SEVERAL stakeholders have commended Government for facilitating the re-opening of the Munali nickel mine under a new investor, Jinchuan Limited.
These include the Economics Association of Zambia (EAZ), the Mine Workers Union of Zambia (MUZ) and a local traditional leader.
The EAZ has said the re-opening of the mine is a good sign as it is an expression of confidence in the Zambian economy.
EAZ president Mwilola Imakando said in an interview yesterday that Zambians will benefit through jobs that will be created, while Government revenue will appreciate through tax collection.
“It is a good sign if a resource that was idling begins to contribute to the economic development of the country. The resource will create employment for the people, it will also make profits and in turn pay tax to the Government,” Dr Imakando said.
He said the investment into the Munali Nickel Mine by Jinchuan Limited sends a signal to would-be investors that Zambia has a positive investment climate where they can recoup their expenditure.
“As EAZ, we are happy when a resource that was idling begins to contribute to the economic development of Zambia,” he said.
President Banda re-opened the Munali Nickel Mine in Mazabuka on Friday, promising that Government will continue to encourage value addition to copper, cobalt and gemstone products to promote growth and diversification in the mining sector.
The MUZ has commended President Banda’s call and directive that each mining industry be monitored to ensure that respective local communities derive benefits arising from the investments.
MUZ general secretary Aswell Munyenyembe said in Ndola yesterday that President Banda’s statement is welcome.
“As a mine union we welcome President Banda’s pronouncement because this is what we have been advocating; to see that people benefit from the investments in various communities,” he said.
He said mining companies should demonstrate corporate responsibility by ploughing back some of their profits into communities they operate in.
Mr Munyenyembe said the benefits from the mining industry should benefit all stakeholders in the industry that include the employees, mine suppliers and contractors.
He said Government’s policies in the mining industry are still attractive to investors.
“Most of the mines that closed down have re-opened. This is as a result of good policies by Government in the industry,” he said.
He said, however, that the removal of windfall tax should be reconsidered, as the country will not benefit much from the mining industry.
He said copper prices on the international market are substantially increased to justify windfall tax.
“The proceeds would have been used for repairing roads that are being damaged by heavy trucks ferrying copper in and out of Zambia,” he said.
President Banda directed Minister of Mines and Mineral Development Maxwell Mwale to closely monitor the performance of each mining company so that local communities derive benefits from the investment in their areas.
Chief Mwanachingwala has said he is glad that the people of Mazabuka will benefit from the nickel mine through job opportunities and royalties that will accrue to the local community.
“We are happy because the country will benefit in terms of job opportunities and poverty reduction among our people,” Chief Mwanachingwala said in an interview.
The chief commended Government for its commitment to uplifting the standards of living of the people through job creation.
He pointed out that the Munali Nickle Mine is the second one being re-opened after Luanshya Copper Mines on the Copperbelt; both of which had been shut due to low metal prices during the global economic recession last year.
Chief Mwanachingwala attributed the re-opening of the mines to Government’s commitment to poverty reduction and making Zambia a preferred destination for investment.
“We would like to thank the President for wooing investors to come to Zambia. We hope that Government will attract more investment into the country so that Zambia can become self-sufficient,” Chief Mwanachingwala said.
He also commended President Banda for directing that the local communities should benefit through royalties from the mining company.
Chief Mwanachingwala hopes that this will translate into the construction of schools and an institution for tertiary education.
He urged the mining company to give preference to the locals when employing people for the mine.
He said, however, that this did not mean that people from outside the province should be excluded.
The Chinese company is considering upgrading production from 900,000 tonnes of ore to 1.2 million tonnes by 2012. This will in turn raise job opportunities from the current 345 to 450.
[Zambia Daily Mail]
