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Mining & Natural Resources
While rising copper prices over the past sev-
eral years saw copper soaring to a record high of
US$8,980 per tonne in July 2008, the crisis on global
financial markets in the second half of that year sent
prices tumbling to just US$2,812 per tonne by De-
cember 2008.
The dramatic drop in the price of copper led to re-
duced earnings from copper exports by mining com-
panies and subsequent reduced earnings for the
government from mineral royalties and corporate
taxes, as well as lower levels of investments and
production. Furthermore, some mining companies
discontinued exploration activities, while Luanshya
Copper Mine and Munali Nickel Mine were placed
under care and maintenance.
Although a number of factors challenged the in-
dustry during 2009, various others have supported
its growth, particularly the commencement of com-
mercial copper production at Lumwana mine and
improved metal prices in global markets, with cop-
per prices increasing from US$3,100 to US$6,000
between January and October 2009. As a result, the
mining and quarrying sector recovered significantly
during the year from growth of just 2.5% in 2008 to
15.8% in 2009.
As of 2011 it is very encouraging to note that Zam-
bia’s mining and exploration industry has rebounded
robustly from the global financial crisis of 2008-9. In
addition, the government and Industry (both the large
and small scale sectors) together with the assistance
of various donor organizations have undertaken ex-
tremely thorough discussions and consultation over
the last eighteen months. This has already led to
the government abandonment of the controversial
corporate windfall tax and will hopefully lead to,
amongst other things, an amendment of The Mines
and Minerals Development Act 2008 by early 2011.
This should ensure the continued growth, promotion
and sustainable development of the sector for the
benefit of all stakeholders for many years to come.
GOVERNMENT’S ROLE AND POLICY
The large and small scale Mining and Exploration
Sectors in Zambia are overseen and administered
by the Ministry of Mines and Natural Resources. The
Ministry enacts mineral policy with the assistance of
its 4 departments of Geological Survey, Mines De-
velopment, Mines Safety and the Mining Cadastre
Office. Government adopts a purely regulatory and
promotional role with regard to mining activities. Min-
erals in the ground are vested in the President on
behalf of the state. The right to explore or produce
minerals is authorized by a license granted under the
Mines and Minerals Act.
In its recently published Client Service Charter, the
Ministry states its purpose is to ‘facilitate the de-
velopment of efficient, safe, viable and sustainable
mineral and petroleum resources industries for the
maximum benefit for the people of Zambia’.
In promoting growth and diversification of the mining
industry during 2010-2011, the Zambian government
is committed to continue:
• Promoting exploration in the hope that more mines
will be opened in the next five years.
• Creating a special status for non-traditional mining
exports, such as nickel, uranium, gold, and platinum,
and declaring them priority minerals under the Zam-
bia Development Agency Act.
• Promoting large investments in the mining sector
that have a transformational impact on Zambia in
terms of job creation, export earnings, supply and
contracting by the Zambian business community.
• Encouraging value addition within Zambia, mainly
involving copper, cobalt and gemstone products.
In order to encourage Zambian ownership of part
of the operating entities, the government is working
out measures to ensure that, where possible, min-
Examining exploratory samples
MinistryofMines&Mineral Development takingpart ina trade fair