MINISTERIAL STATEMENT ON THE LATEST DEVELOPMENTS IN THE MINING SECTOR

BY

HONOURABLE PAUL C. KABUSWE, MP

MINISTER OF MINES AND MINERALS DEVELOPMENT OCTOBER 2024

MADAM SPEAKER,

I THANK YOU FOR ACCORDING ME THIS OPPORTUNITY TO ADDRESS THE HOUSE AND INDEED THE NATION AT LARGE ON THE LATEST DEVELOPMENTS IN THE MINING SECTOR.

MADAM SPEAKER,

THE MINING INDUSTRY IN ZAMBIA HAS CONTINUED TO PLAY A CENTRAL ROLE IN BOLSTERING THE COUNTRY’S SOCIO-ECONOMIC DEVELOPMENT. THIS IS EVIDENCED BY THE SECTOR’S CONTRIBUTION TO THE COUNTRY WHICH INCLUDE THE GROSS DOMESTIC PRODUCT AND FOREIGN EXCHANGE EARNINGS.

MADAM SPEAKER,

THE MINING SECTOR IN ZAMBIA IS UNDERGOING A SIGNIFICANT TRANSFORMATION DRIVEN BY A SERIES OF POLICY REFORMS, STRATEGIC INVESTMENTS AND EXPLORATION ACTIVITIES. THIS IS AIMED AT HARNESSING THE COUNTRY’S VAST MINERAL RESOURCE ENDOWMENTS. THESE EFFORTS ARE A CLEAR TESTAMENT OF GOVERNMENT’S COMMITMENT TO REINVIGORATING THE SECTOR AND ENSURING THAT IT CONTINUES TO PLAY A PIVOTAL ROLE IN FOSTERING ECONOMIC PROSPERITY.

IT IS FOR THIS REASON THAT GOVERNMENT UNDER THE LEADERSHIP OF HIS EXCELLENCY, THE PRESIDENT MR. HAKAINDE HICHILEMA HAS PRIORITIZED THE IMPLEMENTATION OF VARIOUS INTERVENTIONS AS FOLLOWS:

  1. MINING SECTOR INVESTMENTS
  2. RECAPITALIZATION OF MOPANI COPPER MINES PLC

FOLLOWING THE UNVEILING OF INTERNATIONAL RESOURCE HOLDINGS (IRH) AS A STRATEGIC PARTNER FOR MOPANI COPPER MINES PLC, IRH COMMITTED TO RECAPITALIZE THE MINE BY INVESTING ABOUT USD1.1 BILLION AND SETTLE THE DEBT MOPANI COPPER MINES WAS OWING SUPPLIERS AND CONTRACTORS.

SO FAR MOPANI, HAS MADE SIGNIFICANT IMPROVEMENTS, SUCH AS EMERGING AS THE COUNTRY’S FIRST TECHNOLOGICALLY ADVANCED UNDERGROUND MINE AND INCREASING EMPLOYMENT OPPORTUNITIES FROM 10, 765 EMPLOYEES TO THE CURRENT 12,684 EMPLOYEES AS OF OCTOBER, 2024. IN TERMS OF SUPPLIER ENGAGEMENT, 82 % OF THE 1,089 TOTAL SUPPLIERS OF GOODS AND SERVICES TO MOPANI ARE LOCAL ZAMBIANS.

OTHER IMPROVEMENTS MOPANI HAS ALSO MADE IS IN ITS PRODUCTION, SUCH AS THE COPPER GRADE FROM 1.68 % TO 2.21 % AND ORE PRODUCTION FROM 2.2 MILLION TONNES TO 2.8 MILLION TONNES.

  1. RE-LAUNCH OF KONKOLA COPPER MINES PLC

FOLLOWING THE AGREEMENT BETWEEN GOVERNMENT AND VEDANTA RESOURCES PLC TO SETTLE THE DISPUTE BETWEEN THE TWO PARTIES EXCURIA, ON 21ST AUGUST, 2024 GOVERNMENT OFFICIALLY HANDED OVER THE MINE TO VEDANTA RESOURCES PLC.

THE HANDOVER DEMONSTRATED GOVERNMENT’S COMMITMENT IN RESOLVING THE COURT DISPUTES AMICABLY FOR THE BENEFIT OF BOTH PARTIES AND INDEED THE PEOPLE OF ZAMBIA. VEDANTA RESOURCES LIMITED IS EXPECTED TO INVEST ABOUT USD1.3 AND CREATE OVER 2,000 DIRECT AND INDIRECT JOBS.

  1. DEWATERING OF SHAFT 28

GOVERNMENT COMMISSIONED THE DEWATERING OF THE FLOODED SHAFT 28 AT CNMC LUANSHYA COPPER MINES IN LUANSHYA AT AN INVESTMENT OF USD500 MILLION. THIS DEVELOPMENT PAVED WAY FOR THE COMMENCEMENT OF COPPER MINING AT THE SHAFT WHICH HAD BEEN DORMANT FOR OVER 20 YEARS.

THIS PROJECT IS EXPECTED TO CREATE ABOUT 3000 JOBS, BUSINESS OPPORTUNITIES AND ULTIMATELY IMPROVE LIVES OF THE PEOPLE OF LUANSHYA AND BEYOND.

 

 

  1. COMMISSIONING OF THE KITUMBA MINING PROJECT

ON 17TH AUGUST, 2024 HIS EXCELLENCY, PRESIDENT HAKAINDE HICHILEMA COMMISSIONED THE KITUMBA MINING PROJECT IN MUMBWA DISTRICT, CENTRAL PROVINCE.

THIS INVESTMENT IS AT A COST OF USD600 MILLION AND IS EXPECTED TO GENERATE OVER 2,500 DIRECT AND INDIRECT JOBS. THE MINE WILL CERTAINLY ENHANCE EMPLOYMENT OPPORTUNITIES ACROSS VARIOUS SECTORS THUS, CONTRIBUTE TO STIMULATING NATIONAL DEVELOPMENT.

  1. INVESTMENT OF USD300 MILLION IN LUBAMBE COPPER MINE

FOLLOWING JCHX MINING ACQUIRING STAKE IN LUBAMBE COPPER MINE, JCHX MINING COMMITTED TO INVEST ABOUT USD300 MILLION IN THE MINE.

THIS IS AIMED AT REVIVING THE MINE AND EXTENDING ITS OPERATIONAL LIFE. WITHOUT UNCERTAINTY THIS DEVELOPMENT WILL POSITIVELY IMPACT THE LOCAL ECONOMY ON THE COPPERBELT BY PROVIDING EMPLOYMENT AND BUSINESS OPPORTUNITIES TO THE PEOPLE AND BUSINESSES ON THE COPPERBELT.

  1. MINGOMBA MINING PROJECT

GOVERNMENT COMMISSIONED THE MINGOMBA MINING PROJECT IN CHILILABOMBWE, COPPERBELT PROVINCE. ABOUT USD 2 BILLION IS EXPECTED TO BE INVESTED IN THE PROJECT, AND OVER 1000 DIRECT AND INDIRECT JOBS WILL BE CREATED.

THIS DEVELOPMENT WILL BOLSTER ECONOMIC ACTIVITIES ON THE COPPERBELT AND GENERALLY IMPROVE THE LIVELIHOODS OF OUR PEOPLE.

  1. LUMWANA MINE SUPER PIT EXPANSION PROJECT

IN AN EFFORT TO EXPAND ITS OPERATIONS AND ULTIMATELY RAMP UP COPPER PRODUCTION, LUMWANA MINE EMBARKED ON THE DEVELOPMENT OF THE LUMWANA MINE SUPER PIT EXPANSION PROJECT AT A COST OF USD 2 BILLION. THE DEVELOPMENT OF THE PROJECT HAS ADVANCED WITH FIRST PRODUCTION SCHEDULED FOR 2028.

ONCE OPERATIONAL, THE SUPER PIT EXPANSION PROJECT IS EXPECTED TO PRODUCE ABOUT 240,000 TONNES OF COPPER ANNUALLY OVER A PERIOD OF 30 YEARS. THE PROJECT WILL HAVE A POSITIVE IMPACT ON THE LOCAL AND NATIONAL ECONOMY THROUGH JOBS AND BUSINESS OPPORTUNITIES THAT WILL BE CREATED ARISING FROM THIS DEVELOPMENT.

  1. FIRST QUANTUM MINERALS (FQM)

FQM MADE INVESTMENTS TOWARDS IT COMMITMENT OF INVESTING USD1.25 BILLION OVER A PERIOD OF FOUR (4) YEARS IN EXPANSION PROJECTS THROUGH S3 PROJECTS AND THE NICKEL PROJECT.

SIGNIFICANT INVESTMENT HAS SINCE BEEN ACTUALIZED WITH THE S3 EARMARKED FOR COMPLETION NEXT YEAR THAT WILL IMPROVE THE GRADE OF COPPER WHILE AT THE SAME TIME CONTRIBUTING TO INCREASED JOB OPPORTUNITIES.

AS FOR THE NICKEL PROJECT, PRODUCTION HAS ALREADY COMMENCED AND IS CURRENTLY ONE OF THE TOP GLOBAL NICKEL MINE WITH JOBS STANDING AROUND 1,000.

  1. COMMENCEMENT OF OPERATIONS AT KASENSELI GOLD MINE

THE HOUSE MAY WISH TO RECALL THAT ON 23RD OCTOBER, 2021, GOVERNMENT SUSPENDED OPERATIONS AT KASENSELI GOLD MINE DUE TO SAFETY AND ADMINISTRATIVE CONCERNS WHICH NEEDED TO BE ADDRESSED.

I AM GLAD TO INFORM THE HOUSE THAT GOVERNMENT HAS MADE STRIDES IN RESOLVING THE CHALLENGES WHICH LED TO THE SUSPENSION OF OPERATIONS AT THE MINE. AS SUCH, I WISH TO INFORM THE HOUSE AND THE NATION AT LARGE THAT OPERATIONS AT KASENSELI GOLD MINE ARE EXPECTED TO RESUME IN NOVEMBER, 2024.

  1. POLICY, LEGISLATIVE AND INSTITUTIONAL REFORMS

MADAM SPEAKER, IN TERMS OF LEGAL DEVELOPMENTS, GOVERNMENT IS IN THE PROCESS OF ENACTING THE MINERALS REGULATION COMMISSION LEGISLATION, THE GEOLOGICAL AND MINERALS DEVELOPMENT LEGISLATION AND A STATUTORY INSTRUMENT ON LOCAL CONTENT.

  1. MINERALS REGULATION COMMISSION

GOVERNMENT EMBARKED ON THE PROCESS OF ESTABLISHING THE MINERALS REGULATION COMMISSION AIMED AT TRANSFORMING THE REGULATORY FUNCTION OF THE MINISTRY TO THE COMMISSION.  WHILE THE MINISTRY WILL BE HANDLING POLICY RELATED MATTERS.

THE COMMISSION WILL HAVE PRESENCE IN ALL THE MINING AREAS OF THE COUNTRY THUS, ENHANCING THE REGULATION OF THE MINING INDUSTRY. FURTHER, IT IS EXPECTED TO INCREASE REVENUE GENERATION FOR THE NATIONAL TREASURY AND ULTIMATELY CONTRIBUTE TO NATIONAL DEVELOPMENT.

THE MINERALS REGULATION COMMISSION LEGAL FRAMEWORK IS UNDERGOING PARLIAMENTARY PROCESS.

  1. GEOLOGICAL AND MINERALS DEVELOPMENT

THE GEOLOGICAL AND MINERALS DEVELOPMENT LEGAL FRAMEWORK AMONG OTHERS, SEEKS TO PROVIDE FOR GEOLOGICAL SURVEY, MAPPING AND EXPLORATION ACTIVITIES AND THE ESTABLISHMENT OF THE ARTISANAL AND SMALL-SCALE MINING FUND. THE LEGAL FRAMEWORK IS YET TO BE PRESENTED IN PARLIAMENT.

  1. LOCAL CONTENT REGULATIONS

GOVERNMENT HAS DEVELOPED DRAFT LOCAL CONTENT REGULATIONS FOR THE MINING SECTOR WHICH SEEKS TO ENHANCE THE PARTICIPATION OF ZAMBIANS ACROSS THE MINING VALUE CHAIN.

THIS WILL BE UNDERTAKEN BY ENSURING THAT MINING FIRMS RESERVE A SPECIFIC PERCENTAGE OF CONTRACTS TO BE AWARDED TO ZAMBIAN CONTRACTORS AND SUPPLIERS. SO FAR, STAKEHOLDER CONSULTATIONS ON THE DRAFT LEGAL FRAMEWORK HAVE BEEN UNDERTAKEN AND THE FINALIZATION OF THE REGULATIONS IS CURRENTLY UNDERWAY.

  1. ESTABLISHMENT OF A SPECIAL PURPOSE VEHICLE (SPV)

GOVERNMENT IS IN THE PROCESS OF ESTABLISHING A SPECIAL PURPOSE VEHICLE (SPV) CALLED THE ZAMBIA MINERALS INVESTMENT CORPORATION LIMITED.

THIS WILL ENABLE GOVERNMENT OWN AND RUN MINES THROUGH JOINT VENTURES WITH LOCAL AND FOREIGN INVESTORS THEREBY, FACILITATING AND ENSURING VALUE ADDITION AND BENEFICIATION AS WELL AS GUARANTEEING INCREASED BENEFITS FOR THE PEOPLE OF ZAMBIA.

  1. ONGOING SECTOR STRATEGIES AND PROGRAMMES

MADAM SPEAKER, UNDER THIS ASPECT, THE FOLLOWING ARE BEING UNDERTAKEN:

  1. FORMALIZATION OF THE ARTISANAL AND SMALL-SCALE MINERS

GOVERNMENT HAS BEEN MAKING STRIDES IN ENSURING THAT THE ARTISANAL AND SMALL-SCALE MINING SUBSECTOR IS RE-ORGANIZED. AMONG THE INTERVENTIONS UNDERTAKEN INCLUDE FORMATION OF MINING COOPERATIVES ACROSS THE VARIOUS PARTS OF THE COUNTRY WHERE ILLEGAL MINING AND TRADING ACTIVITIES HAVE BEEN TAKING PLACE.

IN ADDITION, THE MINISTRY HAS UNDERTAKEN CAPACITY BUILDING PROGRAMMES FOR THE MINERS IN BASIC MINING METHODS, SKILLS, HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION.

SO FAR, A TOTAL OF 514 ARTISANAL AND SMALL-SCALE LICENCES HAVE BEEN ISSUED. OUT OF THE 514 LICENSES, 333 ARE GOLD MINING LICENCES WHILE 181 ARE NON-GOLD MINING LICENCES FOR MINERALS SUCH AS MANGANESE AND COPPER.

 

  1. ESTABLISHMENT OF GOLD MARKETING CENTRES

IN AN EFFORT TO CURB ILLEGAL GOLD MINING AND TRADING ACTIVITIES, GOVERNMENT THROUGH THE MINISTRY OF MINES AND MINERALS DEVELOPMENT IS CONSTRUCTING GOLD MARKETING CENTRES IN AREAS WITH SIGNIFICANT GOLD MINING ACTIVITIES. THE CONSTRUCTION OF THE FIRST TWO CENTRES HAS SO FAR COMMENCED IN MUMBWA AND RUFUNSA DISTRICTS. THE CENTRES ARE EXPECTED TO BE COMPLETED BY END OF 2024. TO SUPPORT THE OPERATIONALIZATION OF THE CENTRES, GOVERNMENT HAS ALSO PROCURED VARIOUS EQUIPMENT TO ENHANCE THE OPERATIONS AT THE CENTRES.

GOVERNMENT HAS ALSO APPOINTED ZAMBIA GOLD COMPANY LIMITED AS A GOLD AGGREGATOR TO BE BUYING GOLD FROM THE FORMALIZED GOLD MINING COOPERATIVES. THE COMPANY IS IN THE PROCESS OF SETTING CAMP IN RUFUNSA AND MUMBWA BEFORE THE END OF, 2024.

  1. OTHER SECTOR DEVELOPMENTS

MADAM SPEAKER, OTHER DEVELOPMENTS INCLUDE THE FOLLOWING:

  1. LAUNCH OF THE COUNTRYWIDE HIGH-RESOLUTION AERIAL GEOPHYSICAL SURVEY

ON 14TH AUGUST, 2024 HIS EXCELLENCY THE PRESIDENT MR. HAKAINDE HICHILEMA LAUNCHED A COUNTRYWIDE HIGH-RESOLUTION AERIAL GEOPHYSICAL SURVEY. THE SURVEY WILL SUPPORT NEW AND ONGOING MINERAL RESOURCE EXPLORATION AND DEVELOPMENT PROJECTS BY UNLOCKING INVESTMENT IN THE MINING SECTOR THROUGH THE GENERATION OF RELIABLE AND UP TO DATE GEOLOGICAL INFORMATION.

GEOLOGICAL INFORMATION GENERATED WILL ALSO BE KEY IN ACTUALISING THE ATTAINMENT OF THREE MILLION TONNES OF COPPER PRODUCTION BY 2031 AND THE EXPLOITATION OF CRITICAL MINERALS IN LIGHT OF THE GREEN ENERGY TRANSITION. THE INITIAL TARGET AREAS FOR THE SURVEY IS WESTERN AND NORTHWESTERN PROVINCES AFTER WHICH THE SURVEY WILL BE EXTENDED TO OTHER PROVINCES. PRELIMINARY GEOLOGICAL DATA FOR THE AREAS FLOWN SO FAR HAS BEEN OBTAINED. THE AREAS INCLUDE CHAVUMA, ZAMBEZI, LUKULU AND KALABO DISTRICTS.

  1. SIGNING OF AN MOU WITH IVANHOE MINING LIMITED

GOVERNMENT THROUGH THE MINISTRY OF MINES AND MINERALS DEVELOPMENT SIGNED AN MOU WITH IVANHOE MINING LIMITED ON 26TH AUGUST, 2024. THE MOU RELATES TO THE EXPLORATION AND PRODUCTION OF COPPER. IVANHOE IS A CANADIAN LEADING DIVERSIFIED MINING COMPANY FOCUSED ON DISCOVERING, DEVELOPING AND PRODUCING THE CRITICAL RESOURCES ESSENTIAL FOR A LOW-CARBON FUTURE.

WITH THIS MOU, AMONG OTHERS, AIMS TO ENSURE THAT BOTH PARTIES CO-DEVELOP PROSPECTIVE PROJECTS TO ENSURE LONG TERM SUSTAINABLE DEVELOPMENT OF THE COUNTRY’S MINERAL RESOURCES WHILE PROVIDING A SUSTAINABLE CONTRIBUTION TO THE NATIONAL ECONOMY AND HOST COMMUNITIES. FURTHER, THIS DEVELOPMENT IS CRITICAL AS IT WILL CONTRIBUTE TO THE COUNTRY ATTAINING THREE (3) MILLION TONNES OF COPPER PRODUCTION BY 2031.

  1. SIGNING OF AN MOU WITH THE GEOLOGICAL SURVEY OF FINLAND (GTK).

IN LINE WITH UNDERTAKING A COUNTRYWIDE HIGH-RESOLUTION AERIAL GEOPHYSICAL SURVEY, GOVERNMENT THROUGH THE MINISTRY OF MINES AND MINERALS DEVELOPMENT SIGNED AN MOU WITH THE GEOLOGICAL SURVEY OF FINLAND (GTK). THIS STRATEGIC PARTNERSHIP WILL ENSURE QUALITY CONTROL AND ASSURANCE OF THE DATA THAT WILL BE GENERATED DURING THE AERIAL GEOPHYSICAL SURVEY THUS, RESULTING IN QUALITY AND RELIABLE GEOLOGICAL INFORMATION.

OTHER DEVELOPMENTS THAT HAVE TAKEN PLACE INCLUDE THE DEVELOPMENT OF A 3 MILLION TONNES STRATEGY TO ACTUALIZE THE ATTAINMENT OF THREE MILLION TONNES COPPER PRODUCTION BY 2031, AND THE NATIONAL CRITICAL MINERALS STRATEGY TO PROMOTE INVESTMENT IN THE MINERAL VALUE CHAIN BY GOVERNMENT. THE THREE MILLION COPPER PRODUCTION STRATEGY CLEARLY SPELLS OUT THE MEASURES GOVERNMENT IN COLLABORATION WITH KEY STAKEHOLDERS WILL IMPLEMENT TO ACHIEVE THE TARGET.

IN ADDITION, THE NATIONAL CRITICAL MINERALS STRATEGY HIGHLIGHTS GOVERNMENT’S STRATEGIC FOCUS AND OBJECTIVES FOR EXPLOITING THE COUNTRY’S CRITICAL MINERALS.

MADAM SPEAKER,

I WISH TO REITERATE THAT GOVERNMENT IS COMMITTED AND KEEN TO REFORM THE MINING SECTOR IN ORDER TO IMPROVE THE COUNTRY’S SOCIO-ECONOMIC DEVELOPMENT.

AS SUCH, MINING BEING ZAMBIA’S MAJOR ECONOMIC ACTIVITY IS CRITICAL TO DRIVING THE ECONOMIC RECOVERY AGENDA FOR THE COUNTRY. THEREFORE, GOVERNMENT HAS PRIORITIZED THE IMPLEMENTATION OF MINING RELATED INTERVENTIONS IN ORDER TO HARNESS AS MUCH BENEFITS AS POSSIBLE FROM THE EXPLOITATION OF THE COUNTRY’S MINERAL RESOURCES.

I THANK YOU MADAM SPEAKER.

 

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