IN last week’s article, the discourse extensively looked at the background of the Lower Zambezi mining project.
The purpose of this article is therefore to now delve into the clear effects of the decision on nature conservation, climate change effects and the pursuit of a tourism-led economic growth.
When all is said and done, it will be incomplete to conclude this discourse without looking at the lessons that the lower Zambezi mining project presents on the nation’s strategic management competences, its strategic leadership and so forth.
So far, it’s crystal clear now that it’s not the High Court or Supreme Court ruling that gives a go ahead to the lower Zambezi mining project.
Once again, the ministerial statement on the status of Kangaluwi copper project in lower Zambezi national park by then minister of Mines and Minerals Development Richard Musukwa, on November, 17 2019 provides this discourse with evidence that the High court and Supreme Court ruling does not automatically compel the Zambian Government to give a go ahead to this project.
The hard truth is also that not all the decision was made by the previously Patriotic Front (PF) Government, if the decision goes ahead, then the UPND New Dawn government will have played the critical remaining part of authorising the decision.
For now, let’s go back to an extract of the ministerial statement:
“Sir, notwithstanding the High Court ruling, mining activities will not proceed because in accordance with the Environmental Management Act, Mwembeshi Resources Limited was required to commence the implementation of the project within three years from the date of approval.
The company’s failure to commence the project within the required time frame rendered the authorization invalid.
Therefore, Mwembeshi Resources Limited is now required to resubmit the environmental and social impact assessment report for consideration by the Minister of Tourism and Arts.
Mr Speaker, it is through these processes that the project in the Lower Zambezi National Park will be assessed to determine whether to proceed or not. ”
Having established this crude reality, it entirely rests on Republican President Hakainde Hichilema to make a landmark decision to authorise the Kangaluwi –Lower Zambezi mining project or not!
What are the effects of the decision to go ahead with the mining project?
World Wide Fund for Nature (WWF) Country Director, Nachilala Nkombo, says “Tourism establishments in the park and the surrounding areas employ more than 1 000 local people, and generates a local wage bill of $4 million annually thereby indirectly supporting thousands of people at a local community level.”
Ms. Nkombo further says, “If the Kangaluwi mining project ultimately goes ahead, it will not only risk contaminating water for communities in Zambia and Zimbabwe, but for the whole Zambezi delta, thereby potentially destroying farming and fishing livelihoods and one of the largest tourism destinations for Zambia, Zimbabwe and Mozambique. ”
“River pollution caused by the mine could also inevitably threaten the Zambezi river’s 2 000-ton subsistence fishery, which directly provides food and protein security to an estimated 20 000 people along the river’s banks.” Ms. Nkombo said.
Remarkably, it’s important to note that this project will be located right in the middle of the national park, thereby bisecting the Important Bird and Biodiversity Area (IBA).
That aside, the country has in the recent years been ravaged by the El Niño – a climate pattern that is characterised by unusual droughts over the region.
On 9 September 2019, Former Secretary to the Cabinet and then Zambia Atomic Energy Agency (ZAMATOM) Director-General, the late Dr. Rowland Msiska revealed that the effects of the El Niño resulted in an adverse Fiscal Performance in the 2015/2016,
This further resulted in the Zambian Government spending an unbudgeted US$39million on emergency power imports by the Treasury in 2015.
The drought persisted and worsened in 2018/2019 season.
Following on only last month Zambia feared a possible extension of the effects of a deadly moderate tropical storm Ana!
Ana is a deadly tropical cyclone that affected the African nations of Madagascar, Malawi and Mozambique and the effects were feared to reach certain parts of Zambia.
What does all this have to do with the Kangaluwi mining project?
Obviously, this clearly shows increasing trends towards droughts, floods emanating from effects of global warming patterns!
Does it make sense for the nation to encourage mining in light of the Ana, and El Niño experiences?
That aside, let’s look at the nation’s strategic management competences – of course not what it has, but what it has been exhibiting or demonstrating in its long term strategic decisions!
In fact, what’s the use of having a highly touted national strategic management or leadership resource with little or nothing to show for it?
Zambia has been and is clearly continuing to exhibit significant symptoms of the Dutch disease – the resource curse!
Being endowed with plenty natural resources but repeatedly making poor economic decisions which inevitably make it perpetually continuing to wallow in poverty.
Just hardly a year ago, the nation was treated a movie-like drama when former Mopani Copper Mine (MCM) chief executive officer (CEO) Nathan Bullock was intercepted by police and immigration officers at the Kenneth Kaunda International Airport (KKIA) in Lusaka, as he was attempting to flee the country.
Some readers may say, that was two years ago.
Yes, it was, but look at the recent scenario where the country is still bickering to authorise a mining project to an investor who has repeatedly failed to meet conditions, deadlines and the like!
In strategic management terms, strictly that – what does this indicate?
Look at the Konkola Copper Mines (KCM) saga, the sale of the mine to Vedanta Resources Limited!
Think of it, Anil Agarwal seven years ago mocked Zambia on how he bought KCM for just $25 million and was spinning a billion dollars every year out it!
Who else will have to mock Zambia, if the Kangaluwi mining project goes ahead?
Why all this?
Besides, the importance of nature conservation, tourism development, and climate change effects arguments against the Kangaluwi mining project what does the decision, the processes, flaws and so forth indicate on the nation’s ability to prudently manage mining investors.
The WWF corporate leader notes that Zambia has previously missed it on decisions to allocate concessions, mining licenses and other agreements and hopes that President Hakainde Hichilema’s New Dawn Government will make a difference – starting with the Lower Zambezi Mining project decision.
She notes that these have in the past been done centrally, without extensive consultations with critical stakeholders including traditional chiefs.
Look at the above case study – a mining license was issued to Mwembeshi Resources Limited (MRL) without the prior clearance from the Zambia Environmental Management Agency (ZEMA), blame games, and all that!
For comments e-mail: ntumbograndy@yahoo.com Mobile +260977403113 +260955403113
The author is the Managing Consultant at G. N Grant Business Consultant, a Chartered Certified Accountant (ACCA), a Master of Business Administration (MBA) holder, with a Specialism in Strategic Planning, and a candidate for the Herriot Watt University (Scotland) Doctor of Business Administration (DBA)