For 2 decades, zambias mining sector has experienced significant foreign interest and investment driven mainly by the privatization of stateowned zambia. Recent economic developments zambias recent economic performance suffers from a mix of domestic and international unfavourable. Konkola copper mines kcm is the largest copper mining company in the country. Mining in 2015 maintained the same output level as in 2014 at 710,000 tons. Regional location of zambia and transport network in central and southern africa key geographical features of zambia zambia.
The seventh national development plan 7ndp for the period 2017 2021 is the successor to the revised sixth national development plan, 202016 r. Zambian mining news the premium source of information on. Report prepared by the international institute for environment and development iied for the intergovernmental forum on mining, minerals and sustainable development igf april 2018 written by fitsum weldegiorgis, lynda lawson and hannelore verbrugge. 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. Between the periods 19701975, 19761990 and 19911999, per capita gdp fell by 0. Mining legislation and mineral development in zambia.
Major minerals are copper and cobalt copper production stands at 465,000 mt, and is expected to reach about 700,000 mt by 2010. Report enhancing minings contribution to the zambian. Software support was provided by campbell university. Small scale mining in zambia zambia mining free 30day. We provide in depth coverage of mining projects and the personalities reshaping the mining industry in the country. Zambias economy is heavily dependent on natural resources, and the mining sector has been a prime mover of economic development for over 70 years, with exports. Foreign direct investment in zambias mining and other sectors. Pdf copper mining in zambia history and future researchgate. Handbook of the mining regulations, the explosives ordinance. This report is the first independent study to look. Mining in zambia 5 role of government 9 mining legislation geology 15 economic geology 20 exploration potential 27 tax regime and incentives the business environment 14 31 2. Evolving features of zambias mining fiscal regime since 1997 19.
The mines and minerals act, 2015 national assembly of zambia. As of 1976, 64,580 of zambia s 368,470 wage earners were employed in the mining industry. The mining companies were forced to give 51% of shares in all existing mines to the state. However, the mining industry has contributed to turbulent economic times too.
Consistent private sectordriven investment in the industry. The two nationalised companies were combined in 1982 to form zambia consolidated copper mines zccm kaundas philosophy, of zambian humanism focused on developing the potential of the. Thus, by 1964, when zambia was born, it had a strong. Support industries emerged and infrastructure such as hospitals, schools, roads, markets, and recreational facilities were built. The mining bodys president has appealed to government to relax the tax policies, least some mining companies will not operate beyond this year. The legacy of lead and the human cost of previous mines 26. Investment opportunities in the mining zambia mining website. 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. Minerals and mining explosives regulations, 2012 li 2177. Recent reports from zambia chamber of mines indicate that the newly implemented tax regime is igniting production challenges for several mining companies. The governments growth estimate for 2015 is 34%, with a projected increase to 3. Zambia mining and environmental remediation and improvement project zmerip zambia extractive industries transparency initiative zeiti african caribbean and pacific countries acpeu minerals development project.
In zambia, the mining industry mostly the copper smelters contributes to over 98% of the countrys so 2 emissions. Seventh national development plan 20172021 i foreword zambia remains committed to the socioeconomic development planning of the country as reflected by the return to development planning in 2005. On the other hand, the number of studies focused on the impacts of mining and mineral processing. Handbook of the mining regulations, the explosives ordinance and the explosives regulation of the republic of zambia zambia. Zambia must reduce the deforestation rate to ensure a green economy and sustianbale development. A case for local contents in the mining industry article pdf available may 2018 with 1,852 reads how we measure reads. Copper mining in zambia page 1 paper 165 july 2008 iss paper 165 july 2008 price.
Small scale mining in zambia zambia mining free 30. 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. The world bank has partnered with zambia since 1955 to support the countrys development projects, including mining, infrastructure and health. Sustainable mining international labour organization. Zambia is in possession of some of the worlds highestgrade copper deposits. Zambia ranked 97 of 189 in the 2016 doing business report moving 6 places down due to decline in trading across borders. Pdf the zambian copper mining industry as we know it today had its genesis in the 1920s. Mining development in zambia 2 national assembly of zambia. The threats of climate impacts to sustainable development are critical and these have to be addressed if zambia. Getting back onto the path of deficit reduction will require considerable discipline and dedication, particularly given the likely pressures to increase spending in an. Most of the zambian mining industry was privatised in the early 2000s, following several decades. The mining sector is a major contributor to foreign direct. This booklet has been prepared for the general guidance of officials and employees in copper mining industry of zambia by amalgamating the mining regulations 1971 statutory instrument no.
A large share of the blame for this disaster can be put at the feet of the collapse of the world price of. For 2 decades, zambias mining sector has experienced significant foreign interest and investment driven mainly by the privatization of stateowned zambia consolidated copper mines zccm, a low taxation environment and low political interference. For companies interested in conducting mining operations, or opening mining companies, in zambia, zambia s ministry of mines, under which falls the chamber of mines, is the. For 2 decades, zambia s mining sector has experienced significant foreign interest and investment driven mainly by the privatization of stateowned zambia consolidated copper mines zccm, a low taxation environment and low political interference. The ministry of mines and minerals development is responsible for the development and management of mineral resources in a sustainable manner for the benefit of the people of zambia. Zambia has taken steps recently to address its power deficit, most notably by eliminating power subsidies and thus making power investment more attractive. Is zambias mining tax the best approach to an uncertain future. Downloads zambia chamber of mines zambias mining portal.
In the past year, zambia was the only country to revise mineral royalty rates, thus pushing. Zambia, africas secondlargest copper producer, achieved middleincome country status in 2011 during a decade 20042014 of impressive economic growth, averaging 7. In this years edition of state of mining in africa in the spotlight, we take a further look at, and reflect back on, our observations. It highlights key industry issues, and shares information about mining and its contribution to the economy and society.
With a considerable canadian mining presence already established in zambia, it is anticipated that the project will help to establish a regulatory regime that will benefit new and existing canadian mining companies in zambia. The nkana smelter is the largest primary copper production plant in zambia. The primary law governing the mining sector in zambia is the. In the early 2000s, the total so 2 emission was 346 700 tonyear en vironmental council of zambia 2008. The country located well within the tropics and with an average elevation of between m and 1500m, zambia enjoys a sunny climate with three distinct seasons.
The economy was experiencing negative growth, production of copper and government. Zambias major economic activity is mining, and as at 2005, mining contributed about 65% of export earnings. Smallscale mining and sustainable development within the. Zambia is a landlocked country of about million people in southern africa. 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. Zambia ranked 97 of 189 in the 2016 doing business report moving 6. There are many acts of parliament which deal with mining and mining related work. It relates primarily to the disposition of mining rights and the specific imposts that relate to the. The mining and refining of copper has been of immense importance in zambia.
Zambia is expected to continue experiencing significant population. January 9, 2019 mining companies accounted for more than a quarter of governments income zambia. 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. Mining and corporate social responsibility in zambia. Attempts to strengthen economic management and governance have had mixed results. The zambian mining magazine zmm is a premier source of news on mining developments in zambia s most important industry. The historical role of copper mining in the zambian. Mostly children are not directly involved in mining digging itself, but in activities like transport of water, minerals processing and gold panning. Botswana shows evidence of more government influence on mining operations than zambia which reduces the incidence of rent seeking behavior in botswana, and shows that botswana has better institutional quality. Since the 1930s, a wide variety of nonmetalliferous and metalliferous resources were discovered in zambia and these resources have expanded the mining and exploration activities in the country. A major difference in mining law in zambia and botswana is governments involvement in the implementation of the law. Copper mining in za mbia history and future population increase lead to the establishment of settlements which rapidly grew into new towns. Foreword zambia is endowed with substantial mineral resources.
This was despite resistance from the mining industry, which was the major beneficiary from the power subsidies. Project location zambia formerly northern rhodesia is located on the vast plateau in central africa. Foreign direct investment in zambia s mining and other sectors. January 9, 2019 mining companies accounted for more than a quarter of governments income zambia eiti report. All the content, except for external news items, is free for use. We provide indepth coverage of mining projects and the personalities reshaping the mining industry in the country. Smallscale mining and sustainable development within the sadc region 7 goldpanning, just as they would have to do as well in smallscale agriculture, to fulltime slavelike employment.
Manju kedia shah 1 1 the author is a consultant economist and adjunct professor of econo mics at campbell university. Manganese zambia chamber of mines zambias mining portal. Funding for this research was provided by international growth center, london, uk. The threats of climate impacts to sustainable development are critical and these have to be addressed if zambia is to move towards. Distinguishing drivers and implications for diversification a technical paper submitted in fulfilment of the mefmi fellowship programme in foreign private capital monitoring and analysis by wilson c. Preparatory assistance project advance for mining sector capacity development in zambia papamscdiz. Challenges and opportunities for greater participation. Foreign direct investment in zambias mining and other.
Recent economic developments zambia s recent economic performance suffers from a mix of domestic and international unfavourable. This is the second edition of the deloitte state of mining in africa report and is a consolidated. Zambia economic brief making mining work for zambia the. 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. In particular in the two provinces with large scale mining activities. Zambia is experiencing a large demographic shift and is one of the youngest countries globally by median age. The act provides for the investment thresholds that investors have to meet in order to qualify for fiscal and nonfiscal incentives. Twelve new studies from selected countries commissioned by mmsd bolivia, peru, ghana, malawi, mali, mozambique, tanzania, zambia, china.
Lessons from, zambia article pdf available in journal south african institute of mining and metallurgy 11110. Zambia has a long history of mining and a large known resource base of copper, emeralds and other deposits, as well as good potential for further discoveries given the high degree of prospectivity. 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 za mbia 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. Recent investments in mining activities are expected to yield increased so 2 emissions because of several new copper. This act may be cited as the mines and minerals development act, 2015, and shall come into operation on 1st july, 2015. In addition, the legacy of mining has left thousands of sites in africa contaminated by mining and associated mine dumps such as tailings and slag material. The impact of privatisation on the zambian economy from 1975 zambia s economy underwent a world record breaking decline. Copper mining in zambia history and future population increase lead to the establishment of settlements which rapidly grew into new towns. Mining in zambia the mining sector, in particularly copper mining, has for decades been the backbone of the zambian economy. Mining for zambia is an industry website aimed at promoting a better understanding of the zambian mining industry.
The term mining law here is used to mean those enactments which in various ways regulate the acquisition and tenure of mining rights and mining grounds, and the practice of mining right holders. A case for local contents in the mining industry article pdf available may 2018 with 1,967 reads how we measure reads. Chamber of mines of zambia, but has been conducted. Zambia possesses the worlds highestgrade deposits of copper and is ranked 7th largest copper producer in the world for producing copper in 20, zambia was the sixth largest producer of copper with 800,000 tons increasing from 572,793 tons production in 2008. Zambia possesses the worlds highestgrade deposits of copper and is ranked 7th largest copper producer in the world for producing copper in 20, zambia was the sixth largest producer of copper with 800,000 tons increasing from 572,793 tons production in. Mining has been a key if not the most important driver of the country. Background zambia s major economic activity is mining, and as at 2005, mining contributed about 65% of export earnings. Zambias social and economic backbone has always been its mining industry. The zambian copper mining industry as we know it today had its genesis in the 1920s.
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