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Alba Iulia
Thursday, October 14, 2021

We want value addition in Zambia, it is critical to the economy says Minister of Mines

Economy We want value addition in Zambia, it is critical to the...

Minister of Mines and Minerals Development, Paul Kabuswe has called for value addition in the mining sector. Mr Kabuswe said value addition is critical as it does not only provide more money but also creates more jobs.

The Minister was speaking when he addressed the media at Barrick Lumwana Mine Company LMC) in Kalumbila district, today.

“We want value addition in Zambia, that one is critical to this economy. Value addition gives you more money and gives you more jobs. There is a lot of benefit when you add value, it also means that you are not exporting jobs, so value addition is critical,” he said.

Mr Kabuswe also seized the opportunity to assure LMC management of predictability in the economy.

He said having a stable economy will help the mining company to plan well and thus have a stable tax regime.

“One thing I can promise you is that, the new dawn government has prioritised predictability in the economy not only for you the mining investors but for all investors. So there will be predictability, stability and there will be a win-win situation,” he said.

Mr Kabuswe explained that government does not want the mining sector to have challenges when planning but intends to help mining companies to have a stable tax regime.

“We do not want you to have challenges when you are planning because we are alive to the fact that mining is a long term investment. We want you to be in an environment where you know that tomorrow we are going to have a stable tax regime, you will plan nicely, so that you focus on the way that you are going to structure your production,” he said.

He further stated that Zambia wants to ramp up production figures on all the mining companies in order to increase on production that will contribute to the economic benefit.

He added that government will provide a policy environment that is stable, supports investment and also supports the worker.

And LMC General Manager, Paul Gillot pledged to work in collaboration with government to improve the future of the country.

“In order for us to move forward as a company we need to work in collaboration with the government of Zambia, together with your office, as you said if we do work together we will see a win-win situation not only for the company but for all Zambians going forward working with Lumwana,” he said.

Mr Gillot assured government that the mining company shares the aspirations of making Zambia a better place.

He said the mine is considering to diversify from the gold sector and is focusing on having a copper portfolio.

“Zambia has got a very bright future with Lumwana, we are taking copper very seriously and we are trying to diversify not just looking at the gold sector of the market but we are very much focused on making sure that we have a copper portfolio,” he said.

11 COMMENTS

  1. Come to think of it, we have Lumwana, Kansanshi, Kalumbila, Lubambe and several Chinese run mines why do talk about investor confidence. Challenge should be thrown to our local millionaires to venture into mining.

  2. The only possible time you will have value addition in the mining sector is when our own people (and when government policy require investors to invest in value addition within) run the mines and do the value addition. The current investors just dig and get the raw materials to their countries of origin for value addition and bring back expensive goods back in Zambia or they may sell to other countries where they can earn more money.

  3. Sincerely speaking Zambians do not know what this government wants to do , as all the promises they made are not workable we have to question what is their agenda is it only to have talk shows and continue promising the impossibilities.
    The song of value addition is the song of the PF does that song continue to sound good.
    The other song is borrowing money from IMF , they hated it during their predecessors immediately they won the elections they run for it , I wonder if they were just waiting to have chance, the third song is the infrastructure development how UPND hated that tune but quickly after winning elections it became their top song.
    What makes me to be worried is weather they have anything new as all we are seeing and listening to are
    only repetetions of the past…

  4. Those talking of manufacturing goods in Zambia must either be too young or just want to dream. The Unip government had established manufacturing industries to produce anything from blankets, copper cables, radios, TV sets, motor vehicles etc. But when highly educated people took over government, they said it was wrong for government to get involved in business. They got rid of these industries and opted for importation. That there was money to establish companies without borrowing. Today I don’t know where the money will come from.

  5. @Deja Vu. You have totally nailed it!!! Unfortunately people never listen. When you look at the spread of the countries that bought all those companies we once owned, then you will realise why we are even entertaining ‘war criminals’. Their economic assassin has finally delivered the biggest prize of all!!!

  6. The solution is simple bwana minister. Export 60% of the metal and hoard 40% for value addition locally. Stop ‘calling’ for value addition, this should be a government driven initiative. The raw material is yours, in your Country stop ‘calling.’ The electric vehicle market is itching for copper based components. The EU is going full electric, the demand is there. Set up those plants already and get to work. It took one medical doctor in Russia to start a medical university. Guts and glory. Tiye iwe!

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