Copper cobalt africa, incorporating the 8th southern african base metals conference livingstone, zambia, 68 july 2015 southern african institute of mining and metallurgy 1 copper mining in zambia history and future jackson sikamo,1,2 alex mwanza2 and cade mweemba2 1 president zambia chamber of mines 2 chibuluma mines plc, zambia corresponding author. As shown in the charts above, the four largest mining companies in zambia, konkola copper mines and mopani copper mines from the copperbelt province and kansanshi and lumwana from northwestern province, account for over 85% of copper production in zambia. An overview of copper mining in zambias copperbelt province. Addressing the environmental and social governance challenges. Copper mining in zambia history and future population increase lead to the establishment of settlements which rapidly grew into new towns. Support industries emerged and infrastructure such as hospitals, schools, roads, markets, and recreational facilities were built. January 9, 2019 mining companies accounted for more than a quarter of governments income zambia eiti report. The government turned to international borrowing to support expenditures. The shareholdings that zccmih has in zambia s copper mines is a freecarry shareholding. Background zambias major economic activity is mining, and as at 2005, mining contributed about 65% of export earnings. Zambia mining, a global case study of mismanagement. Drawing on case study data from the copper mining sector in zambia, this paper argues that the economic and political context surrounding chinese investment risks undermining the effectiveness of local environmental, social and fiscal regulation.
Mining had been going on in the region known today as zambia long before the white settlers came on the scene. The mines and minerals act, 2015 national assembly of zambia. The mining was of a traditional and subsistence nature and confined to surface outcrop deposits. Government and the mining companies claim that all are benefiting from this boom on the copperbelt.
The zambian government, through its investmentholding company zccmih, is a minority shareholder in nearly all of them and is, in. The mining tax reform that took place in 2008 is one of several distinct shifts in zambias mining tax regimes since the beginning of largescale commercial copper mining in the 1920s. Copper mining in zambia inn investing news network. Mining companies in zambia are focused on extracting the countrys vast copper and uranium deposits, as well as the more limited gold, nickel and industrial deposits. Training the people who work in the mining industry and retraining annually helps reduce deaths, injuries and illnesses. Konkola copper mines kcm is the largest copper mining company in the country. The zambian government has a minority stake in some of these smaller mines too through zccmih. At independence in 1964 zambia, led by kenneth kaundas united national independence party, was reckoned a middleincome country with good prospects for.
This is for essential maintenance which will provide improved performance going forwards. Iclg mining laws and regulations zambia covers common issues in mining laws and regulations including the mechanics of acquisition of rights, foreign ownership and indigenous ownership requirements and restrictions, processing, beneficiation in 28 jurisdictions. This note explores the prospects for growth in zambias copper mining industry, the potential contribution that a larger, more competitive copper mining industry could make to jobs and prosperity, and what it would take for the industry to achieve its potential. The mines and minerals act, 2015 national assembly of. Thus, by 1964, when zambia was born, it had a strong.
The country has a mixed economy in which copper mining constitutes the backbone of the economy. Although based in chingola, 15% of its operationsnamely nkana refinery, nkana acid plants and nkana smelter the largest smelter in the nation are located in kitwe. Mining development in zambia 2 national assembly of. Zambias economy is heavily dependent on copper mining, a sector that suffered greatly from the copper price collapse in the mid1970s. As a leading global manufacturer of crushing, grinding and mining equipments, we offer advanced, reasonable solutions for any sizereduction requirements including, method of mining in zambia, quarry, aggregate, and different kinds of minerals. The zambian government, through its investmentholding company zccmih, is a minority shareholder in nearly all of them and is, in effect, the biggest shareholder in zambias mining. All the mines are backed by a wide range of respected international investors. It owns 20% of lubambe copper mine, 15% of nfc africa mining, 15% of chibuluma mines and 10% of chambishi metals. By the 1920s, rich copper deposits were attracting mining financiers from the us, britain and south africa. Downloads zambia chamber of mines zambias mining portal. The historical role of copper mining in the zambian. The historical role of copper mining in the zambian economy and society from colonialism to nationalisation one of worlds largest sources of copper ore is found on the border of zambia and the democratic republic of congo, in a region known as the copperbelt. Zambian mining news the premium source of information on. Zambia, a landlocked nation located in southern africa, has a population of.
Zambia is watching the events at one of the countrys leading copper producers, konkola copper mines kcm following reports that the company needs to be rescued by the state because it was loss making. The purpose of this report is to support public disclosure of. Human rights watch found that while zambians working in the countrys chineserun copper mines welcome the substantial investment and. Technical report on the geology and exploration of the. In line with other newly independent african countries, the.
Mining laws and regulations zambia covers common issues in mining laws and regulations including the mechanics of acquisition of rights, foreign ownership and indigenous ownership requirements and restrictions, processing, beneficiation in 28 jurisdictions. The primary law governing the mining sector in zambia is the. I ask xiao ye, an africa statistical researcher for the world bank, whether a clear chart or table exists laying out the full extent of chinas economic involvement in. Developments on the international stage, such as the. At the macro level, two historical acts stand out, namely the privatisation act of 1992 that paved the way for the privatisation and commercialisation of stateowned enterprises in zambia. Vice president guy scott told parliament on february 14 in. Summary of the solwezi group of prospecting licences republic of zambia, southern africa. Large scale mining started in kabwe in 1902 and on the copper belt in 1910. Copper mining in zambia investing news network march 14th, 2011 zambia is most famous for its reserves of copper and cobalt, however, the country is also a miner producer of selenium and sliver. We provide in depth coverage of mining projects and the personalities reshaping the mining industry in the country. After decades of decline, the price of copper has been rising at unprecedented levels since 2003. Vice president guy scott told parliament on february 14 in a ministerial statement accessed by mining read more. As of 2012, kansanshis updated resource was calculated at 744. Copper cobalt africa, incorporating the 8th southern african base metals conference livingstone, zambia, 68 july 2015 southern african institute of mining and metallurgy 499 an overview of copper smelting in southern africa rodney t.
In 2009, copper mining in zambia produced 655 000 tonnes, earning the country the title of the 8th largest copper producer in the world copper mining in zambia is largely centred in the copperbelt province, where large mining companies, such as konkola copper. Copper mining is the major economic activity in the nation. The government is trying to diversify its economy to agriculture and tourism. Also in 1973, zambia became a one party state following a socialist ideology, a situation reversed in 1991when a multi party dispensation was reintroduced chan and clancy 2000. Mining development in zambia 2 national assembly of zambia. Economic crisis and reprivatization of copper mines after the nationalization process, the mines took on several. For companies interested in conducting mining operations, or opening mining companies, in zambia, zambias ministry of mines, under which falls the chamber of mines, is the.
However, the world bank also found issues relating tothe awarding and retention of exploration and mining licenes, which it said lacked transparency and consistency. Zambia has, in recent years, experienced high investment in the copper mining industry, which is expected to lead to. A string of ngo, media and academic reports in recent years have highlighted how mining companies, while producing a large amount of copper, have been paying few taxes to the government. Switzerlands role in zambias copper sector volume 57 issue 2 gregor dobler, rita kesselring book chapters will be unavailable on saturday 24th august between 8am12pm bst. Zccm was owned by zambia industrial and mining corporation 60. Copper mining in zambia page 6 paper 165 july 2008. Mining kcm has open pit and underground mines at nchanga and konkola. Copper mining in zambia page 2 paper 165 july 2008 however, its performance declined from the mid1970s and by the end of the 1980s copper mining was no longer the golden cow which had been the engine of the countrys industrial and social development. In 1978, the year the mine safety and health administration was established, 242 miners died in mining accidents. Ivpaf is a canadian mining company focused on advancing its three principal projects in southern africa.
Konkola copper mines kcm archives zambian mining news. F our big mines dominate zambias copper production, complemented by several smaller players who also play an important role. Dr mwansa noted that zambian towns like kitwe chingola, mufulira and chililabombwe have been built from resources earned from mining. Addressing the environmental and social governance. It accounts for over 70 percent of total export earnings. The zambian mining magazine zmm is a premier source of news on mining developments in zambias most important industry. We provide indepth coverage of mining projects and the personalities reshaping the mining industry in the country. All the content, except for external news items, is free for use.
Eventually, ownership of the mines was vested in zambia consolidated copper mines ltd zc cm, a wholly government owned corporation. The countrys illfated nationalisation programme should make the likes of anc youth league ancyl president julius malema tone down their fiery rhetoric and listen to what they do not want to hear. Technical report ni 43101 march 27, 2014 page 11 1 summary executive summary this technical report on the lumwana open pit copper mine lumwana mine, located in the northwestern province of the republic of zambia has been prepared by barrick gold corporation barrick. The largest of the mine assets, konkola, is the most northerly of the copperbelt mines and is located 26 kilometres from chingola. In negotiating the mining concessions in 1890, king lewanika transferred the indigenous rights to land to mining companies that held them in perpetuity, while indigenous people were removed from those areas, often forcefully. It highlights key industry issues, and shares information about mining and its contribution to the economy and society. Mining tax the best approach to an uncertain future.
In january 20 however, kcm terminated one of the mining contracts between the parties and purported to rescind the settlement agreement. Photographs courtesy of shannon van sant, 2009, zambia. The natives of zambia would melt and mould the copper into ingots used as a medium of exchange and other metal products, such as hand tools and weapons. Zambia has become a global case study in the mismanagement of mining operations. In line with other newly independent african countries, the goz transferred ownership to. In 2009, copper mining in zambia produced 655 000 tonnes, earning the country the title of the 8th largest copper producer in the world. An exciting new copper play in zambia multiple tier one copper assets zamsortzaco comprehensive airborne geophysical programme and soil sampling programme completed 14 large and well defined targets identified major drilling programme underway achieved some of the best intersections in the. Copper mining in zambia copper mines in zambia projects iq. This act may be cited as the mines and minerals development act, 2015, and shall come into operation on 1st july, 2015.
The nkana smelter is the largest primary copper production plant in zambia. For companies interested in conducting mining operations, or opening mining companies, in zambia, zambia s ministry of mines. David manley introduction after enjoying one of the greatest mining booms in their countrys history, zambians are suffering. Whether or not the zmlci results in linkage formation that leads to spillovers depends on the design of the policy, supported and enforced by key political institutions, and the extent to which it is consistent with related policies affecting the mining sector in zambia. Zambia s single largest producing copper mine and also an important gold producer within zambia. Copper mining in zambia history and future article pdf available in journal of the southern african institute of mining and metallurgy 1166. Zambias major economic activity is mining, and as at 2005, mining contributed about 65% of export earnings. Major minerals are copper and cobalt copper production stands at 465,000 mt, and is expected to reach about 700,000 mt by 2010. Consolidated copper mines nccm were merged to form zambia consolidated copper mines limited zccm, in which the government owned 60. The zambian mining magazine zmm is a premier source of news on mining developments in zambia s most important industry. Copper mining in zambia has been one the countrys most important sources of income since the metals discovery in the 1920s. From a peak in 2011, copper has lost more than half its value. By 1986 a noticeable decline in copper production resulted in the closure of many mining units and led to the implementation of a fiveyear plan to revive the company8. Kcm has open pit and underground mines at nchanga and konkola.
The historical role of copper mining in the zambian economy. At independence in 1964, zambia inherited a private sector driven economy dominated by the foreignowned mining sector contributing almost 50% of gdp and even more of government revenues. For a country still dependent on mining copper for much of its livelihood, this drop has. Zambia consolidated copper mines zccm, which operated ten mines, three smelters, two refineries and a tailings leach plant. Mining for zambia is an industry website aimed at promoting a better understanding of the zambian mining industry. Copper zambia chamber of mines zambias mining portal. Copper mining in zambia is largely centred in the copperbelt province, where large mining companies, such as konkola copper mines and mopani copper mines, operate large projects. The esg behavior of three emergingmarket companies nfca for china, metorex for south africa, and vedanta resources for india is compared to that of a more traditional, oecdoriginated investor first quantum minerals, a canadian company. In other words, the basic legal framework for zambias mining industry is reasonably sound.
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