Mining adding value to economy
Published On July 30, 2014 » 3006 Views» By Davies M.M Chanda » Features
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By PRISCILLA SIMUKOKO – 

THE commencement of mining activities in North-western Province has added to the growth of the national economy and given a future to the mining sector in Zambia.

As per the historical background, mining has been associated with the Copperbelt Province since the first exploitation of copper deposits in the early 1930s.

But 50 years down the line the face of the mining sector has changed tremendously.

The sector, which has been the pillar of the country’s economic and social development since independence, has seen the opening of new mines in North-western province in the last 10 years.

Three mining conglomerates, Kansanshi, Lumwana and now Kalumbila which are expected to start full operations once commissioned this year, are proving a force to reckon with in as far as mining operations in the country are concerned.

While copper production started going down in the late 1990s on the Copperbelt, the outlook of the sector was not certain, major shareholders like Anglo-American Corporation resolved to pull out of the mines creating an impression of hopelessness in the minds of majority Zambians.

Though it was at a time when copper prices were falling low on the international market resulting in low production levels, stringent measures by the Government to salvage the situation were considered.

One of the remarkable measures was the privatisation of the mining sector in the year 2000, which enabled the sector to open up for the Foreign Direct Investment (DFI).
This consequently facilitated the starting of the large-scale mineral exploitation in North-western in 2005 by First Quantum Minerals at Kansanshi mine and a year later Lumwana mine also followed suit.
It was a prayer answered to the survival of the country’s economy echoed former regional women’s league chairperson in the UNIP administration Eunice Sebele.

“North-western had been a sleeping giant for a long time. The region is endowed with mineral wealth as witnessed today.
You know the Government at that time did not have money to re-invest in the mines but we believed that a time like this will come when all eyes will be on Solwezi for economic development, we feel proud because we were thought to be backward citizens but now the mines have made us known all over,” she said

Ms Sebele said mining in the North-western part of Zambia has taken the mining sector to another dimension because the level of investment in machinery is good enough to sustain operations for many years to come.

She said “we are grateful to God for opening the biggest mines in Africa in the region.”

The development of the mines in the region has also remarkably resulted in increased national annual copper output levels from 572,792 tonnes in 2008 tomore than 800,000 tonnes in 2012 with a projection that copper production will reach 1,500, 000 tonnes by the year 2016.

This projection is based on account that the new mining projects being developed by First Quantum Minerals, at Kalumbila mines become operational in the next two years.  Another copper exploitation project by VEN Mining Limited is under way in Katoka mema area in Kasempa District which, once operational, will transform the region into another Copperbelt.

Other mining opportunities are in the gas and oil, clay ball deposits and limestone which are suitable for cement and agricultural use, when fully exploited, the minerals will help support the anticipated growth in the mining, manufacturing and agricultural sectors.

Despite changes in government administrations, the mining sector has remained stable and viable. It has attracted US$8 billion in excess of the total national exports since the year 2000 creating 74,000 jobs by 2012 from the 27,000 in jobs in 2000, out of which the region has contributed about 18,000 jobs.

Again with new projects under exploitation investment in mining sector is expected to reach US$ 15 billion by 2017 if the international metal prices hold above $7, 000 per tonne. This is besides what small scale mining is contributing.

North-western Chamber of Commerce president Josephine Makondo noted that production figures could be higher than what is recorded because small-scale mining is active in the province.

Ms Makondo said unless small-scale mining activities are tapped by the mainstream government system their contribution to the overall mineral production will remain elusive.
“It is important for government, through the ministry of mines to check what they are doing, we know it’s quite substantial, they are in business just like the big mines but how much is produced, contributed to treasury or how many jobs they have created is not known”, explained Ms Makondo.

She added that in as much as the province is endowed with minerals, there is need to take stock of the every activity in the sector because it is the back bone of the national economy and development.

But Zambia Congress of Trade Unions regional coordinator Kameya Manjomba noted that though mining activities have opened up in the region, government should take precautions not to allow mining operations at once.

Mr Manjomba stated that if this is not done, the mineral deposits would deplete fast looking at the level of production.

He said previously, the delay to fully operationalise the sector helped to preserve mineral deposits for the time as this one.

“As we look forward to the next 50 years, there should be mineral deposit reserves for future use by generations to come. There should be a deliberate measure to delay issuance of exploration licences by government as this will slow down the exploitation of minerals”, he stressed.

It is with no doubt that North-western mining has significantly rekindled the future of the mining sector.

Its contribution to national development is highly valued as evidenced by various projects being implemented by government across the country-ZANIS

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