Ready to go: Zambia's mining sector has been kickstarted with a round of oil and gas licenses issued in July. [China Daily]
Country thirsty for investment to help it bring a wealth of untapped minerals to the surface
Editor's note: Underpinned by copper, cobalt and manganese, Zambia's mining sector is arguably the country's greatest asset.
On a mission to attract investment from all corners of the globe-but especially from long-term partner China - Zambia's dynamic Minister of Mines and Minerals Development Maxwell M. B. Mwale talks to In Focus about conditions for investors and possible openings.
In Focus (IF): Could you introduce us to the state of investment conditions within the mining sector in Zambia?
Minister Mwale (MM): The key to attracting investments in mining is security of tenure. Within our legal framework, investors in the mining sector enjoy that as long as they operate within Zambian law.
Associated with that, we provide incentives like 100 percent capital allowance, competitive mineral royalties (3 percent of gross value) and corporate taxes (at 30 percent.)
The issue is why someone should come to Zambia. When you look at the region, Zambia has enjoyed peace for a long time. No investor would take his money to a place where it will go up in flames.
There is also predictability within our government, in that there is consistencey: you come, you can operate, you will not find issues of seizure of property.
We firmly believe that property ownership spears development. Anyone who comes to invest in Zambia will not experience any negative government interference.
IF: How does the government plan to break away from its dependence on copper and subsequent price volatility?
MM: We have good infrastructure in place, in terms of power, road networks and human resources, which also attracts investment.
When we talk about the diversification of the mineral base production, historically we have been known for copper and cobalt, but we are host to good emeralds and we now recognize the presence of energy minerals, such as uranium and coal.
Uranium exploration activities commenced in the late 1970s and we recently issued two licenses in the southern part of Zambia.
There is also potential for uranium mining in the north eastern and north western areas of the country. We are seeing the development of uranium mining as a way of diversifying away from copper.
Aside from that, we have manganese in the Central and Rockola provinces.
As a government, we are trying to put systems in place that will exploit those deposits for the benefit of our people by collecting more mining taxes. Most of the manganese is being exported as raw manganese, with no value addition to it. We would like to see some smelters set up to treat the manganese.
The key to diversification of the minerals we produce is exploration.
Only 52 percent of our country is geologically mapped. Even with that percentage, we believe there is a need for greater follow-up work. The full potential of minerals production in this country has not been yet realized.
1 2 Next
