Zambia risks sliding back to the 90s with the waste sanctions from the impending from the West through IMF and World bank. The very crooks who swindled us of our assets. Good luck!!!

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    • Thorn in the flesh – It just shows how immature you are by using the N word…anyay most of you cadres are childish blind followers on a leash.

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    • Habazoka has a good point – nationalise the mines by retaining 50% shares in all mines, and split all profits, taxes, royalties at 50/50, e.g. in Bostwana.

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    • Ke Nako – Botswana owned the mines before the negotiated a win-win deal with DeBeers…who had no choice as they threatened to flood the market with cheap diamonds….you have sold the mines for a song with agreements for them not to full price of energy…do you honestly think an utterly daft corrupt lazy man Lungu can negotiate anything? Have you heard him speaking…

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    • @1.13 Gay Jay

      You are afraid to use N word a.k.a Nigga in the West where it hurts so badly and invokes unprintable amounts of memories . Get over it my nigga.
      Meanwhile I’m sure