The Republic President Edgar Lungu has assured that national that government is determined to ensuring that mining continues to thrive in the country despite the current copper production levels not being favorable.
During the first half of 2019, copper production and earnings declined by 5.3 percent and 23.5 percent, respectively attributing the decrease mainly to low ore grade, suspension of some mining operations, operational challenges and depleting ore reserves at old mines.
The Zambia Chamber of Mines Chief Executive Officer Sokwani Chilembo had since projected a 100, 000 tonnes drop in copper production for the year 2019 and that Zambia’s mining industry is also expected to drop-off the global top ten copper producers list. Zambia’s mining industry has been battling to sustain production levels due to what the chamber of mines has described as challenges to contain cost escalation and to maintain asset quality after over a decade of near biennial tax burden increases.
Addressing the national in parliament on 13 September 2019, President Lungu noted that the country has an array of minerals including gold, which is now being seriously harnessed. He said Gold mining and production is critical in supporting the country’s economic diversification and job creation adding that in maximizing benefits from gold production there is need to continue promoting investment in exploration and strengthen regulatory enforcement capacity.
“Government’s determination in promoting the participation of more economic players, particularly locals, along mining value chains, cannot be over-emphasized. We will continue prioritizing the development of small-scale mining and design specific measures to grow this sub-sector. Particular attention will be paid to gemstones, gold and the mining of industrial minerals.” he said.
President Lungu has since directed the ministry of Mines and other relevant Ministries to provide a clear development framework for the gold mining industry in the country. The Ministry in collaboration with ZCCH-IM had assured the national that progress towards promoting gold mining in the country had been made and Runfunsa district in Eastern province and Mwinilunga district in North western province were among the areas that were recognised for this kind of development.
Reports about illegal Gold and Gemstone mining in these areas have been reported with the current run being described as a Gold rush. However, Zambia’s Gold and Gemstone production has not been properly organized leading to most of the trade being done under the unregulated and untaxed methods.
