Mining sector under pressure-Chamber of Mines

“THE mining sector is currently under pressure in contributing to the national treasury, hence the need for urgent diversification into other economic sectors,” Chamber of Mines acting chief executive officer, Talent Ng’andwe has said.

In an interview with Daily Nation, Mr Ng’andwe said that while the mining sector needs diversification other than copper, the mines need relief from the current pressure of contributing to the treasury.

 
“We have been contributing a lot to this economy of more than 70 percent of total exports to bring in foreign exchange, but in terms of revenue, I think we are seated between 30 to 35 percent of our total contributions. What we need to do, therefore, as an economy is to diversify. As a mining industry, we need this pressure to go away from us in terms of contributing to the treasury. Government needs to come up with deliberate measures to ensure they grow other sectors,” Mr Ng’andwe said.
 

Mr Ng’andwe said the manufacturing industry needed to be promoted as it could feed into the mining industry. He explained that the mines purchased a lot of supplies from the private sector most of which were imported.

“There is very little local supplies but we need to promote industries to manufacture these consumables to the mines for that money to be able to remain in Zambia” he said.

He also said there was need for more emphasis of geological mapping to explore Zambia for more mineral resources.

“We need to emphasise on mapping, you must be aware that 40 percent has been explored in Zambia and we are remaining with 60 percent, these mines you see here did not come from without, they were exploration activities undertaken,” he said. 
Mr Ng’andwe explained that diversifying within the mining sector by identifying other minerals, other than copper was critical.

“We cannot only rely on copper as the only metal that can contribute, when you look at Lufwanyama area, it has potential to contribute to this economy, the reserves are quite good. 

“We also need to look at industrial minerals such as granite and clay. These are minerals found in the communities where people live and they can help in diversifying the economy,” he said.