PRESS STATEMENT BY THE HONOURABLE MINISTER OF MINES AND MINERALS DEVELOPMENT, HON. PAUL C. KABUSWE, (MP)

PRESS STATEMENT BY THE HONOURABLE MINISTER OF MINES AND MINERALS DEVELOPMENT, HON. PAUL C. KABUSWE, (MP)

• THE PERMANENT SECRETARY, MINISTRY OF MINES AND MINERALS DEVELOPMENT, DR. HAPENGA M. KABETA,
• PRESIDENTS OF UNIONS IN THE MINING INDUSTRY
• DIRECTORS PRESENT,
• DISTINGUISHED MEMBERS OF THE PRESS,
• LADIES AND GENTLEMEN,

I WOULD LIKE TO WELCOME YOU ALL AND WISH TO THANK YOU FOR TAKING TIME OFF YOUR BUSY SCHEDULES TO ATTEND THIS IMPORTANT PRESS BRIEFING ON A NUMBER OF ISSUES MY MINISTRY IS ADDRESSING.  IT IS OUR DESIRE TO UPDATE YOU ON A NUMBER OF TOPICAL ISSUES AND THROUGH YOU COMMUNICATE THE SAME TO THE PEOPLE OF ZAMBIA.

1. MOPANI COPPER MINE (MOPANI)YOU MAY WISH TO KNOW THAT MOPANI IS AN ASSET OWNED BY THE PEOPLE OF ZAMBIA THROUGH ZCCM-IH.

• YOU ARE ALL AWARE OF CHALLENGES WE HAVE HAD WITH MOPANI FOLLOWING THE DEPARTURE OF GLENCORE AND TAKING OVER OF THE ASSET BY ZCCM-IH.
• WE HAVE BEEN LOOKING FOR A NEW INVESTOR IN MOPANI OVER THE LAST HALF OF THE YEAR.
• FROM FOUR BIDDERS, WE RECEIVED NON-BIDING OFFERS IN APRIL/MAY AND RECEIVED PRESENTATIONS FROM BIDDERS.
• AS OF MONDAY 10TH JULY 2023, THIS WEEK WE RECEIVED BIDDING OFFERS FROM THE BIDDERS.
• IT IS THE INTENTION OF GOVERNMENT TO CLOSE THE DEAL BY 31ST JULY 2023.
• GOVERNMENT WILL INFORM THE NATION OF THE SUCCESSFUL BIDDER AFTER THE EVALUATION OF THE BINDING OFFERS.

2. KONKOLA COPPER MINES (KCM)

• THE PEOPLE OF ZAMBIA MAY WISH TO KNOW THAT THE SHAREHOLDING STRUCTURE IN KCM IS 80% VEDANTA RESOURCES (VR) AND 20% ZCCM-IH.
• FOLLOWING THE DEPARTURE OF VR IN 2019, THE PROVISIONAL LIQUIDATOR TOOK OVER THE MANAGEMEBNT OF KCM.
• WHEN THE NEW DAWN GOVERNMENT TOOK OVER IN AUGUST 2021, IT WAS FOUND TO BE UNSUSTAINABLE BECAUSE OF LITIGATIONS AGAINST THE GOVERNMENT IN ZAMBIA AND THE BRITISH COURTS.
• GOVERNMENT DECIDED TO RE-ENGAGE VR AS THE 80% SHAREHOLDER TO INVEST IN THE MINE AND AGREE THE TERMS AND CONDITIONS OF ENGAGEMENT.
• THE GOVERNMENT AND VR WERE NEGOTIATING OVER TEN KEY ISSUES THAT NEEDED TO BE RESOLVED BEFORE VR COULD TAKE OVER THE KCM ASSET.
• SO FAR ONLY ONE MATTER IS STILL OUTSTANDING BUT A VERY IMPORTANT MATTER TO ENSURE THAT THE INTERESTS OF THE PEOPLE OF ZAMBIAN ARE PROTECTED. WE HOWEVER HOPE THAT THE MATTER WILL BE RESOLVED WITHIN THE MONTH OF JULY AND THE CITIZENS WILL BE INFORMED ACCORDINGLY.
• WE WISH TO ASSURE THE PEOPLE OF ZAMBIA THAT THE GOVERNMENT IS COMMITTED AND DEDICATED TO THE PROTECTION OF THEIR INTERESTS. WE SIMILARLY WANT TO RESOLVE THE ISSUE BUT NOT AT ANY COST.

3. KASENSELI GOLD MINE (KGM)

• THE MINISTRY OF MINES AND MINERAL DEVELOPMENT SUSPENDED THE EXPLORATION LICENSE OF ZAMBIA GOLD COMPANY(ZAMGOLD) FOR VARIOUS VIOLATIONS OF THE CONDITIONS OF THE LICENSE AMONG THEM ILLEGAL MINING THAT WAS TAKING PLACE WITHIN THE TENEMENT.
• THE NEGOTIATIONS BETWEEN THE PARTIES ARE PROGRESSIVE AND SHOULD BE CONCLUDED BEFORE THE END OF JULY 2023.

4. SUGILITE – LUAPULA PROVINCE

• YOU MAY WISH TO KNOW THAT THE SUGILITE IS A GEMSTONE RECENTLY DISCOVERED IN MANSA. THE OCCURANCE OF SUGILITE HAS BEEN FOUND IN TWO LOCATIONS SO FAR AND THERE IS POSSIBILITY THAT IT COULD BE FOUND IN MORE THAN TWO LOCATIONS.

• WHILE SUGILITE HAS BEEN WIDELY REPORTED IN THE MEDIA, THE EXTENT OF THE RESOURCE ENDOWMENT BASE HAS NOT YET BEEN FULLY ESTABLISHED.

• MY MINISTRY IS DEVELOPING A COMPREHENSIVE STRATEGY TO GUIDE THE RESPONSIBLE AND SUSTAINABLE MANAGEMENT OF EXPLORATION AND EXPLOITATION OF THIS PRECIOUS MINERAL FOR THE BENEFIT OF ZAMBIAN CITIZENS. TO ENSURE EFFECTIVE MANAGEMENT OF THESE PRECIOUS MINERALS, GOVERNMENT THROUGH MY MINISTRY IS ALREADY UNDERTAKING ACTIVITIES THAT WILL BE IN THE STRATEGY BEING DEVELOPED.

• SUGILITE AND OTHER SIMILAR MINERALS ARE CRITICAL MINERALS WHOSE EXPLOITATION WILL REQUIRE THE FULL PARTICIPATION OF THE STATE.

• THE NATION WILL BE INFORMED AS SOON AS THE GEOLOGISTS COMPLETE THEIR WORK.

5. ARTISANAL AND SMALL-SCALE MINING (ASM)

• CITIZENS WILL RECALL THAT IN THE RECENT PAST, THERE HAS BEEN REPORTED ILLEGAL MINING ACTIVITIES IN CENTRAL, EASTERN, LUAPULA, MUCHINGA AND NORTHERN PROVINCES IN THE COUNTRY.

• THE MINISTRY IS IMPLEMENTING VARIOUS ACTIVITIES WHICH ARE AIMED AT FORMALIZING THE ASM SUB SECTOR. THE IDEA IS TO PROMOTE THE PARTICIPATION OF ZAMBIANS ACROSS THE MINING VALUE CHAIN IN A FORMALIZED MANNER.

• THE MINISTRY HAS EMBARKED ON THE PROCESS OF FORMALIZING THE ILLEGAL MINING ACTIVITIES THROUGH THE FORMATION OF MINING COOPERATIVES TO ENCOURAGE THE ILLEGAL MINERS TO CONTRIBUTE TO THE NATION’S DEVELOPMENT THROUGH THE PAYMENT OF TAXES.

• I AM THEREFORE HAPPY TO REPORT TO THE NATION AT LARGE THAT MY MINISTRY HAS BEEN WORKING WITH VARIOUS INSTITUTIONS AND MINISTRIES SUCH AS THE MINISTRY OF SMALL AND MEDIUM ENTERPRISES AND MINISTRY OF COMMERCE TRADE AND INDUSTRY, AND MINISTRY OF INFRASTRUCTURE, HOUSING AND URBAN DEVELOPMENT TO HELP FORMALIZE THE OPERATIONS OF THE SECTOR.
• SO FAR, A TOTAL OF 52 MINING COOPERATIVES HAVE BEEN REGISTERED BY THE MINISTRY OF SMALL AND MEDIUM ENTERPRISE DEVELOPMENT.
• THE TOTAL NUMBER OF LICENSES APPROVED FROM NOVEMBER 2022 TO JULY 2023 BY TYPE OF LICENSES IS AS FOLLOWS:

 

Type of license	Total Number as at July 2023
LML	19
LEL	453
SEL	380
SML	74
AMR	271
MPL	20

Please note that, out of 271 Artisanal Mining Rights, 50 mining rights were awarded to cooperatives.

6. MINERALS REGULATION COMMISSION

• I WISH TO REITERATE THAT MY MINISTRY IS UNDERTAKING INSTITUTIONAL REFORMS AIMED AT ENHANCING THE REGULATION OF THE MINING SECTOR.

• ONE OF THE KEY REFORMS WE ARE IN A HURRY TO IMPLEMENT IS THE ESTABLISHMENT OF AN INDEPENDENT MINING REGULATOR, THE MINERALS REGULATION COMMISSION.

• THE ESTABLISHMENT OF THE COMMISSION HAS COME AT AN APPROPRIATE TIME WHEN THE SECTOR IS CHARACTERIZED WITH LAWLESSNESS AND ILLEGALITY. THE REGULATOR WILL CERTAINLY ENHANCE MONITORING AND REGULATION OF THE SECTOR AS ITS PRESENCE WILL BE IN EVERY PLACE WHERE MINING ACTIVITIES ARE TAKING PLACE.

• IN ACTUALIZING THE ESTABLISHMENT OF THE MINERALS REGULATION COMMISSION, YOU MAY WISH TO KNOW THAT THE MINISTRY DEVELOPED THE ENABILING LEGISLATION. SO FAR, THE DRAFT LEGAL FRAMEWORK HAS BEEN FINALISED AND IS WITH THE MINISTRY OF JUSTICE IN READINESS FOR SUBMISSION TO CABINET AND INTURN FOR PRESENTATION TO PARLIAMENT.

7. THREE (3) MILLION TONNES STRATEGY

• THE MINISTRY HAS ALSO DEVELOPED A DRAFT STRATEGY AIMED AT PROVIDING GUIDANCE ON HOW TO ATTAIN THE 3 MILLION TONNES OF COPPER PRODUCTION IN THE NEXT 9 YEARS FROM THE CURRENT AVERAGE OF 800, 000 TONNES.

• THE KEY PRIORITY IN ATTAINING THIS MARK IS THE GEOLOGICAL MAPPING AND MINERAL EXPLORATION. GOVERNMENT THROUGH MY MINISTRY WILL BE WORKING WITH THE PRIVATE SECTOR PLAYERS AND OTHER INVESTORS TO ENHANCE COPPER PRODUCTION FROM BOTH THE BROWNFIELDS AND GREENFIELD PROJECTS.

• TO RAMP UP PRODUCTION OF COPPER, IT IS URGENT AND IMPORTANT THAT THE ISSUES SURROUNDING MOPANI AND KCM AS STATED ABOVE ARE ADDRESSED EXPEDITIOUSLY, SO THAT THEY START CONTRIBUTING TO INCREASING COPPER PRODUCTION TOWARDS 3 MILLION TONNES ANNUAL PRODUCTION TARGET.

• WE BELIEVE THIS IS ACHIEVABLE.

8. CONDITIONS PRECEDENT TO THE 3 MILLION TONNE STRATEGY

• GOVERNMENT IS INVESTING IN THE ACQUISITION OF GEOLOGICAL INFORMATION TO ACHIEVE AN ANNUAL PRODUCTION OF 3 MILLION TONNES.

• GEOLOGICAL INFORMATION WILL ALSO HELP THE COUNTRY KNOW THE SPECIFIC AREAS AND POTENTIAL RESOURCE QUANTUM OF VARIOUS MINERALS IN ZAMBIA OTHER THAN COPPER.

• THE MAPPING TO BE CONDUCTED WILL FURTHER SEIZE THE OPPORTUNITY PRESENTED BY THE ENERGY TRANSITION, AND THE MINISTRY HAS ALSO DEVELOPED A DRAFT STRATEGY ON LITHIUM AND OTHER CRITICAL MINERALS.

• THE WINDOW FOR GEOLOGICAL MAPPING AND EXPLORATION IS FROM MAY TO NOVEMBER EACH YEAR. WE SHOUD BE GETTING VERY BUSY WITH COUNTRY WIDE GEOLOGICAL MAPPING AND EXPLORATIONS.

LADIES AND GENTLEMEN,

• AS I CONCLUDE, I WISH TO INDICATE THAT, THE PROSPECT FOR THE MINING SECTOR LOOKS POSITIVE AND GOVERNMENT IS COMMITTED TO SEEING TO IT THAT THE MINING SECTOR’S CONTRIBUTION TO GROSS DOMESTIC PRODUCT (GDP) INCREASES TO PROMOTE ECONOMIC SOCIAL WELL-BEING OF ZAMBIANS.
• WITH ALL THESE INTERVENTIONS, WE ENVISAGE TO CONTRIBUTE TO INCREASED FORMAL AND SUSTAINABLE JOBS FOR THE PEOPLE OF ZAMBIA IN LINE WITH THE 8TH NATIONAL DEVELOPMENT PLAN.
• IN THIS REGARD, THE MINISTRY WILL CONTINUE IMPLEMENTING VARIOUS POLICY AND LEGISLATIVE MEASURES AIMED AT MANAGING THE SECTOR IN A SUSTAINABLE MANNER AND FOR THE BENEFIT OF PRESENT AND FUTURE GENERATIONS.

I THANK YOU.