ZCCM

Zambia Seeking to Gain from Booming Mining Sector

Published on January 19, 2012 at 7:55 PM



By Joel Scanlon

Zambia is looking to realise greater profits from its mining industry. The Mines Minister Wilbur

Simuusa was speaking to mine supplier and contractors at the Chingola mine club when he said that in

terms of mineral resources they were the richest nation and yet they were counted amongst the

poorest nations in the world.



The new Zambian president Michael Sata has introduced populist policies to ensure that the state has

better control over the booming mining sector in the nation. The state run mining company called

Zambia Consolidated Copper Mines Investments Holdings is to get a larger role in the mining sector

soon.



The state run mining company is to get a higher stake in existing copper mines from the current 10

to 15% to nearly 35%. The Mines Minister Wilbur Simuusa also said the company would be also

acquiring two new green field projects. These are new mining projects that are likely to be located

outside the copper belt province in Zambia.



Small scale miners are also going to be encouraged as per the Mines Minister Wilbur Simuusa as a new

fund is being set up for the mining sector. This fund will aim at providing loans to local junior

miners. The minister said that the country had learnt from the Mining Sector Diversification

Programme revolving fund that the European Union had dished out and would not be making the same

mistakes.



The mining minster also said that there was a need to reorganize the gemstone industry. The poor

export monitoring system was costing the government a lot of revenue said Simuusa. Last year the

gemstone industry declared revenue of merely $2 million while the world market declared that nearly

$700 million worth of gemstones were bought from Zambia.