Solwezi District Commissioner Albert Chifita has condemned the engagement of foreign contractors by Kansanshi Mine and has challenged the management to prove how they have improved the economic landscape in the province.

Mr. Chifita said in Solwezi that the economic development, the Kansanshi management were claiming, was actually inadequate even for Solwezi District alone.He said the ordinary villagers in Solwezi do not even feel the economic impact being talked about.

Mr. Chifita said the district does not need foreign contractors to come and do the cleaning service in Solwezi when Zambian Companies were there to do such jobs.

He said that his findings revealed that Kansanshi management did not advertise the tender nationally, but sent E-Mails to few selected companies without the knowledge of Zambian bidders.

The District Commissioner charged that there was no accountability and transparency as claimed by Kansanshi management, adding that the people of Zambia should not be cheated like children.

Mr. Chifita said the former Zambian contractors were paying their employees between K1.2 million to K2 million but the new foreign investors are paying the same workers K400,000 net.

He said when Zambian contractors are engaged there is what he called spillover effects in the economy of Solwezi because they purchase local products from local suppliers and the workers are adequately paid and spend the money locally.

Mr. Chifita observed that the foreign investors would be purchasing products from South Africa and Ghana depriving the local suppliers and they have their own offices in these countries and not in Solwezi.

Environmental Council of Zambia (ECZ) has authorized Mopani Copper Mines to resume operations of the In-Situ Leach project at its Mufulira mine site with immediate effect, board chairman Liayo Imasiku has disclosed.

Mr. Liayo told ZANIS in an interview in Mufulira after an inspection tour of the project at the Mine today that ECZ has lifted the suspension order though formation surrounding the suspension are being considered before officially writing to the mine.

Mr. Liayo said ECZ is happy with the measures put in place so far by the mines in ensuring that it meets its commitments in the environmental impact assessment.

He said the mine has now installed stand by pumps at 520 meter level where only one pump was operating instead of two.

Mopani has also put up a shed point at 430 meter level and installed PH meters at 520 meter level as other measures to enable Mulonga Water and Sewerage Company monitor the quality of underground water before distributing to the residents.

ECZ last week ordered Mopani in Mufulira to suspend operations of the In Situ Leach project following the contamination of underground domestic water that is supplied to former mine townships in the district.

On January 3, the mine experienced a pump failure at its 430 meter level that resulted in the Pregnant Liquor Solution (PLS) to spill in the underground domestic water that Mulonga Water and Sewerage Company supplies to former Mine townships.

Acting Mine Chief Executive officer Emannuel Mutati said the company is happy that the ECZ has allowed the operations of the project to go on.

Mr. Mutati added that the suspension by ECZ did not have any effect of the mine operations as it has no direct link with production

Bank of Zambia (BoZ) Governor Caleb Fundanga says there is need for government to improve road infrastructure to realize the full business potential in Eastern province.

Dr. Fundanga said the deplorable state of most roads made it difficult for the transportation of goods and services within and out of the province.

“Some parts of the Great East road, Chipata-Lundazi and the Chipata-Mambwe roads are all in a bad state though they are supposed to provide a means of transport for agricultural produce, which is the main economic activity in at the province,” he said.

Dr. Fundanga was speaking at a business dinner that was organized by Eastern Province Chamber of Commerce at Pineview Guest House in Chipata yesterday.

Meanwhile, Dr. Fundanga has called on the business community to diversify their business in anticipation of trade growth that will be brought after the completion of the Mchinji railway line.

He stated that the railway would provide business opportunities in the clearance and forwarding sector among the three countries, Malawi, Mozambique and Zambia, in the growth triangle.

He urged them to rise to the opportunity of the growth triangle and engage in the gemstone mining and tourism sectors that have not been fully explored.

“There is potential which requires to be explored in tourism and gemstone mining and this can only be enhanced with improved road network,” he said.

He stated that though agriculture provided a good business platform for people in the province, there is need to diversify into other sectors especially now when the country is experiencing the effects of climate change.

“Floods have impacted negatively on the agriculture sector hence the need for you to rise to the challenge and diversify into other sectors such as gemstone mining and tourism,” he said.

At the same function, The Bank of Zambia (BOZ) says the country needs more export ventures in terms of products and markets.
He said with more export ventures Zambia’s economy will significantly grow.

Dr Fundanga told the EPCCI members led by the organisation chairman George Chambwera and other concerned individuals that this development would be enhanced through traditional exports.

He said in November 2007, Zambia’s non traditional exports had increased by 25.6 percent to US$845.1 million from US$672.7 million recorded in 2006.

The bank’s statististics indicate that tobacco and cotton contributed significantly to the non traditional exports figures in 2005 and 2006.

“The figures will be lower after farmers opted to plant maize given the lower prices offered for their tobacco and cotton products,” Dr Funfdanga said.

He urged the business community to diversify and explore market potentials in neighbouring Malawi and Mozambique where there is reported increased trade activities among the three nighbouring countries including Zambia.

The Central Bank Governor called for production of finished local products and services to add value to exports of non traditional exports to the neighbouring countries and beyond.

He urged the business community to consider using non cash transactions that would help financial players to keep track of the level of economic activities in the province.

He therefore asked commercial banks to design products and services whose cost structures would be sustainable to the region.

” Financial institutions in general need to offer structured financing that best suits the Zambian economic climate, ” he said.

And speaking earlier, Mr Chabwera said government was a very important business partner in the the economic develoipment of the nation.

Mr Chabwera said government has over the years played a key role in the economic developmernt of the country and this was seen by the appointment of one of Zambia’s key ecomomic player, Dr Caleb Fundanga as BOZ governor six years ago.

He noted that during Dr Fundanga’s reign as Central Bank governor the country has made major economic strides such as achieving a single digit inflation, among others.

And Mr Fundanga has said it was not the central bank’s plan to remove some zeros from the kwacha notes following Zambia’s achievement of a single digit inflation.

Speaking during a question and answere session with the business community, Dr Fundanga said it was not in his immidiate plans to remove some zeros as being rumoured in some quarters.

He said BOZ would only focus at achieving its mission statement of formulating and implimenting monetary and supervisory policies that will ensure price and financial system stability in the country.

On government’s recent increase on mine tax, Dr Fundanga said the move by President Mwanawasa was in correspondence to a popular call by stakeholders to increase mineral royalty tax.

He explained that the mining consessions enjoyed by new mine owners was because most mines operated at a loss at the time of privatisation but now this has changed as most of the mines had continued to record high profits annually, which was only well for government to revise the agreements.

Dr. Fundanga was invited to the region by ECCP to familiarize himself with the economic activities in the province.

Construction works of the largest copper mine in Africa by Equinox at Lumwana have reached an advanced stage.

Northwestern Province Permanent Secretary, Jeston Mulando, who toured the mine yesterday, commended Lumwana Mine management for the infrastructure which were being put up at the mine site.

Mr Mulando said the economic out look at Lumwana was looking positive with such infrastructure.

Mr. Mulando expressed happiness that Lumwana mine had recruited the local people who included women, and trained them as drivers of the largest trucks in the world known as EUCLID.

Some of the major works being undertaken include the 5 km long converyor belt from the primary crusher to the process plant, a chemical storage shed, twin tower laboratory and a largest mill in the world.

The Permanent Secretary urged mining companies not to be scared of the recent announcement by President Levy Mwanawasa on plans to increase mineral royalties and company tax.

Mr. Mulando said mines would still make enough profit with the 47 per cent tax, adding that mining companies should partner with bio-producers to cut down on the high price of fuel.

He advised Lumwana mine to procure materials from the local people to empower them for their livelihood, adding that most of them were not in employment and not everyone would be employed in the mine.

And Lumwana Managing Director, Harry Micheal, said 320 housing units have been completed for junior workers and have targeted to construct 1,000 more houses.

Mr. Micheal said that management wanted to complete construction works on time so that by the end of June this year full production of copper commences.

He said the increase in tax was a blow to his company since they were still in construction phase.

He lamented that soon after the President’s announcement on the increase in tax by mines, Equinox had lost three million US dollars.

The Managing Director however, said he would travel to Lusaka to seek clarification from Government on the details of how they would effect the new tax regime on mines.