Zambia President Levy Mwanawasa held talks on Wednesday with mining union leaders and agreed steps to prevent strikes in the industry after industrial action he said might discourage new investment, officials said.

The country’s mines minister separately announced that the government had drafted a policy that would enable Zambians to buy shares in the vast copper and cobalt mines, the southern African country’s economic lifeblood.

Mwanawasa met Mine Workers Union of Zambia (Muz) leaders at the presidency in a bid to defuse tensions in the copper mines where workers have been demanding higher wages, which some managers of foreign-owned mines have described as “outrageous”.

The demands come as copper mines are making huge profits thanks to a boom in global metals prices.

“We held cordial discussions with the president and presented our views on the recent strikes because sometimes we (unions) are accused of inciting workers to strike. We want to prevent future strikes through dialogue,” Oswell Munyenyembe, secretary of the Muz, told Reuters.

“These (preventive) measures involve all the mines in Zambia,” he said, but declined to give further details.

Munyenyembe said the unions also raised labour problems in mining although Mwanawasa had called the meeting to discuss the recent strike at Kansanshi copper mine, a unit of First Quantum Minerals , where a four-day strike paralysed operations in July.

Mwanawasa’s spokesman, John Musukuma, said Mwanawasa would direct the ministries of mines and labour to look into the labour issues.

“The ministries of mines and minerals development and labour and social security (will) take steps in order to facilitate a process of dialogue between the employees and management in order to avoid a recurrence (of strikes),” Musukuma said in a statement.

Mines minister Kalombo Mwansa told journalists from state media that the government would soon approve a new law to allow Zambians to purchase shares from the copper mines.

Some foreign owned mines such as Mopani Copper Mines (MCM), a unit of First Quantum and Glencore International AG of Switzerland have already indicated they want to list shares on the Lusaka Stock Exchange.

Zambia should reduce annual inflation to five percent in 2007 from 8.2 percent the previous year, aided by higher global metal prices and a domestic food surplus, the central bank said on Tuesday.

Bank of Zambia (BoZ) governor Caleb Fundanga also said the country’s economic indicators were positive ahead of the International Monetary Fund’s (IMF) review of performance in the third quarter of the year.

Fundanga said inflationary pressures would ease on the back of a build-up in strategic food reserves, exchange rate stability due to increased foreign exchange earnings mainly from copper, as well as lower money supply growth in the first half of the year.

“We should be able to attain the 5.0 percent inflation target because the economic conditions are favourable,” Fundanga told Reuters, warning however that higher world oil prices might add some pressure.

The IMF review will determine whether the global fund endorses a new poverty reduction growth facility (PRGF) when the current $320 million lending programme agreed in June 2004 expires in September.

Zambian officials are optimistic that favourable economic developments in the southern Africa country augur well for a fresh PRGF loan.

Annual inflation quickened to 11.2 percent in July from 11.1 but is expected to progressively slow down in the second half of the year as domestic maize prices decline on improved supply.

Gross domestic product expansion is seen higher at 6.0 percent in 2007 from 5.8 percent the previous year.

In a separate statement, Fundanga said domestic credit declined by 7.7 percent to 5,996 billion Zambian kwacha in the second quarter of 2007, due to a 31.7 percent decline in lending to the central government.

The kwacha currency, which depreciated by 3.0 percent in the first three months of the year, had gained 8.4 percent to 3,904 versus the U.S dollar due to increased supply of foreign exchange on the market during the second quarter, he added.

“The merchandise earnings rose to $1,037.2 million in the second quarter of 2007 from $822.3 million in the first quarter. This was mainly explained by buoyant growth in both metal and non-metal export earnings,” Fundanga said.

The country’s balance of payments surplus had risen to $106.8 million in June from $70.4 million in March, while a $254.9 million trade surplus was recorded, he added.

The Lusaka High Court on Monday cleared Finance Minister Ng’andu Magande of corruption charges levelled against him by two losing candidates in last year’s parliamentary elections.

Magande was facing 62 charges of graft which Priscilla Kamanga of the chief opposition Patriotic Front (PF) party and Cosmos Moono of the United Party for National Development (UPND) brought before the court in Zambia’s most contentious and highly publicised parliamentary petition.

Economic analysts had feared a serious economic management backlash if Magande had lost the case.

He is credited with the fiscal discipline which has seen a turnaround in Zambia’s economic performance, with GDP growth averaging 5 percent in the last five years in Zambia, where mining is the economic lifeblood.

High Court Judge Marvin Mwanamwambwa threw out all 62 allegations that Magande and his election agents bribed voters to win the vote in an opposition stronghold. The court said he was duly elected as a legislator.

“I have found that there was no bribery and corruption as defined by the Electoral Act,” Mwanamwambwa said in his ruling.

He said the few irregularities which had been proven did not warrant the nullification of Magande’s election victory.

“In my view honourable Magande won the election because the opposition (candidates) split the vote among themselves. He did not win because of (allegations of) rampant corruption and bribery,” Mwanamwambwa said.

Magande said Zambia should put the elections behind it and focus on serious challenges.

“We can now forget about the elections and this will help me to focus on making sure we work hard to address the most pressing issues of poverty alleviation and finding improving the economic environment,” he told Reuters after the ruling.

President Levy Mwanawasa has directed Local Government and Housing Minister, Sylvia Masebo, to exempt the church, schools and clinics from paying rates in appreciation of the great contribution the church is making in augmenting government effortf of improving the economic welfare of the people.

President Mwanawasa has further directed, Ms Masebo to favourably consider the
church’s request for rate exemption for specific educational youths skills
institutions and other social institutions because the church was serving people on
behalf of government.

He said without the church’s valuable contribution, government alone would not have
achieved as much as it has done, citing health institutions run by the church among
them; St Francis and Mumbezhi in Solwezi, Chinyingi in Zambezi and Ntambu in
Mwinilunga which, he said are because they are located in places where government
health institutions were not easily accessible.

Mr Mwanawasa commended the church for its efforts in fighting and mitigating the
effects of HIV/AIDS through home based care and the orphans and vulnerable children
programmes that have provided love, care and support.
       
He said without such interventions many children would have dropped out of school,
hence urged the church and government to continue working together for the benefit
of people of Zambia.
       
President Mwanawasa said this in Solwezi today during the consecration and
installation of Reverend Fr. Alick Banda as new Bishop of Solwezi Diocese by
Archbishop Nicola Girasoli, the Apostolic Nuncio to Zambia and Malawi to  succeed
Bishop Noel Charles O’Regan who was transferred to Ndola Diocese in September 2004.
        
Meanwhile, President Mwanawasa said government was worried at the high levels of
illiteracy in North-Western Province and as such it did not hesitate to surrender St
Francis in Solwezi, St Kizito in Mwinilunga, Chiwezi in Kabompo and Chinyingi basic
schools in Zambezi to the church when it requested.
       
He also said while government has taken note of the position of the church in the
constitution making, it was committed to ensure that the people of Zambia are given
a people-driven constitution that will stand the test of time.

He said government’s role was to give advice and direction on the process and its
logistics which he said required proper planning and careful attention to deal in
order to avoid costly mistakes.
      
Mr Mwanawasa further, reiterated government’s commitment to have all districts in
the province connected to the national grid, saying currently government was looking
at the possibility of working together with missionaries at Kaleni so that
Mwinilunga district could benefit from the Zengamina hydro-power station
commissioned two weeks ago at Kaleni in Mwinilunga.
      
Speaking at the same occasion, Zambia Episcopal Conference Chairperson, Arch Bishop
Telesphore Mpundu commended President Mwanawasa for expressing government’s
commitment in Working with the church in building peace and unity in the country.
       
And Archbishop Nicola Girasoli urged newly installed Bishop of Solwezi Diocese,
Alick Banda to promote unity among the clergy and others through reconciliation and
dialogue.

Chief Government Spokesperson, Mike Mulongoti, is happy that  First Republican President, Kenneth Kaunda, has not reacted sharply to the story published in one of the daily tabloids that alleged that President Levy Mwanawasa issued disparaging remarks against him.

Mr Mulongoti said Dr Kaunda’s decision to remain mute over the issue despite the
running public comments on the matter clearly demonstrates that he is true
statesmanship.

He said this in Kitwe yesterday when he addressed journalists after touring the
Zambia News and Information Services Offices (ZANIS).

He said Government was grateful that the Dr Kaunda had not responded to the story as
a true Statesman.

The minister said there was need for some members of the opposition Political
Parties and other stakeholders to allow the former President to concentrate on his
HIV AIDS crusade and not cheap politics.

Mr Mulongoti also regretted that some people that where celebrating at the time Dr
Kaunda was incarcerated in Kabwe some years back were now talking of respecting him
and shedding crocodile tears over his problems.

He added that it was also disappointing to note that people, who were supposed to
accord President Mwanawasa a benefit of doubt when such matters arise, where in the
fore front to create tension between him and the former Head of State.

He challenged all those people that were condemning President Mwanawasa over the
issue to gather courage and withdraw their statements against him now that the truth
had come out.

President Mwanawasa has since expressed dismay with the reports in the media where
he is quoted as having attacked first Republican President saying the Article was
based on hear say.

He indicated that the report by the post was also unethical as the meeting quoted
was a closed door party executive meeting and the Post Journalist wrote the article
based on hear-say because no journalists attended the meeting.

President Levy Mwanawasa says he will not be deterred in his development vision by people bent to criticise developmental programmes being implemented by his administration.

The president said the development of north western in particular, would remain
priority on the national development agenda due to the value derived from the area
in developing the overall national economy.

Mr. Mwanawasa said in line with the development agenda, government has focused
resource allocation towards the improvement of the road network, as a measure of
facilitating the smooth implementation of developmental projects, in north western
province.

The president was speaking in a speech read for him by Transport and Communications
Minister Sara Saifwanda at the Ukupupa traditional ceremony of the Lamba people.

Mr. Mwanawasa disclosed that government has released K43.8 billion for the
rehabilitation of the 120 kilometre stretch of the Solwezi/Kipushi Road an
additional K31 billion for the Solwezi/Chingola Road.

He further indicated that US$180,000 has been disbursed towards the rehabilitation
of the Solwezi Mwinilunga Raods.

The president further disclosed that government has released K30 million for the
drilling of boleholes at Senior Chief Kalilele and Lwamakanda and an additional K200
million for the construction of the Lamba High school in Solwezi district.

Speaking at the same occassion, Ukupupa Organising Committee Chairperson, Kilinima
appealed to president Mwanawasa to consider giving Mushindamo a district status due
to its rapid economical growth.

And in passing a vote of thanks, Chief Mukumbi of the Kaonde people called on
government to put to an end casualisation of labour at Kansanshi and other mining
firms in the province.