Government has called on Zambians to desist from selling their small-scale mining licenses to foreign investors.
Mines and Minerals Development Minister Kalombo Mwansa says the trend must come to an end if the country is to see a reduction in poverty and create wealth for its citizens through the country’s resources.
Dr. Mwansa was speaking when he launched the Federations of Small-scale Miners Association in Lusaka today.
He urged the newly launched Federations of Small-scale Miners Association to fight the tendency among Zambians to pass on the economic empowerment to foreign investors.
Dr. Mwansa observed that Zambians who sell off their mining licenses have remained poor while the new owners of the mines have reaped handsomely from the mining activities.
He said government established the mining sector revolving fund in 2005 to help small-scale miners sustain their mining undertakings.
And speaking earlier, Federations of Small-scale Miners Association interim President Lyapa Manza explained that 14 regional mining associations have come together to form one national body that will serve as an umbrella body for small-scale miners.
He said the federation has been formed with the key objective of promoting the sustainable development of the small-scale mining sector.
He added that a well organized and supported small-scale mining industry has the potential of contributing immensely to not only poverty eradication but the economic well being of the country.
Bwana Minister: The law must compel all foreiners wishing to go into small scale mining to have 25% of the enterprise to be owned by Zambians. Businessmen won’t share wealth voluntarily so they would rather buy off the poor Zambian get cream off everthing for themslves. Meanwhile stop threatening the poor chaps with loss of their mining rights if the do do not use it because they have no capacity to operate mines.That much you know. Simple logic tell them to sell the mining right to a foreigner before the govt grabs it and leaves them empty handed.The threat makes the miners more desperate and give the foreigners more leverage to acquire the mining rights.
We have zambians who are capable of running those mines i dont know why we continue to allow foreigners to run them.
I agree with you Amutwe. why can’t something be done about this. It really sucks and makes me sick to the stomach
DO I SENSE XENOPHOBIA HERE? CAN LT BRING BACK THE COMMENTS MADE WHEN INDIAN LABOURERS WENT ON STRIKE PLEASE.
#2 Mining is an extremely capital intensive, high risk/high gain industry with long lead times. Skill to run a mine alone is not enough. Capital is the problem.The risk of borrowing to define mineral reserves is even higher because if the reserves are not there or are uneconomic, then you and whoever gave you the loan are done for.Because the millions will have been spent meanwhile the scietific conclusion is that there is nothing of economic value in ground/planned pit/mine. This makes joint ventures with people who already have money to risk (at least in the initial stages) the most practical option. And the people with money are greedy. They will only share when compelled by the law.
Fact is that foreigners bring along the required capital and essential experience to run not only mines, but various businesses booming in Zambia today. Why not partner with them like I have done instead of side-stepping them?
nine chile tell us how you did it? it sounds too good to be true. here you are… busy blogging instead of checking out the way things are being done? i am sure you bought a car an cell with for first 15 million profit.
#1.
The govt thus far has created an environment for individuals who have mining licences to innovatively take advantage of the current opportunities; i mean really does govt have to remind them why they got the licences in the first place. How much more spoon feeding does one require on the road to the take-off stage?
On the policy front, this is where non-mining licence holders need to benefit from through that cap 25% local indigenous ownership.
#7 THis is a typical indication of judging someone from one’s own point of weakness.
Instead of paving a path for yourself by enquiring from nine chile on how he has crossed over you are busy mudslinging… Ha!
That call should go especially to the chiefs.These characcters are a huge disappointment.just the colour of a muzungu sends them into panic
The problem you face in Zambia is similar to most other African countries, with government’s singing about empowering locals but practically doing nothing about it. We don’t need to be spoon fed but given loans that attract interest of less than 10%, why are our leaders in Africa not learning from Prof Yunus?
What is the criteria by which the government issues these licenses? To economically empower people is not only to give them licenses but to also make sure they have the knowledge,skills and technology e.g mining and quarrying equipment (conveyors,idlers, rollers, wind crusher) only to name but a few. May be this is way Zambian sell their licenses…
Sorry about the last sentence- I meant to say, may be this is why Zambians sell their licenses. I was a bit in a rush.
From my own experience in the “Kafubu Emerald Field” and in the Northwestern Province in Zambia, I would stress out that gemstone mining is very tricky and needs initial investment, as well as the time for benefit recovery. In general, small Zambian licence holders work very hard by primitive methods. However, they usually do not have time and necessary financial means to invest in technical equipments, and that together with a lack of the basic mineral occurrence knowledge results soon in a failure. I believe that the important thing to improve current mining activities is to create mixed companies with foreign investors and engage the independent consultants (government or UNDP) who will a
YEH RIGHT. WHEN YOUR DEPUTY IS BUSY SELLING. HYPOCRITES!!!!
http://wotnews.com.au/announcement/ethan_minerals_limited_exploration_update/01162760/