ZAMBIA'S LEADING INDEPENDENT NEWSPAPER
FYI.
THE POST, No. 727, MONDAY EDITION, MAY 19, 1997
News
Zambia's copper reserves ranked fifth in the world, by Joe Kaunda
Zambia's copper ore reserves have been ranked fifth in the world while its current production rating now stands at seventh among all the 11 world copper producers, Clive Newall, director of a mining prospecting company has disclosed.
Newall, of First Quantum Minerals Limited, observed last Thursday at the just ended two day investment conference organised by Financial Times Conferences in Lusaka that production of minerals had dropped due to lack of re-investment in mining operations.
He told delegates, during his presentation on "Prospects of Investing in Mining", that despite the drop in production, Zambia still had vast copper and cobalt reserves. He attributed the declining production figures to the mining conglomerate's reluctance to finance
further mineral exploration works.
"Since nationalisation in 1969 there has been a dearth of finance available to delineate further reserves or to finance changes in mining as and when they became necessary," Newall said in his
presentation, and further explained that: "The international community has fully recognised that the decline in copper and cobalt production from the Copperbelt is not solely due to depletion of reserves."
Newall added that the earlier restricted foreign exchange controls had adversely affected the procurement of explosives, spare parts and machinery hence the drop in production. He told delegates that the investment environment in the mining sector had now become competitive
especially with favourable corporate tax and additional incentives such as the zero rating of copper and cobalt sales for Value Added Tax purposes.
He added that the mining sector had started recording positive strides following increased mineral prospecting expenditure resulting from the influx of investors. "As the mines minister Gen. Christon Tembo said recently, 20 foreign companies spent US$20 million in 1996 compared with only US$2 million in 1991," Newall said.
And last Wednesday, during the official opening of the conference, President Frederick Chiluba disclosed that the mining conglomerate despite being the country's largest privatisation bound asset
was not a "sacred cow" and would be disposed of like all state owned enterprises. He however told delegates that a slight delay in the anticipated fast pace of the mines' privatisation
was expected as it involved the sale of vast holdings which needed careful unbundling. |
