STANDARD Chartered Bank says Zambia’s copper output this year is set to exceed the peak of 720,000 tonnes recorded in the 1960s when the country was the fourth largest world copper producer.

The production estimate is against 644,000 metric tonnes projected for last year.

Speaking during an economic forum in Lusaka, Standard Chartered Bank Africa regional head of research Razia Khan said Zambia has continued to register good growth in the last couple of years with mining in 2009 accounting for 21.4 percent, construction 15.5 percent and agriculture 7.1 percent of Gross Domestic Product.

Ms Khan said the commodity price boom on the international market has led to greater investment in Zambia’s mines.

She said the metal recovery on the international market will help generate wealth and create confidence.

“The price of copper is being supported by the Chinese economy and their demand for copper in auto production, property market, power equipment products and home appliances output,” she said.

Ms Khan said there are concerns about copper inventory levels in China and whether the price of copper would finish at around US$ 7,500 per tonne in 2010.

She said although Zambia is headed for a boom in the mining sector, there are structural bottlenecks that could affect growth, citing poor infrastructure like roads, railway and availability of power.

She said it is important to know whether the state of roads and railway system will sustain growth in copper.[quote]

“2010 outlook is good and mining sector need to think long term. There is need to take into account the fluctuation, productivity and look at contribution of mines into a more holistic manner,” she said.

Ms Khan said there is a strong view from the civil society to ensure that there is some payback from the mines.

“Zambia’s biggest problem is the large informal sector. There is need to widen the tax reform,” she said.

She noted that if Zambia could grow its economy at 6.3 percent during the global crisis period, there is potential for double digit growth, which needs holistic contribution from all sectors.

“Its not just what is happening to copper that matters but what is happening to the exchange rates which have an impact on trade. Zambia has had trade surplus since June and our analysis is that trade balancing will remain in surplus,” she said.

Ms Khan said the Bank of Zambia now has a healthy reserve position and its activity in the market will help in smoothing Kwacha volatility.

She also noted that maintaining single digit inflation would require hard work on the part of Government.

“If the labour unions continue to demand double digit figures, a wage growth of 20 percent will have inflationary pressure,” she said.

[Zambia Daily Mail]

KANSANSHI Mine has paid out K1.8 billion to Solwezi Municipal Council (SMC) for property rates for the first quarter of 2010, public relations manager Chris Mulaliki has said. Mr Mulaliki said in Solwezi yesterday that although the K1.8 billion was a drop in the ocean, considering the council’s budget, it would go a long way in meeting various expenditures.

He said it was good that Kansanshi Mine had fulfilled its obligation to the council of paying property rates. Mr Mulaliki said that the local authority had this year budgeted to spend K25.4 billion and the major source of revenue to finance that would come from fees and charges such as service, licenses, surveys fees, building permits and others.

He said revenue from fees and charges like licenses, service charges, trading licenses, survey fees and building permits would amount to K15.4 billion, while revenue from rates of properties would come to K4.2 billion. “Our 2010 budget is K25.4 billion and our major source of revenue would be fees and charges. We expect to raise K15.4 billion from licenses, trading licenses, building permits and others.

“We also expect to raise K4.2 billion from property rates and I must inform you that Kansanshi Mine PLC has paid K1.8billion for property rates for the first quarter of 2010,” Mr Mulaliki said. Mr Mulaliki said the council would continue to strive to improve service delivery in the area and urged the people to support the council in its various operations.

He said the people in the area should not only criticise the council, but support it in its various operations so that they knew and appreciated the various problems the local authority was going through. Mr Mulaliki said the sending of auditors to various wards in the city does not mean that some councillors had squandered Ward Development Funds, but that auditors were merely sent to the councils wards to audit the work that had been done on various projects.

“Yes, it is true that auditors have been sent to wards, but this does not mean that some councillors had squandered Ward Development Funds. No councillor has squandered funds and auditors have been sent to audit the projects,” he said.

[Times of Zambia]

The Zambia Consumer Association (ZACA) has called on government to cushion consumers from the increase in the price of fuel pump price by reducing import duty on the commodity.

ZACA Executive Director Muyunda Ililonga says consumers will be badly affected by the increase in fuel pump prices as was announced by government yesterday and that the only way government could protect consumers from the effects of the hike is by reducing tax from the current 20 percent to 10 percent.

Mr Ililonga said fuel has a spiral effect on other products and therefore the increase in fuel pump price will lead to increases in the price of other goods and services.

He told ZANIS in an interview in Lusaka today that government should live up to its obligation of ensuring that consumers are spared the negative effects of the new development.

The ZACA Executive Director explained that people are likely to go through a lot of hardships as a result of the hike hence the need for government to come up with mechanisms to cushion consumers.

The Energy Regulation Board (ERB) yesterday announced an increase in fuel pump prices by 15 percent, following the board’s decision to increase prices of diesel, petrol and kerosene by 15 percent across the board.

The increase is with effect from midnight yesterday.

ZANIS

The Ministry of Agriculture and Co-operatives (MACO) says the Decentralisation Policy is bearing fruits as evidenced by the successful distribution of agricultural inputs under the Fertiliser Input Support Programme (FISP) countrywide.

MACO Director for Cooperatives Development, Mulemwa Sitwala said the decentralisation of FISP and involvement of local leadership in the distribution of farming inputs has lessened the challenges faced under the previous Fertiliser Support Programm (FSP).

Mrs Sitwala said this today when she presented a report on the status and Impact of FISP Monitoring and evaluation of Lusaka Province to Provincial Permanent Secretary, Stephen Bwalya.

She explained that the formation of Camp Agricultural Committees who are now handling the selection of Small Scale Farmers has seen a remarkable reduction in complaints from beneficiaries unlike before under the District Agricultural Committees.

Mrs Sitwala also said that the general crop outlook in the province is good despite the erratic rainfall pattern experienced in the province lately.

She added that under FISP, government has devised mechanisms that have enabled the province to receive appropriate seed varieties particularly for drought prone areas such as Kavalamanja in Luangwa District.

And Lusaka Province Permanent Secretary, Stephen Bwalya said government has placed Agriculture development as a key to economic development in the country.

Mr Bwalya has since urged youths to seriously engage in farming as a business to make a meaningful contribution towards national food security at both household and national level.

Lusaka Province has received a total of 148,000 x 50kg of both Urea and D-Compound fertilizer and 370 metric tonnes of seed for 37,000 small scale farmers for the 2009/2010 farming season.

ZANIS