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African Mining Indaba: Zambia Finmin on plans to ramp-up copper production over the next decade
Using the African Mining Indaba 2023 as an opportunity to revive Zambia's stagnant copper mining sector, CNBC Africa's Fifi Peters spoke to Zambian Finance Minister, Situmbeko Musokotwane.
Wed, 08 Feb 2023 11:49:34 GMT
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AI Generated Summary
- Zambia aims to triple copper production to three million tons in the next decade, emphasizing job creation and business opportunities.
- The country seeks to resolve debt challenges through collaborative frameworks while assuring investors of its export-centric mining sector's resilience.
- Zambia underscores the importance of balancing mineral production growth with local beneficiation and socio-economic development in the mining industry.
Zambia is using the African Mining Indaba 2023 as a platform to rejuvenate its stagnant copper mining sector. Situmbeko Musokotwane, the Zambian Finance Minister, sat down with CNBC Africa's Fifi Peters to discuss the country's ambitious plans to ramp up copper production over the next decade. The third day of the Indaba saw a convergence of stakeholders from across the globe with diverse agendas, and Zambia's focus remained clear - to triple its copper production from less than one million tons to three million tons in the next ten years. This strategic move aims to boost production, create job opportunities, and stimulate business growth in the country. The minister highlighted the significance of engaging with the private sector to bring dormant mining assets back into operation, with a specific emphasis on Mopane Copper Mines. Companies like Sabania Stillwater have already expressed interest, positioning themselves as potential partners to increase Zambia's copper output. The economic environment and tax incentives in Zambia were also promoted to attract investors to support the country's efforts to revitalize its mining industry. The issue of Zambia's debt challenges did not go unnoticed at the Indaba, raising concerns among potential investors. However, Minister Musokotwane reassured stakeholders of Zambia's commitment to resolving its debt issues through collaborative approaches like the common framework. Despite the debt burden, the minister emphasized that the export-oriented nature of the mining sector allows investors to earn foreign exchange independently, mitigating concerns about accessing foreign currency due to national indebtedness. In addition to exporting, Zambia aims to encourage local beneficiation and value addition in the mining sector. The minister stressed the importance of establishing agreements with investors that foster socio-economic development, including local community engagement and support for local businesses. Musokotwane warned against the historical trend of neglecting mining production in favor of value-added industries, emphasizing the critical balance between value addition and maintaining a robust mineral production output. Reflecting on past mistakes, the minister underscored the necessity of increasing copper production to combat poverty effectively in a growing population. Comparing Zambia's copper production to that of Chile, Musokotwane urged African governments to prioritize production growth to drive economic prosperity and social development. The interview concluded with a strong emphasis on the imperative to produce more without compromising mineral output while striving for value addition in the mining sector. Minister Situmbeko Musokotwane's insights shed light on Zambia's strategic vision to revitalize its copper sector, attract investments, and foster sustainable economic growth.
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