Thursday, June 20, 2024

Forget Nationalisation of Mines: Focus on Fiscal Policy-Moono


Economist Herryman Moono says Zambia should forget about nationalizing its mining industry but instead focus on fiscal policy.

Mr Moono who is an Oxford trained Economist and former National Secretary of the Economics Association of Zambia warned that until Zambia gets the fiscal policy around its minerals right, the huge revenues from the mines will never benefit the Zambian people.

“What we ought to understand is that Zambia has been mining Copper for almost a hundred years now, and it will be mining Copper for the next 100 years or so. With that in mind, we should clearly have the incentive to get the taxes right now to benefit our future 100 years in time,” Mr Moono said.

Mr Moono was reacting to a suggestion by EAZ President Lubinda Haabazoka that Zambia should seriously consider nationalizing its mining assets in order to increase the benefits from its minerals.

Below is Mr. Moono’s statement

I have seen sentiments attributed to my senior and President at the Economics Association of Zambia where he argues for a form of nationalization where government takes over the running of mines premised on the Chilean model of Codelco, the Chilean state owned copper mining company that was formed in 1976 from foreign-owned copper companies that were nationalised in 1971.

I would like to vehemently disagree with him on his argument for both historical and practical reasons. As this is a social media post, however, I shall not bore you with much technical and historical details.

Nonetheless, I will share with you the premises of my arguments.

To start with, let us understand that government can participate in the mining sector in a variety of ways:

1. Manage the resource on behalf of the population—State Owned Mines (The Kaunda way – Nationalisation)
2. Impose and administer the general tax regime—No participation at all (USA, Canada)
3. Take equity positions in some, or all, mining operations—Semi-participation (e.g., Debswana in Botswana, ZCCM – IH, Zambia)
4. Use state enterprises as operating companies—ZCCM, ZIMCO (similar to (1) above)


The nature of the participation will have a revenue implication for government. In the case of Zambia, it is a mixture of (2) and (4) where the government taxes the mines but still hold a minority share through ZCCM-Investment Holdings, which, until recently fell under the Investments and Debt Management Department of the Ministry of Finance headed by the Minister of Finance, but would now fall under IDC (Please correct me if I am wrong).

Prior to privatisation, the mines where government properties and the tax regime that applied should be differentiated from one that ought to apply if the mine is foreign owned. Post privatisation, however, the Mineral Fiscal regime has not been buoyant enough to capture the new changes in ownership and the subsequent revenues generated under foreign ownership (Tax buoyancy is an indicator to measure efficiency and responsiveness of revenue mobilization to changes in output in the economy).

Now that the mines are owned by foreign companies which are mostly registered abroad in tax havens, the only way the government and the nation can benefit from the mines is to carefully craft a mineral tax policy that will maintain and attract investment in the mining sector while generating sufficient revenue for the country. Investment in mining can be by locals or by foreign nationals.

However, given the high investments and running costs of mining, very few, if any, local firms engage in mining. Access to financing and the lack of a local industrial class has contributed to the lack of local participation in the mining sector.

Consequently, foreign firms – Chinese, Indians, Americans, Canadians, and Australians – who have easy access to financing in their countries have been the key players in the Zambian mining sector.

Zambian mining players have focused on providing support services along the supply chain – a weaker participation in local content – as well as thuggery mining, aka “Jerabos” and recently, the access to the black mountain premised on politically expedient ‘local empowerment’ which has killed many, and empowered a few.
With that, the high GDP contribution from the mining sector should be understood clearly—revenues captured from Copper Mining DO NOT ACCRUE TO Zambia! Not at all.

Only on paper when we calculate GDP figures and growth. What accrues to Zambia are the taxes and royalties and the PAYE that mining employees remit to ZRA. When we say that Zambia’s Copper exports accounts for 70% of all exports, we must bear in mind that the exporters are not Zambians, and the receipts of these exports do no accrue to Zambia.

Recently, the Chinese ambassador to Zambian said that the trade balance between Zambia and China showed that Zambia exports more to China than Zambia imports from China. On Face value this looks good. However, what he didn’t say was that when you dissect the composition of Zambia’s exports to China, they are mostly by Chinese firms or other foreign firms, and therefore, the proceeds of these exports do NOT accrue to Zambia. It would have made economic sense to Zambia if Zambian firms were the exports.

To illustrate this closer to home:

Imagine you own a farm, and you sublet part of it to a Zimbabwean farmer – since Zimbabweans are more hardworking and dedicated workers! When he has a bumper harvest and exports his maize to South Africa and banks the revenues in Zimbabwe, would you say your farm is doing well? Would you tell your children that we are now doing well because our land is producing more maize? Only if you are stupid, of course! The only way you can gain from the harvest is if the farmer pays well his dues. And that is what we need to do with our Copper.

What we have to do, and this has been proposed many times since privatisation, is that we devise a clear and transparent Mineral tax system and enhance the capacity in ZRA to effectively monitor Mineral output on which tax will be imposed.

In fact, since tax is just a proportion of revenues (Revenue = Price x Output), and since Price is set at the London Metal Exchange (Zambia is a small price taker) and is known to everyone, our government’s role is simplified:

Just monitor output and effect the tax rates!

The reality, however, is that the mines can afford the best tax lawyers and highly trained and highly paid accountants and economists, and these, when matched with ours at the negotiating table, we end up with the Anil Agarwal deal of KCM where we were mocked as a country as having no capacity to negotiate. And when it comes to negotiations, I must admit, Zambia has been on the losing end.

Just look at the profiles of the people who sat with the Chinese President when the Zambian delegation met the Chinese delegation (forget the fact that we had no writing pads), you will be amazed at how serious Chinese negotiating teams are – they get the best who can get the best value for their country out of the other camp’s country.

What is needed is to deliberately train, even at high cost, Zambians to be experts in mineral policy formulation and taxation at the ZRA and Ministry of Finance, and not entirely rely on the WB or the IMF (which is not the sole depository of knowledge as the Former Minister of Finance stated).

We also need not fear to take time and discuss what exactly we want to achieve from our resources, and engage with the mines, taking a leaf from the exceptionality of Botswana in renegotiating with DeBeers to form Debswana. We do not have many mines that we can fail to monitor their activities, we have rather been too reluctant to initiate the obvious proposals to improve our benefits from the mines, and when in crisis like now, we begin the political expediency talk of ‘Zambians should run the mines in order to benefit.’.

Until we get the fiscal policy around our minerals right, the huge revenues from the mines will never benefit the Zambian people.

What we ought to understand is that Zambia has been mining Copper for almost a hundred years now, and it will be mining Copper for the next 100 years or so. With that in mind, we should clearly have the incentive to get the taxes right now to benefit our future 100 years in time.

As long as successive governments shun reforms, which must be consistent and adhered to, not even nationalization will benefit us. I know that many of our colleagues think of the ‘good old days of ZCCM’ when they would have their laundry done by a branch of ZCCM and had all things going well for them even when the country was running down.

We cannot have a company that can rival Codelco today. What we need, however, is that the politics takes a strong fiscal stance that former Chilean Minister of Finance, Prof. Andres Valesco took prior to the 2008 Global Financial Crisis: Reduce your expenditures even if you have surpluses – save for the rainy day, no matter how politically unpopular this might be.

In conclusion, the PF have an enormous challenge and opportunity to redeem the country from the curse of abundance. The following would be worth considering:

•Enhance capacity in the ZRA and Ministry of Finance and the Ministry of Mines to adequately monitor, evaluate and appropriately tax mineral exports.
•Adequately mandate ZCCM-IH (through IDC) to be active in the monitoring process with the ZRA.

•Enhance governance systems, organizational and institutional capacity in sectoral ministries, in the ministries of finance and planning and Ministry of Mines.
•Promoting mineral resources revenue stabilization and reducing fiscal imbalances through greater fiscal discipline, certain level of fiscal conservatism and increased capacity for forecasting and managing mineral revenues.

•Fight corruption, real or perceived to enhance the country’s governance image.

On the basis of the above, I submit my dissenting view to Dr. Haabazoka’s argument.


    • Hjoe Moono is right, unfortunately Lubinda Habazoka seems too excited being EAZ boss. Bottom line is that we have a president who has no knowledge on economics and surrounded be equally ignorant advisers – Freedom Sikazwe, Kaiser Zulu, gremlin Amos Chanda, Bowman Lusambo and Stephen Kampyongo

    • Nationalisation is the way to go otherwise Zambia will remain a country of beggars. These so called infestors always demands unreasonable tax cuts with their governments threatening to cut aid. Don’t listen to economists if you want to progress. Especially the kind of economists high on capitalism

    • Useless discussions if mines. We used to yap this in bars all the time.
      Discuss what is PF’s 7UPND development plan, there is Social Cash in there.

    • Harryman, I like your positive contribution. We need more Zambians like you who criticise positively with facts & proposals. God blessed Zambia with base metals like Copper, Cobalt, Nickel, etc. Which world needs. Apart from fiscal policy we need to make sure NOW that we export refined products which have more value & not ore or soil. We need refining capacity for whole region NOW so that we’re exporting copper products. Next phase should be capacity building for Zambian joint ownership. Much as we need Zambian ownership we also need foreign investment. There’s no reason why there should only be one without other. Above all we need action plan for these good ideas. God Bless Zambia

    • @ Shu shu shu, a clear, & already rational explanation has been given by Mpemfu here.
      With a visionlss leader Mr Jonathan Pombe, & bone head stone throwing, @ times violent (Mposa mabwe) cadres like Kaizer, Freedom, Chimpyongo, Bowman & Amos all clueless & corrupt to the bone, you can nationalise every inch of Zambian soil, & the destruction, & plunder of Zambia will persist unabated!
      Remember “Advisor Freedom” in China exposed his Full Kaponya credential’s, by confessing he was NOT aware other metals like Cobalt are also extracted form Copper ore, as a by product.
      There goes your answer as these Grade 5 Mposa mabwe’s cluelessly “advise”, & take Zambia in a reverse trajectory, known as DUNUNA REVERSE!!

    • Nationalization is not a bad idea but come up with policies to empower the local entrepreneurs like what currently china is doing. Research and don’t rush into conclusions find out what the emerging economies are doing like Singapore and Indonesia have also taken a leaf form china. Create policy deliberations to empower the local small scale entrepreneurs teach them to partner and make it competitive as possible to enable efficiency and stabilize the local market for goods and services and the economy will grow from strength to strength. The govern should partly sell shares to the locals they should own it 50 to 50 with locals and whenever there is a change of government it will not be mismanaged because the government already is own half they wont dictate inconsistent policies as was…

    • The bottom line is we have a Lazy president who finds it easy to get loans from Chinese than to instill fiscal discipline or confront the mines to pay fair taxes.

      Look at how KCM is defrauding ZRA through VAT refunds. There’s no political will or capacity in PF00Lish Govt to resolve this broad daylight theft.

  1. This advise can not heeded to as most of the so called leaders in PF are inept and visionless. Hazooka gave his side of the story and Moono has given his. The paradox lies in dissecting on the information with a clear conscience and not one that is politically diluted. Like I said yesterday, nationalizing our mines is a far fetched dream that should not be entertained at all. What we need are proper monitoring mechanism in place were the government will have their people in these mines collecting data first hand on all activities for tax purposes. A prudent but fair tax regime is our best option leveraged to attract more investment in this Industry. Gunase has opened Mushikishi Mine were high grade emeralds are being mined and yet no one talks about it. We need to be proactive and not…

    • HH is visionless and an Under Five. If an opposition leader could call for a foreign government to come to his country which he desires to rule to come and remove a democratically elected government then that person is either CHILDISH or STOOLPID and is unfit to be a leader.

  2. The problem is that PF is not necessarily associated with fiscal discipline even basic austerity measures is a hard ask from them….Lazy Lungu has hire three Private Jets since the Zimbabwean Presidential Inauguration…am sure the lazy bum hired an even bigger one to NY.

    • All while a sober, & genuine humble leader Mugufuli of Tanzania used a commercial airline, to get to the same U.N. conference as wasteful Jona!
      If only it were possible to swap, or hire leaders from sober neighbouring non failed countries.

    • The problem is that UPND thinks from the box, from inside the box from the tribal box with HH inside it and Larry Mweetwa too.

  3. Well, Moono couldn’t have put it better. He puts forward strong points. EAZ must engage parliament on this very fruitful idea. The Scandinavians have been in the forefront to help the country fight these mining injustices and would be willing to provide technical help and training. A task force can be created which should encompass these brilliant minds.

  4. Lets allow mining to done by every Zambian. Remove red tapes such as illegal mining. That way it is going to benefit poor zambians. Other wise it is benefiting Chines who pays the tax which is eaten by those in Government (PF).

  5. The above analysis on the mining operational structure and capex needs fits the Zambian fiscal position but the Dr Lubindas proposal is also correct if you have the capital and access to markets just like these innovative foreigners who have gone to the capital markets earlier than US but it also should not simply end at the fiscal (taxes or resource rent) but also creation of capacity among-st our local Zambians through these revenues from the mines though Financial sector depending ,creation of Sovereign wealthy Fund to sustain long-term and create those capacities constrained in funding these mega mining projects and operational soft skills because by nature FDIs do unwind…

    • @Naphtali
      The Oxford trained economist, Moono, makes the following point: “Reduce your expenditures even if you have surpluses – save for the rainy day, no matter how politically unpopular this might be.” But probably Dr. Haabazoka would argue why you would need to save surpluses when you would require to prudently reinvest that with a view to generating more surpluses and building more local capacity to run the mines by yourself. There is something here that surprises me about economists who think of reducing expenditures even if you have surpluses. Is all expenditure bad? What if you invest in production and not consumption? Is that also bad?

  6. and owners of capital may retire to home countries and Zambians would still need to run the mines over 100 yrs for tax revenues and salaries for employed

    Rightly said Financing mining both in green fields and Old operated is a huge Investments Outlay calling for multi sect-oral approach and those sectors must be available at the Lusaka Cairo road centers in capital and skills or syndicated to Lusaka Capital is mobile and often chases returns in resources and often compensates demographics Nationalization No but creation of those capacities acquired by Foreign capital for the local management and participation Yes We have expert mining engineers and commodity traders to…

  7. similarly replicate those expatriates and create the necessary reserves to increase that beneficial away from simply the fiscal

    The currency set up is okay but increased Participation and creation of downstream manufacturing sectors and capacities is what we need to convert these non ferrous metals to a value above the Tax to create local synergies for further reinvestment’s to grow the economy in areas of commodity and alternative investments,currencies and fixed incomes,markets and derivative products

    Nationalization NO due to mega capital and managerial commitments but increased capacity and participation in sectors o the local markets to increase the Re-investments above…


  9. the simply taxes The current mining reshime and fiscal design yes is correct you can create favorable and deliberate policies to create those capacities like the Japanese and others are engaged in running southern copper or those Chile mines Its will end and start with the local as capital is flight and can catch the next plane when it feels like and you will need to continue running the mines for the local livelihood The assumption of holding investors of longterm must be balanced and taken as the first point but the alternative view is also important

  10. Well what can we say. Personally I would rather the government partnered with some company or country to start new mines instead of destabilizing the already existing mines. We should learn from the so called Brexit which has thrown Great Britain in total confusion. Much as we would want maximum benefits from the mines we should also take maximum caution.

    • Good. Government should not just let these guys own everything. You will be losing everything. You have to remain in them, at least, with a considerable amount of share. It must be a win-win situation for both.

  11. Abena Dr Lubinda Abazoka very intelligent thinker and like all schools of economic thought, Ma Russians typically of the Klem They simply say it hard and do it the way its seen to be correct but i think the thought behind the current fiscal reshime global is correct as capital and capacities are constrained and capacities are marshaled gradually creating those long taken capacities to increase that participation and will be sustain-ably so to create Zambia as an alternative mining and manufacturing country from the mining sector

    Both are correct depending on at what stage in capital and capacities because minning is a ultra mega project and operations and…

  12. may require huge capital Investments and reinvestment to operational We will reach there were ownership will be 70% Zambian and 30% local as capital and capacities are created

    The current taxes are not the option but if capacities are there and capital access is there Zambians are equal to increase the participation and partner to run the mines with other investors and create the much needed revenues for other sectors

  13. His arguments deserve to be heard. Though I have always said yes to nationalisation of our mines, it only makes sense if the concept is executed on the basis of strong fiscal policies alongside discipline.

    • Nine Chale,
      The mine ownwers always wants the status quo. as for me no need to rationalize but if the standards fall like in KCM, we have no choice but step in.
      ZCCM – IH should consider coming up with new mines that will be wholey Zambian owned. We can give 20% equity in the mines to investors but wholly run by our engineers.
      We can do it!!!!!

  14. You couldn’t run Zamtel ,couldn’t run Zambia Airways,cholera was a disaster you couldn’t manage,urban planning is run shoddily and on the economy you’re getting failing grades


  16. UPND minions, how can you today demand for Nationalization whilst your boss HH was on the hem of privatization. If you have found wrong with private ownership, DON’T blame Lungu but HH for selling parastatal Companies.If he was a real economist why didn’t he advise wright away that time not today.
    Is he, together with you now making a u turn if yes you are not dependable and you are not fit for plot 1

  17. In a free market economy like ours,nationalisation comes with a cost(for it will NOT be expropriation) as evidenced by the Zamtel takeover and still owing Lapgreen colossal sums of dollars. My question/problem has been how copper is sold and how taxes and costs to production are charged after the sale of copper.There is no transparencey and accountability in mining activities here in Zambia and I don’t understand why ZRA,Ministries of Finance,Mines and Justice have taken a laissez faire attitude towards the general administration of taxes while mines behave as they wish.The govt should play the role of ‘Big Brother’ to ensure compliance to taxation unlike the current situation.Iam in agreement with proposals 2 and 3 as mode of participation in mining by the Zambian govt as put forward…

  18. Disappointing Oxford Economist.

    Taxation is a form of rent-seeking. There is no way to be satisfied with rent-seeking since its a cat and mouse game. Countries that have maximised benefits from mining have ensured extensive backward and forward linkages (if you don’t get it ask this half-baked Oxford economist to clarify). So Chile, Canada, Norway, Saudi USA, South Africa, Canada work hard to make the inputs and provide most of the labour to do the mining and make products from the minerals. It’s not the tax please (in fact they offer generous tax holidays) – Value addition and local labour participation please!!! *****, return that degree to Oxford.

  19. Corruption scandals: Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans Corruption scandals: Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans

    This guy Moono actually makes valid arguments. Nationalization will just run these companies into the ground. We can’t manage anything successful as a country… look at ZESCO for example, the politicians go grab money from the company for political campaigning. Remember at one time these companies were public companies and anyone remember how that ended? Badly!

    The problem though is lack of political will, patriotism and too much corruption. Most of the negotiators you alluded to, it’s not that they are bad, but rather they get taken to the sidelines and get bribes and inducements and then they agree to anything on the table. They don’t the country’s priorities at heart, let alone thinking about 100 years to come, i.e. next generation. Unless we change this corruption, stealing…

    • Corruption scandals: Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans Corruption scandals: Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans

      continue reading…
      unless we change this corruption, stealing and plunder, ‘nchekeleko’ attitude and mindset, it won’t matter how much money is flowing from the mines. Even right now as we speak we are collecting enough revenue that can make a difference in our country (like buying medicine) but most of that ends in the greedy and selfish politicians, Lungu and his minions. So forget about good ideas like this, they will remain a pipeline under this political climate.

  20. “Mr Moono was reacting to a suggestion by EAZ President Lubinda Haabazoka that Zambia should seriously consider nationalizing its mining assets in order to increase the benefits from its minerals.”

    It is wonderful to see our Tonga brothers with alternative views. Their is hope for the south after all. Greetings from the west.

  21. I have always presumed that this Moono guy has an inherent inferiority complex…(the I can’t do it better than a white man).
    There is nothing wrong or impossible in nationalizing mines…Dr. Habazooka did not say that mines will/should be nationalized with thought…(put measures in place to avoid the pitfalls of corruption and inefficiencies).

    I would have taken Moono seriously had he supplemented the submission of Dr. Habazooka by building a framework that would make nationalization possible with sound results…
    But, no the man Moono even goes on to state that there is no company that can rival Codeco…how do you limit your thinking like this…ati ba economist……

    Anyway, people, no one should mislead you in believing that an economist understands business more than any…

  22. Nationalisation cannot flourish in an environment of corruption.It used to work because leader of yester year,though not educated,were disciplined in utilization of national assets.Stripping and pilferage of assets started when we introduced multipartism.Previously,there were rules and code of ethics which was applying to the nation.
    This free market economy brought in a lot of mischief in administration of national assets.People started having no respect for government resources.As at now,there are a lot of mismanagement of resources as depicted in Auditor General’s report.No action is taken and it’s business as usual.Institutions which are supposed to curb corruption have gone to the dogs.

  23. it might simply be a question of risk management without excess capital commitment and mining contract management Correct you will spend and fail to get the yield in embedded in the Financing plans The commodity prices may exhibit some contagion (increase) or backward on (decrease) and expose you to the sales risk your Financing and operational leverages in variable and fixed costs can also easily turn your Huge mining Investments into a loss making overnight You may not have those margins to support the losses on our current Lusaka commodity exchanges You may need therefore that capacity and participation for fully Zambian owned May be starting up with say the…

  24. May be starting up with say the smelters in the likes of Chapamo learning how to finance the operations and contracts to create the sectorial linkages with the other ZCCMIH and Private Zambian participating and develop the sector The current ministry of mines initiatives also support the local driven and participation with other focused mining experts

    Capital and working capital is the issue that is why we rent those resources at 15% hoping that we tax further at 35% and the individuals and the rest as the value of copper processed is taxed further in allied industries The current thinking of mining onto the truck to port and ship to China smelters should…

  25. Change Investing in these ultra-mega mining projects requires a lot of patience The mining projects infrastructural design and development is a long-term undertaking and could be a commitment of capital You will need to be an investor of long-term and therefore partners could be institutional Investors or asset owners We may need to create that capacity also in Cairo road
    Contracts and deals could take time to close 3 years or so and a typical Zambian minning must wait

  26. This guy makes more sense than that EAZ guy. That guy was looking at a shortcut to get out of trouble but leaving a lot of unanswered questions on the way. This guy seems to have found the correct way without resorting to arm twisting tactics. Maybe EAZ have a wrong person as chair.

  27. Nationalise Please. give us Pride and dignity in ownership of our resources for our EXCLUSIVE benefit. Most of our Mines are bleeding our GDP potential by taking away our money into foreign hands. Jerabo’s are hardly a problem when you consider the thuggery of the Mines that do not pay adequate tax and underpay Zambian Miners.

    We just have not benefited from this foreign owned relationship they ntake too much a percentage.

  28. This comment is very sensible than what Mr habazoka said. I doubt if Mr hbabazoka lives in zambia for him to surely suggest that any company should be managed by the govt of Mr lungu.surely? does Mr habazoka has any example of a govt company that is well run? E.g, Look at zamtel which they grabbed.Sorry habazoka u got it wrong.

  29. I support Lubinda because if KCM can run down the mines below the former ZCCM standards them yes we can should nationalize KCM.

  30. Just imagine in China students are able to manufacture products and once they complete their trainings they go straight into entrepreneurship. It is the way to go. We in Zambia and other African countries still in the old way of learning when students complete school or they think of jobs because they lack the capacity. We cannot even manufacture auto spares or create apps for artificial intelligent but in emerging economies students are doing it. We cannot even identify simple minerals. lets change the system and improve the education system to narrow the gaps. This area speaks volumes why we cannot nationalize the mines although its a good idea but it cannot go a long way. We need to use copper and gemstones as raw materials and start exporting quality cables and jewellery. In Kenya…

  31. they have auction for the jewellery market but they do not own gemstones like Zambia. We need to revitalize the manufacturing and mining sector and create efficiency by using our young age by equipping the with skills capacity through improved education system and technology. It has to start from grass roots.

  32. @ mwamona,You can’t be more apt. ask how many graduates have seen even just a copper ore and you’ll be shredded with astonishment

  33. I thought we attend the African Minning Inda and have seen Africans and partnership success stories Chile Itself is an example

    The “”Growth Center Thinking” is good as a starting point at a certain economic of macroeconomics and Current Account challenges but this should be thought in a broader context to capacitate Zambians and increase the participation either in equity or services Developing the sector to a level of Chile

  34. Though it has its challenges and inequalities but we can say its a showcase of how copper and other commodities can impact It’s about being innovative in the sector ,reforming policies not as frequent in the most transparent manner and boosting Investments attractiveness to ensure that Zambia becomes one of the richest economies well diversified and free in the sense according to the Frazer institute with the long term agenda of economic diversification at the heart
    When you look at Zambia’s Fiscals In GDP ,Per capital income ,The rates (inflation .employment Monetary Policy rate including the exchange rate ,mining policies can tremendourously help to address
    All you need…

  35. to review now and see the policy design is composition and value in Mining Sector Trade Surplus, Mining Sector Exports, Mining Sector Imports, Total Actual FDI Inflow under the decree law ,Mining (you can segment copper diamonds etc.) Gross Value Added at current prices or constant ,number of enterprises in mining and new entrants yoy and see the development The growth and numbers of real jobs or employment creation New allied or other diversified industries formation So you may see those decisions in M&A (mergers and acquisitions) reflected

    Typical ownership structures Barrick Gold (75%), Kinross Gold (25%),TeckResources (50%), Goldcorp (50%),Pucobre (60%), CODELCO (40%,PanAust (61%), CODELCO (39%)


  36. Anglo American Sur was the fourth largest copper mining company in terms of output in 2015, with a 7.6% share of Chilean copper production, according to the World Bureau of Metal Statistics. It is controlled by UK-based mining group Anglo American Plc., which also has operations for molybdenum and silver production in Chile. As of December 2015, the ownership structure of the company is as follows: 50.1% for Inversiones Anglo American Sur SA, 29.5% for Inversiones Mineras Becrux SpA (ajointventurebetween Chilean state-run miner CODELCO and Japanese peer Mitsui & Co.) and 20.4% for Japanese trading company MitsubishiCorporation.

    CAP a Chilean groupfocused on iron ore mining and steelmaking. CAP Mineria, the mining division of the group, is the largest producer and exporter of…

  37. exporter of iron ores and pellets in Chile, accounting for 0.94% of global iron exports in 2015,according to theWorld Bureau ofMetalStatistics. CAP was founded in 1946, as a mixed publicprivate company. It began operations as a puresteelmaking company in 1950and then as an iron miner in 1959.It has been listed on the Santiago Stock Exchange since 1982. The Chilean government sold all its shares in the companyby 1987. As of December 2015, CAP is controlled by Chilean investment trust Invercap S.A. (31.3%) and Japanese conglomerate Mitsubishi Corporation (19.3%) with the remaining shares being owned by Chilean banksand institutional investors

    You can go won to see most of these Investing Their mergers and acquisitions and see the ownership structure put Zambia in…

  38. You can go on to see most of these Investing Investors and align mergers and acquisitions in the
    mining sector to the maximum benefit of the country See the ownership structure and put them in context though Capital Invested is often compensated in those investments to reflect the risks and return If you have capital you can Invest and maximize the benefits like Chile though do not also support their export driven focus more as opposed to value additions but again that reflects capital and the way it has been routed to perform

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