By JAMES KUNDA –
The International Monetary Fund (IMF) has described the Zambian Mining industry as a potential source of revenue for the country’s infrastructure and industrial development.
But the IMF, however, cautioned against over dependence on copper mining and called for economic diversification.

.David Owen

IMF deputy director for Africa David Owen said in Chingola that, as mineral production continues to rise, mining would be a potential source of revenue that can be used to finance infrastructure and industry development.
He said mining, which had historically remained a dominant earner of foreign exchange through mineral exports, would continue to be a key driver of the Zambian economy, although there was need to diversify.
IMF said it was important for Zambia to diversify its economy and not be entirely dependent on mining.
“As production is projected to ramp up, mining will be a potential source of revenue that can be used to finance infrastructure development.
“It will continue to be of direct benefit to other industries that supply the mines, however, it will also be important for Zambia to diversify the economy in order not to be dependent entirely on mining,” Mr Owen said.
Mr Owen was speaking when he and IMF resident representative to Zambia Tobias Rasmussen visited Konkola Copper Mines (KCM) in Chililabombwe.
This is contained in a statement made available by KCM public relations manager Joy Sata in Ndola yesterday.
Mr Rasmussen said investors in the mining industry and other actors such as the Government were required to find optimal solutions for the mutual benefit of mine owners and the country.
He said it would be good for all those involved in mining to continue with the expansion seen in recent times and ensure efficiency in operations to boost productivity.
“The previous increase in production has been an important driver and helped to raise income and living standards.
The important thing is to ensure continuation and also broad growth to ensure everybody benefits from mining,” Mr Rasmussen said
The two IMF officials also visited the Nchanga smelter in Chingola during their familiarisation tour and applauded KCM’s focus to maintain high safety standards.