PRESIDENT Lungu says his administration is committed to dialogue with the mines because their investment is critical to the economy.

“We will be talking to mine owners and see how we can help them improve their operations and also have harmonious relations with workers. It is about us, investors, communities, workers. We are all an integral part of the same system,” the President said.

Speaking to journalists after touring the First Quantum Mine (FQM) Kansanshi copper mines and smelter plants, Mr Lungu described the experience as “awesome”.

The President, who took time to interact with some mine workers, also acknowledged the investment in the open mining system as a “huge investment with a special place in Zambia’s economy”.

Mr Lungu commended FQM for remaining opportunity committed to being an equal employer by employing women in male-dominated fields such as driving heavy duty vehicles in the open pit mines.

“What we saw goes to show that our women can claim any position in our society, they are showing it and we have confidence in our women. Ask Her Honour (Vice-President Inonge) Wina,” President Lungu said.

He said Government will continue creating an enabling environment for every Zambian to prosper in various fields of endeavour.

Earlier, President Lungu called on FQM to expand their corporate social responsibility from non-traditional areas and help compliment Government efforts to develop the country.

Mr Lungu said FQM, the owners of Kansanshi Mine in Solwezi must come on board and help improve road infrastructure in the mining town.

The President further urged the mining company to partner with Government and light up Solwezi Airport which closes to air traffic in the night due to lack of lighting on the runway.

Mr Lungu said this during a meeting with FQM general manager Matt Pascall and other senior management officials before touring the open pit mine and copper smelter in Solwezi yesterday.

“We have to do 21kms of roads here in townships, come on board to help improve roads including the airport. Expand your corporate social responsibility to non-traditional areas.

“Let’s work together and see how we can light up Solwezi airport. There is an increase in air traffic to Solwezi, and yesterday we had to disrupt our schedule (in Ikeleng’i) to land (in Solwezi) before it was dark,” Mr Lungu.

He however commended the company for its extensive corporate social responsibility in the health and education sectors among others.

And Mr Lungu said line ministries and institutions such as the Citizen’s Economic Empowerment Commission (CEEC) must take up the challenge to empower youths who are being sponsored in skills training by FQM at Solwezi Trades Training Institute.

FQM has partnered with TEVETA to train some youths in Solwezi in a bid to reduce unemployment.

He said the youths can be empowered with funds for entrepreneurship to help reduce unemployment.

And Mr Pascall said the erstwhile tax regime which Government recently revised did not encourage further investments into the mines.

He said mining companies are always at risk of collapsing without more investments.

Mr Pascall said the company has made huge investments including the construction of the largest copper smelter in Africa.

He said the mining company is deeply concerned about power outages which negatively affect production and that it is in talks with Zesco to find a lasting solution for the challenge.

The Jesuit Centre for Theological Reflection (JCTR) says the proposed strategy to refinance the two Eurobonds of US$750 million and US$1 billion by way of borrowing from International Capital markets as they mature in 2022 and 2024 will worsen the country’s indebtedness.

In a statement released to the media, the JCTR says borrowing from the International Capital markets is not an effective mechanisms to reduce Zambia’s debt stock.

Below is the full statement

The Ministry of Finance on 5th May 2015 launched the Zambia Debt Sustainability Analysis Report. Among the issues that were raised during the launch was the information that Zambia’s external debt was estimated to be US$4.8 billion. It is a given fact that Zambia has more assets than its liabilities. It is also a given fact that currently and in the short term Zambia’s debt is sustainable as a share of the Nation’s Gross Domestic Product (GDP).

The debt-to-GDP ratio has increased drastically from 19 percent in 2011 to 30 percent as of September 2014. However, what is of concern is that in the medium – long term Zambia’s public debt as a share to our domestic revenues will not be sustainable. Therefore, the ratio of external debt servicing to revenues is projected to spike in 2022 and 2024. Zambia will be under severe debt stress if no adequate contingency plans are made to thwart eurobond loan bulk repayments as they mature in 2022 for the US$750 million and 2024 for the US $1 billion. Therefore there is need to prepare adequately for these shocks which are looming in the year 2022 and 2024. We therefore contest the Ministry of Finance’s assurances that Zambia’s public debt is sustainable in the medium and long term. We are also very disturbed that government has applied itself to strategize on how to repay the two eurobonds given the short proximity maturation period and intervals of the two bonds. We are further perturbed that the proposed strategy to refinance the two bonds as they mature in 2022 and 2024 by way of borrowing from International Capital markets is not an effective mechanism to reduce Zambia’s debt stock but rather will worsen the nation’s indebtedness.

Besides the risks of a new debt crisis ,Zambia is also opening itself to threats from ‘‘vulture funds“. With the knowledge of hindsight, we need not remind the Ministry that Zambia was a victim of vulture funds in 2007 when predatory hedge funds sought US$ 55 million through the High Court in London, after buying a debt of just US$ 3.2 million that Zambia originally owed to Romania for buying farming equipment during the 1970s. Zambia was ordered to pay US$15.4 million. Recently Argentina was a battlefield for the future of sovereign debt management. After a chaotic economic and financial crisis in 2001, the Southern American country restructured its unsustainable debts, in a way accepted by 93 percent of bondholders. However, 7 percent rejected the deal and then the vultures moved in. They bought up cheap debt and sued Argentina in the United States courts. After a series of appeals the vulture funds won.

With public debt revolving around US$7 billion both domestic and external, this would require austerity packages in due course if no sound appropriate debt management mechanisms are implemented. We prayer as the Jesuit Centre for Theological Reflection is that Zambia must thwart the “too-little–too-late syndrome“and deal with the rising debt problem in a sound, adequate and logical manner. This means careful evidence based advanced planning. It is evident that to address rising debt Zambia has no choice but to modernize its tax system.

In Conclusion, as a matter of policy interest we call for the strengthening of the legislative framework governing debt contraction so that there is parliamentary oversight. Debt is contracted on behalf of citizens hence the need for the people’s representatives namely parliamentarians to perform an oversight role. Further, there is need to prepare adequate contingency debt management plans to address the maturation of the two Eurobonds.

Green Party leader Peter Sinkamba has observed that the size of the Zambian economy is a disgrace.

Mr Sinkamba said the small size of the Zambian economy is an indictment on all Zambians on their lack of productivity.

He said it is shocking that Zambia is the only country is Sub Saharan country that has seen its development index worsening over the years.

‘Around 1972, Zambia had a better GDP than Botswana and South Korea but today, these countries have made far better progress than we have and it is really a disgrace that the size of our GDP which is around US$ 20 billion equals that some private companies and some individuals in the western world,’ Mr Sinkamba said.

Mr Sinkamba who was speaking during a live Let the People Talk radio program challenged Zambians to change the way they think about the local economy if things are to improve.

He said Zambia needs a change of paradigm and political leaders that think outside the box.

‘Every politician that has come on the scene has told you the same lies. There is no innovation in their messages. We need ideas that will totally transform this economy and the Green party has proposed the medicinal marijuana project which has the potential to bring in US$ 10 billion a year,’ Mr Sinkamba said.

Mr Sinkamba said those opposed to his national medicinal marijuana project are victims of western propaganda against the growing of marijuana.
‘The problem is that our people have been indoctrinated for a very long time and I know that this will take time for people to fully understand what we seek to achieve for Zambia,’ Mr Sinkamba said.

The Green party leader revealed that the Drugs Act legalizes the cultivation of marijuana but in a controlled environment.

‘We already have a law that allows the cultivation of marijuana but we lack the implementation guidelines. We have since drafted a Bill which will provide for guidelines and controls for people willing to start the cultivation of marijuana, we have shared the bill with President Lungu, DEC Commissioner and a few stakeholders,’ Mr Sinkamba said.

He also challenged the Zambia Medical Association to come out in the open and defend the medical benefits of marijuana.

‘It is a pity that the medical association has chosen to keep quite when people are issuing wrong statements about marijuana. Just the other day, Mrs. Mbahwe, allowed my junior DEC officer to denounce the cultivation of marijuana but Mrs. Mbahwe knows the benefits but she has decided to remain mute about it,’ he said.

Labour Deputy Minister Alfredah Kansembe says government is happy that no job has been lost following protests at Barrick Lumwana mine in Solwezi district.

Ms Kansembe said Barrick Lumwana mine has indicated that no employee will be dismissed for participating in the protest.

She said no employee has been suspended but that written warnings have been served as a deterrent measure.

Ms Kansembe said it is government’s desire to see peace and harmony prevailing in a workplace as this will guarantee continued productivity.

She was speaking in Solwezi yesterday after holding a meeting with Barrick Lumwana mine management.

And Ms Kansembe has called on employers to stop interfering in union matters by deciding which union an employee should belong to.

She said some employers have taken advantage of the many trade unions in the labour market and are apportioning members.

Ms Kansembe said every employee has a constitutional right to belong a union of their choice and that it not for management to decide for them.

And Barrick Lumwana mine Managing Director Bill MacNevin said the mine has started implementing some of the recommendations made during the meeting held in Lusaka.

Mr MacNevin said the mine is working on reducing the presence of police on the site which workers felt was intimidating.

Ms Kansembe was in Solwezi to see the progress made on issues discussed during the meeting held between Ministry of Labour and Lumwana mine management in Lusaka and also meet union leaders.