The Association of Mine Suppliers and Contractors of Zambia – AMSCZ has called for a balanced approached were the needs of both local and foreign players in the mining industry is taken onboard to ensure that more investments and sustainable jobs are created in the country .
AMSCZ President Augustine Mubanga said in this regard, the new Government needs to craft and implement policies that will ensure a stable mining environment in the country, which is not only favorable for multinationals companies, but local Mine contractors and suppliers.
Mubanga said to achieve this, the new government needs to either revise the Mines and Minerals Development Act or issue a statutory instrument to accommodate the diversity of interests of both local and foreign investors.
He said in an interview with the Zambian Business Times – ZBT that Government should quickly implement or sign the Local Content Policy for the mining sector, which is anchored on prioritizing the consumption of locally manufactured goods in the mining sector and also the employment of Zambians with technical skills.
“The local content policy is an extrusion from the Mines and Minerals Development Act section 20. The policy will make sure that as the [foreign owned] mining companies are doing business, they need to give special prefer pence to locally manufactured goods and they need to give preference to qualified Zambians with technical skills in existing mining operations to ensure that benefits accrue to the country.
The mining companies also need to support the industry by giving those products that are manufactured locally quotas so that the industry begins to have a ready market,” Mubanga said. He further stated that the minimum percentage agreed upon initially was that 30% of locally manufactured goods and skills must be reserved for Zambians in the first year of implementation of the policy.
Mubanga said, “the initial percentages we had agreed on was 30% of locally manufactured goods and also the skills, that is a graduated approach, the first year of implementation is 30% and this will be attained through the establishment of a local content board which is going to accelerate the implementation of the legal requirements through a Statutory Instrument.
He said from there, the score sheets would be provided to all mines to fill in the levels of the implementation of the local content.
“Year one, we anticipate that 30% will be a starting point, other mines might be on 40%, but the minimum is 30% in year one, then in year two looking at the dynamism of in sector the graduation could graduate to 35 to 40% depending on how the sector is responding.
“The quick implementation or signing of the local content policy will empower local Zambians and create wealth among Zambians in the sector. That piece of legislation will be key to achieving that dream of a win-win mining sector ,” Mubanga said.
He further said a special regulator or Agency for the mining industry should be established to be able to regulate the technical, financial and taxation of the mining companies in the country. “The establishment of a regulator or Agency, which the industry agreed on, is important that the mining sector have a specific agency or regulator.
Among all the ministries in Zambia, isn’t it strange that only the Mines ministry do not have a special regulatory agency and yet mining is the biggest industry in Zambia?, we need to have an agency with top experts which is able to regulate the operations of the mines.
“So we are looking forward to working with the new government in crafting the policies that will help to drive the economy in the mining sector in a positive trajectory,” he said.
Mubanga also called on the fair implementation of the law to compel even Chinese owned companies to do business with locals. He lamented that Chinese owned mining companies give little or no businesses to local mine suppliers and contractors in the country, a situation which needs to change.
“We want to see that this behavior by the mining companies owned by Chinese, of excluding Zambians to fully participate in the areas of contracting and procurement should come to an end.
That can only come to an end when the law is crafted and implemented fairly and across the industry. So we see hope in the victory speech by the president and shows that in terms implementation of the law, and observance of the law, we not going to have segregation of implementation of the law,” Mubanga said.
He said , “So if we walk on that path, then we don’t see the Chinese walking on the same path that they have been on of excluding Zambian businesses totally from participating in the opportunities that are created or generated in their investments.
Mubanga said the association was of the view that this trend must be broken and sanity brought so that if opportunities are created in the Chinese owned mines or any other owned mines, those opportunities must first benefit Zambians because they are the owners of the mineral resources that are being exploited.
“So that should be respected and we would also want to see them participating in the knowledge and skills transfer and supplier contractor development, they need to come up with programmes that aim at developing local suppliers to a level where they begin to engage in higher volumes of activities.” He added.
Zambia can only be developed by Zambians and this notion needs to be taken into consideration when crafting policies. Zambia by now should be talking of Zambian opening new mines, but this all depends on policies adopted.
