TALKING NOTES FOR THE HONOURABLE MINISTER OF MINES AND MINERALS DEVELOPMENT HON PAUL C KABUSWE MP ON THE 2023 ACHEVEMENTS FOR MINING SECTOR TO BE HELD ON 5TH JANUARY, 2024
GOOD MORNING, LADIES AND GENTLEMEN
AT THE OUTSET, I WISH TO TAKE THIS OPPORTUNITY TO THANK YOU MOST SINCERELY FOR COMING TO COVER OUR PRESS BRIEFING, THIS MORNING AT WHICH I WILL HIGHLIGHT SOME OF THE ACHIEVEMENTS WHICH WE HAVE SCORED FOR THE MINING SECTOR AS MINISTRY OF MINES AND MINERALS DEVELOPMENT.
LADIES AND GENTLEMEN, ALLOW ME TO ONCE AGAIN WISH YOU A HAPPY AND PROSPEROUS NEW YEAR. I ALSO WISH YOU GOD’S BLESSINGS DURING THE YEAR.
I WILL ADDRESS THIS PRESS BRIEFING IN FOUR (4) PARTS AS FOLLOWS:
- MINING SECTOR REFORMS
- ISSUES OF KONKALA COPPER MINES AND MOPANI COPPER MINES PLC
- ONGOING KEY INTERVENTIONS
- OUTLOOK FOR THE MINING SECTOR
- CONCLUSION
- MINING SECTOR REFORMS
AS YOU ARE AWARE, THE UPND GOVERNMENT IN ITS MANIFESTO IS ANCHORED ON THE VISION OF HAVING A UNITED AND PROSPEROUS ZAMBIA WITH EQUAL OPPORTUNITIES ACROSS ETHNIC, RELIGIOUS AND GENDER CONSIDERATIONS, LIVING IN HARMONY IN A FREE DEMOCRATIC SOCIETY, AND THUS CARRYING FORWARD ZAMBIA’S VISION 2030.
TO THIS END, WE HAVE PROMISED IN SO FAR AS THE MINING SECTOR IS CONCERNED TO AMONG OTHERS,
- UNDERTAKE A MAJOR MINING SECTOR POLICY REFORM INCLUDING TAX AND ADMINISTRATION POLICIES REFORMS;
- ENHANCE MONITORING AND OVERSIGHT MECHANISMS AND TECHNOLOGIES TO RELIABLY ASCERTAIN THE VOLUME AND CONTENT OF MINING OUTPUT FOR TAXATION PURPOSES TO ENSURE ZAMBIANS RECEIVE THEIR FAIR SHARE;
- PROMOTE SMALL-SCALE MINING AS IT HAS POTENTIAL TO GENERATE MORE LOCAL JOBS AND SUPPORTS THE RETENTION OF EARNING WITHIN THE COUNTRY; AND
- PUT IN PLACE A POLICY AND PLAN TO FACILITATE LOCAL OWNERSHIP AND INCREASED PARTICIPATION OF ZAMBIAN PLAYERS IN THE INDUSTRY.
AS SUCH, DURING THE YEAR 2023, WE CONTINUED ON THE TRAJECTORY OF THE REFORM PROCESS RESULTING IN THE FOLLOWING:
- FORMULATION OF THE DRAFT LEGAL FRAMEWORK FOR THE MINERALS
REGULATION COMMISSION. AS I SPEAK, LADIES AND GENTLEMEN, THE DRAFT BILL AWAITS TABLING IN PARLIAMENT DURING THE LEGISLATIVE SESSION IN FEBRUARY, THIS YEAR.
- FORMULATION OF THE DRAFT GEOLOGICAL AND MINERALS DEVELOPMENT LEGAL FRAMEWORK AND IS UNDERGOING FINALIZATION BY THE MINISTRY OF JUSTICE, AND ALTER PARLIAMENTARY CONSIDERATION. THE LEGAL FRAMEWORK WILL ACCELERATE INVESTMENT IN GEOLOGICAL MAPPING, MINERAL EXPLORATION AND MINE DEVELOPMENT BY GOVERNMENT WORKING WITH THE PRIVATE SECTOR.
- LOCAL CONTENT REGULATIONS, IN LINE WITH THE MINES AND MINERALS DEVELOPMENT ACT NO. 11 OF 2015, CABINET LAST YEAR APPROVED THE ISSUANCE OF A STATUTORY INSTRUMENT AIMED AT ENHANCING PARTICIPATION OF LOCAL SUPPLIERS OF CORE MINING GOODS AND SERVICES TO THE MINING SECTOR WORTH K25 MILLION AND BELOW. BY THE SAME TOKEN, THE SI UPON BEING SIGNED WITHIN THE FIRST QUARTER OF THIS YEAR WILL RESERVE THE SUPPLY OF NON-CORE MINING GOODS AND SERVICES SUCH AS CATERING, CLEANING TO ZAMBIANS ONLY.
- MINING APPEALS TRIBUNAL, TO ENSURE THAT DISPUTES ARE RESOLVED IN AN EFFICENT AND JUDICIOUS MANNER, THE MINISTRY HAS RERQUESTED CABINET TO CONSIDER APPOINTMENT OFN THE MEMBERS OF THE TRIBUNAL. WE ARE EXPECTANT THAT BEFORE END OF THIS QUARTER THE CABINET WILL BE MADE.
- INTRODUCTION OF 4 PERCENT PRESUMPTIVE TAX FOR SMALL SCALE MINING SUBSECTOR.
TO ACCELERATE THE GROWTH OF THE ARTISANAL AND SMALL-SCALE MINING AND MAKING IT VIABLE TO CONTRIBUTE TO THE COUNTRY ECONOMIC GROWTH, GOVERNMENT HAS REVISED THE TAX REGIME FOR THE SECTOR FROM THE CORPORATE INCOME TAX OF 30 % TO NOW PRESUMPTIVE TAX OF 4 %.
- STRATEGIES ON 3 MILLION TONNES AND CRITICAL MINERALS
TO ENSURE THAT GOVERNMENT’S VISION OF ATTAINING THE 3 MILLION TONES OF COPPER ANNUALLY BY 2031, THE MINISTRY HAS DEVELOPED A STRATEGY WHICH MANY STAKEHOLDERS IN THE MINING SECTOR HAVE PROVIDE VALUABLE COMMENTS AND WELCOMED. DURING THE COURSE OF THIS QUARTER, THE MINISTRY WILL SEEK CABINET APPROVAL. THE STRATEGY HAS SPELT OUT KEY INTERVENTIONS AND ANNUAL TARGETS TO BE ATTAINED.
CRITICAL MINERALS STRATEGY, IN ORDER TO ENHANCE ZAMBIA’S PARTICIPATION AS PLAYER IN THE GLOBAL ENERGY TRANSITION THOUGH CONTRIBUTIONS TO GLOBAL SUPPLY VALUE CHAIN
- ISSUES OF KONKOLA COPPER MINES AND MOPANI COPPER MINES PLC
LADIES AND GENTLEMEN, AS YOU ARE AWARE, GOVERNMENT HAS RESOLVED THE CHALLENGES WHICH THE MAJOR MINING COMPANIES NAMELY KCM AND MOPANI.
THIS HAS BEEN IN PUBLIC DOMAIN THAT GOVERNMENT AND VEDANTA RESOURCES PLC RESOLVED TO SETTLED THEIR DISPUTE THE TWO PARTIES HAD IN COURT EXCURIA. THIS IS EXPECTED TO REVAMP OPERATIONS AT KCM THUS CONTRIBUTE TO THE ATTAINMENT OF THE 3 MILLION METRIC TONNES TARGET OF COPPER PRODUCTION BY 2031.
IN ADDITION, A STRATEGIC EQUITY PARTNER FOR MOPANI CALLED INTERNATIONAL RESOURCES HOLDINGS, A UNITED ARAB EMIRATES COMPANY HAS SINCE BEEN SELECTED. THE FINALIZATION OF THE STRATEGIC PARTNERSHIP AGREEMENT IS IN THE PROCESS OF COMPLETION.
AGAIN, THESE ARE HUGE MILESTONES TO GOVERNMENT, AND QUIET A MOMENTOUS WIN TO OUR PEOPLE ON THE COPPERBELT, IN PARTICULAR, AND IN GENERAL THE PEOPLE OF ZAMBIA, AND GLOBALLY, AS WE WILL BE ABLE TO CONTRIBUTE SIGNIFICANTLY TO THE GLOBAL ENERGY TRANSITION AND DECARBONIZATION AGENDA.
- ONGOING KEY INTERVENTIONS
DURING THE YEAR UNDER REVIEW, THE MINISTRY UNDERTOOK VARIOUS INTERVENTIONS AIMED AT RE-INVIGORATING THE MINING SECTOR IN ORDER TO ENHANCE ITS CONTRIBUTIONS TO THE COUNTRY’S GROSS DOMESTIC PRODUCT. THESE INCLUDE THE FOLLOWING:
- GEOLOGICAL MAPPING, EXPLORATION SURVEYS, AND MONITORING OF EXPLORATION LICENSES
TO INCREASE GEOLOGICAL INFORMATION TO INFORM INVESTMENT IN THE MINING SECTOR, THE MINISTRY UNDERTOOK GEOLOGICAL MAPPING IN SELECTED AREAS OF THE COUNTRY THEREBY INCREASIN GEOLOGICAL COVERAGE FROM THE NATIONAL COVERAGE OF 55.56 % TO 56.36 %.
- IN TERMS OF EXPLORATION, THE MINISTRY UNDERTOOK GEOCHEMICAL SAMPLING INVOLVING 1,400 SAMPLES IN SELECTED AREAS SUCH AS ZIMBA AND MKUSHI DISTRICT TARGETING LITHIUM, TIN AND GRAPHITE MINERALIZATION IN THOSE AREAS, WHOSE RESULTS ARE BEING ANALYZED BY OUR GEOLOGISTS.
- MONITORING OF EXPLORATION LICENSES, TO ENSURE THAT, VARIOUS EXPLORATION LICENSE HOLDERS ADHERE TO THEIR EXPLORATION PLANS, THE MINISTRY CONDUCTED INSPECTIONS INVOLVING 400 COMPANIES.
GOING FORWARD IN 2024, THE MINISTRY HAS BEEN ALLOCATED A TUNE OF K198 MILLION TO UNDERTAKE HIGH RESOLUTION COUNTRYWIDE GEOLOGICAL SURVEY WHICH WILL COVER FIVE (5) PROVINCES NAMELY COPPERBELT, NORTHWESTERN, SOUTHERN, WESTERN AND CENTRAL PROVINCES.
THE PROGRAMME IS EXPECTED TO COVER THE ENTIRE COUNTRY IN THE NEXT TWO YEARS, AND THEREBY INCREASE AVAILABLE OF GEOLOGICAL INFORMATION AND CONTRIBUTE IN INCREASED INVESTMENT IN THE MINING SECTOR.
THIS IS PHENOMENON, AND HAS NOT HAPPENED IN THE RECENT PAST IN WHICH GOVERNMENT HAS INVESTED SUCH AN AMOUNT OF MONEY IN GEOLOGICAL SURVEY.
- MINING LICENSING
TO ENSURE EFFICIENT AND EFFECTIVE MINING LICENSING REGIME, THE MINISTRY HAS DEVELOPED AND IS NOW IMPLEMENTING A SELF-SERVICE ONLINE MINING CADASTRE SYSTEM, A SHIFT FROM THE PREVIOUS MANUAL APPLICATION SYSTEM TO ONLINE APPLICATION SYSTEM, AND SOON THE SYSTEM WILL ALSO PROVIDE A MODULE TO ALLOW FOR APPLICANTS TO MAKE PAYMENTS ONLINE.
CLEARLY, THIS WILL REDUCE TIME SPENT IN APPLYING FOR MINING LICENSES, REDUCE COST OF DOING BUSINESS AND CONSEQUENTLY INCREASE INVESTMENT IN THE MINING SECTOR IN LINE WITH HIS EXCELLENCY, THE PRESIDENT OF THE REPUBLIC OF ZAMBIA MR. HAKAINDE HICHILEMA’S FOCUS ON REMOVING RIGIDITIES TO SPUR ECONOMIC GROWTH.
- FORMALIZATION OF ARTISANAL AND SMALL-SCALE MINING
IN ADDITION TO MAKING THE TAX REGIME CONDUCIVE FOR THIS SECTOR, THE MINISTRY HAS BEEN UNDERTAKING THE PROCESS OF FORMALIZING THE SECTOR FOR OUR PEOPLE TO CONTRIBUTE MEANING TO OUR ECONOMY, AS SUCH, WE HAVE LICENSED SO FAR 126 GOLD MINING COOPERATIVES AND 65 COOPERATIVES IN OTHER MINERALS OTHER THAN GOLD.
FURTHERMORE, SITES FOR CONSTRUCTION OF GOLD MARKETING CENTRES HAVE BEEN IDENTIFIED IN 7 DISTRICTS NAMELY MUMBWA, RUFUNSA, LUSANGAZI, VUBWI, PETAUKE, CHISAMBA AND CHIBOMBO. SO FAR CONSTRUCTION OF INFRASTRUCTURE FOR GOLD MARKETING CENTERS IN MUMBWA AND RUFUNSA ARE AT PROCURMENT STAGE.
WHILE TO ENSURE CAPACITY IS DEVELOPED IN THE ARTISANAL AND SMALL-SCALE MINERS, BASIC MINING EQUIPMENT WILL BE GIVEN TO THEM TO SUPPORT THE OPERATIONS.
LADIES AND GENTLEMEN, IN 2024 BUDGET AN ALLOCATION OF K131 MILLION FROM K50 MILLION IN 2023 REPRESENTING AN INCREASE OF 61.8% HAS BEEN MADE TO GROW THIS SECTOR. IN 2024, THE FORMALIZATION OF THE SUB SECTOR WILL ALSO GRADUALLY COMMENCE BE EXTENDED AND RAMPED UP TO OTHER MINERALS SUCH AS MANGANESE, TIN AND OTHERS.
- OUTLOOK FOR THE MINING SECTOR
LADIES AND GENTLEMEN, THERE IS GENERALLY A POSITIVE OUTLOOK FOR THE FUTURE OF ZAMBIA’S MINING SECTOR. THIS IS PRECIPITATED VARIOUS DEVELOPMENT BEING UNDERTAKEN BY GOVERNMENT IN THE MINING SECTOR, GLOBAL DEVELOPMENTS TAKING PLACE SUCH AS THE MANUFACTURE OF ELECTRIC VEHICLES (EVS), BATTERIES AND BATTERY PRECURSOR AND OTHER OPPORTUNITIES IN THE GREEN ENERGY TRANSITION AGENDA.
THESE DEVELOPMENTS WHICH INCLUDE REGIONAL DEVELOPMENTS PRESENTS THE COUNTRY AN OPPORTUNITY TO BENEFIT FROM THE EFFECTIVE AND EFFICIENT EXPLOITATION OF ITS MINERALS RESOURCE TO SPUR ECONOMIC GROWTH AND DEVELOPMENT.
GOVERNMENT THROUGH MINISTRY, HAS DEMONSTRATED COMMITMENT TO SUPPORT THE HIS EXCELLENCY, THE PRESIDENT MG HAKAINDE HICHILEMA IN ADVANCING SOCIOECONOMIC TRANSFORMATION FOR IMPROVED LIVELIHOODS AS ESPOUSED UNDER THE 8NDP.
AS I CONCLUDE, ALLOW ME TO REITERATE OUR COMMITMENT TO ENSURE THAT THE MINING IS ONCE AGAIN MADE AS BEDROCK OF OUR COUNTRY’S DEVELOPMENT TRAJECTORY. MY APPEAL TO THE ZAMBIAN PEOPLE IS THAT THIS GOVERNMENT HAS DEMONSTRATED ITS RESOLVE TO HANDLE THE MINING SECTOR IN A DILIGENT AND PRUDENT BECAUSE IT PLAYS A CATALYTIC ROLE IN OUR DEVELOPMENT PROCESS AS THE COUNTRY.
I THANK YOU FOR COMING TO THIS PRESS BRIEFING