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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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Zambia has a large amount of copper, emeralds and other mineral deposits, which is the basis of mining. It also has enough reserve for further future exploitation.
Mining accounts for 12 percent of the gross domestic product (GDP), which is a monetary measure of the market value of all final goods and services produced in a period [quarterly or yearly] of time while total export value stood at 70 percent in May.
Latest data from Central Statistical Office (CSO) shows that in the traditional export earnings increased by 42.6 percent from about K5.13 billion in April 2018 to over K7.30 billion in May 2018.
The share of traditional exports recorded an average of 77.2 percent in revenue earnings between May 2018 and April 2018.
During the period under review, the volume of copper exports decreased by 0.7 percentage point from 80,081.2 metric tonnes in April 2018 to 79,514.6 metric tonnes in May 2018.Currently, copper prices on the London Metal Exchange (LME), is trading at almost US$7,000 per tonne.
The mining sector is also a significant source of government revenue and formal employment, both directly and indirectly.Therefore, it is important to continue to attract investment in the sector for the country’s growth, particularly because it constitutes 62 percent of foreign direct investment.
One such effort is the recently held 8th Zambia International Mining and Energy Conference and Exhibition (ZIMEC), where stakeholders, including investors, government agencies and civil society organisations, have continued to meet to find ways of making the minerals fully contribute in revenue and the national industrial agenda.
While, the mining sector players understand Government’s drive of industrialisation, Chibuluma Mines chairman Jackson Sikamo warned the new focus on value-addition must be built on the firm foundation of a growing the extractive sector.
Undoubtedly, when mining investment declines, it is not just the mining sector that is affected but also the entire economy.
Like any business environment, the mining sector’s growth hinges on policy stability to ultimately, attract investment – Zambia can further regain its reputation as Africa’s largest copper producer.
Importantly, Zambia needs a competitive cost-reflective electricity tariff structure to reflect the true cost of power production and raising the bar for alternative energy sources to expand mining operations by various companies, which have invested in the country.
With assurance on the security of tenure, the sector is surely expected to grow and remain the mainstay of the economy that benefits all Zambia.
And Chamber of Mines president Nathan Chishimba commends the continued investments by various member companies.
Anchored on theme Zambia’s attractiveness as a mining destination cannot be over emphasised as delegates heard how the country is endowed with incredible mineral wealth, yet international investors were not “beating down the door” to develop these resources.
But Government is not sitting idle to harness the opportunities that lay in the mining sector, as the Chamber of Mines president observed.
Brigadier-General Chola said stakeholders tasked with refining the report have made tremendous progress in finalising the study and by end of August it will be ready for consideration by various interest groups.
Recently, mining companies had their tariffs reviewed to US$0.9 cents a kilowatt hour from an average US$0.6 cents a kilowatt hour after the country revised tariffs by 75 percent, done in two phases May 15 and September 1, 2017.
The mining sector in Zambia for the past 100 years shows a clear historical link between levels of mining investment and wider economic development.
