The other side of Zambian mining
By Nawa Mutumweno – Whereas it is a naked truth that mining has numerous negative factors such as environmental concerns, it is imperative to shine a torch on some positive strides the top sector has taken on the country’s economic trail.
Environment
The mining industry fully understands the importance of a clean pollution-free environment, especially now that we have the challenges of climate change.
The industry is cognisant of the nature of industry – large scale mining could have positive and negative environmental impacts on the local and wider level, hence the numerous measures that members of the Chamber of Mines of Zambia have undertaken to safeguard the environment.
It is worth noting, however, that since 1906 until privatisation was completed in 2000, there was no law for the protection of the environment from mining operations in Zambia. This is despite the fact that commentators have unfairly and incorrectly been blaming the new mine owners on the Copperbelt and Kabwe for environmental degradation.
The Environmental Protection and Pollution Control (EPPC) Act was only enacted in 1999. In view of this situation, the new mine owners have had to invest heavily in cleaning up the environment and safeguard human and natural life after decades of long social neglect.
To illustrate this point, here are some of the measures the new mine owners have undertaken to protect the environment:-
- Replacement of Nkana Smelter which due to old technology emitted huge amounts of sulphur dioxide into the air, This was done at a huge cost of $450 million.
- Replacement of Old Konkola Concentrator which had been discharging offensive elements into the natural waters; the new one is zero discharge
- Replacement of both Nchanga Concentrators to new technology with zero discharge
- New Muntimpa Pipeline, a new tailings disposal pipeline that eliminates leaks at Nchanga
- New Acid Plant at Mufulira Smelter that reduces emissions by 50%; a second Acid Plant planned for 2013 to increase reduction of emissions to at least 97%
- A new Acid Plant at Nkana Cobalt Plant that has reduced emissions to at least 97%
- Industrial Water Management , which has seen construction of ponds for cleaning water before discharge and process water recycling
- Under corporate social responsibility (CSR), Mopani Copper Mines Plc has constructed self-contained water borne toilets to replace inhuman communal toilets in Wusakile and other townships
- Mining houses are annually contributing to the Environment Protection Fund
These are but only some of the initiatives that mines in Zambia have put in place to ensure reasonable if not total protection of the environment.
2013 Budget – Observations
The mining sector acknowledges Government’s resolve to maintain certainty and retain investor confidence in the sector by not making any adverse tax revisions of negative consequences in the 2013 budget.
The budget clearly supports expenditure on economic and social sectors, which is very important for growth.
Notably, and gratefully so, the budget shows great investment in infrastructure – key requisites for attracting investment and enhancing industrial efficiency.
The Link Zambia 8 000 project President Sata launched recently should ease the transportation of goods and services when completed in the planned five years. That is at a time copper output would have picked to 1.2 million tonnes per year.
Future Outlook
The outlook of mining in Zambia is very promising. Output is expected to peak 1.5 million tonnes annually in the next four-five years. This is, however, dependent on the right and stable legal, policy and regulatory environment. There are several projects which are already in the pipeline and these include:-
- The Konkola Deep Mining Project (KDMP)
- The Mindola Synclinorium
- The Lubambe Copper Mine and Concentrator Plant
- The Chambishi South East Ore Body
- FQM’s Kalumbila Mine project in North-Western Province
- The expansion of Lumwana Mine
- The expansion of Chambishi Copper Smelter
- The set up of a new smelter at Kansanshi and
- A number of other smaller mining projects.
Challenges
The Chamber of Mines identifies these as follows:-
– An unpredictable fiscal regime and policy environment which creates uncertainty.
– High levels of mistrust among the key stakeholders:- Government, the public, investors, employees, suppliers and service providers and civil society
– A lack of desirable industry skills; pronounced critical technical skills shortage and a lack of skills development facilities
– Poor or non-existent railways, roads and air links, resulting in high transport costs
– Inadequate power generation capacity
– Poor local manufacturing and supply capabilities, resulting in high costs for goods and services
– High cost of production in old deep mines with lower mineral grades
– High rising labour costs without significant improvements in labour productivity
– Unrealistically high operations and a negative perception of the sector
– A considerable expectation of high corporate investment
When compounded, these result in the Zambian mining industry being in the upper quartile in world copper production cost benchmark.
Undeniably, the mining sector is critical to the economic diversification of the country and overall development aspirations.
Parliament can make a difference to support the sector, accelerate growth and achieve its full potential by persuading the Executive to consider the following:-
- A broad-based stakeholder’s consultative process on regulation
- Reconsideration of proposal to revise capital allowance
- Acceleration of the supply of reliable electric power and generating capacity
- Implementation of transport network infrastructure be fast-tracked
- Public expectations and perception be better managed through correct information sharing and increased fiscal transparency.
- Additional support for a more efficient local manufacturing industry capable of supplying various key low and high value-added goods
- Improved social service delivery by the public service
The mining industry will continue to lead the way in Zambia’s march to economic prosperity for many years to come.
