Mines Ministry Permanent Secretary Paul Chanda says government has made progress in promoting local participation in the mining sector to empower citizens and increase the country’s economic resilience and competitiveness by diversifying to other mineral resources apart from copper.
Chanda told the Zambian Business Times – ZBT in an exclusive interview that copper is Zambia’s major export earner and that government has also taken recognition of other minerals produced such as cobalt, silver and gold hence the need to closely monitor and promote the wider mining industry.
He said Zambians with the help of government have the capacity to run the mines and that gold mining has been identified in areas like North-Western, Central and Eastern provinces as one area were locals can control the sector if well coordinated and implemented.
Chanda further said that the ministry has backed the formation of cooperatives in local communities to start engaging in gold mining adding that ZCCH-IH has also been involved to provide and support the set up of a gold buying company that will ensure that local miners get better prices for their commodity.
ZCCM – IH would also support through set up of a company that can invest in the right machines and equipment to drive the processing and facilitate exports to further boost this industry. He stated the government is aware of illegal miners and unscrupulous buyers invading gold mining areas saying the illegal miners and traders can only be removed with the help the ministry of home affairs and Ministry of Commerce.
“We are aware of areas where gold is being produced but the problem is people do not have the capacity to operate in the mines hence these areas have been invaded by illegal miners who can only be removed with the help of the ministry of home affairs and we are doing that with other players like the ministry of commerce so that we find a market for this gold being produced in those areas,”
He added that the ministry is also showcasing a community or cooperative mine in Kasempa district of North Western were gold mining has also been recognized but that government has not made much progress due to lack of unity among community members in the area.
“We wanted to support the formation of a community mine in Kasempa were residents come together with their chiefs to partner with someone and we give them a mining license but we have challenges to do that because of dis-unity among the people in the area, however we are still looking at other ways to promote local peoples involvement and development in this area.” he said.
Unlike Copper, gold mining is less capital intensive and this makes this sector a good candidate for local participation and control of the industry. The copper mining industry is more capital intensive and technical expertise needed to fully exploit the ores need much more capital when compared to gold mining.
Finance Minister Margerate Mwanakatwe has indicated that Zambia will include Gold as an alternative and additional form to hold foreign currency reserves for the country. Gold is an internationally approved form to hold national reserves in and if Zambia can create proper value chains around gold mining, processing and exports, the mineral could become a hedge for cyclical international copper prices.
