July 6, 2022

jdean-law

Politics and lawyers

New Dawn government will deliver high-quality, well-paying jobs to thousands of Zambians-Kabuswe

The Minister of Mines and Minerals Development Paul Kabuswe has said that the New Dawn government will deliver on its promises to provide high-quality, well-paying jobs to thousands of Zambians.

In a statement made available to the media, addressing a number of issues affecting the mining industry, Mr Kabuswe said that the government is working to maximise the economic contributions of the Mining Industry to ensure that the sector is run in a sustainable and socially responsible manner.

Mr Kabuswe said that, with regards to the release of a recent economic impact report carried out by esteemed economic consultant Oliver Saasa, the upcoming Investments by First Quantum Minerals (FQM) into the Kansanshi Mine and Enterprise Nickle Mine will help to create around 18,000 new jobs.

According to the Minister, the report, published by Premier Consult Limited, predicts that the Investments will result in between 1,300 to 1,700 direct jobs being created, as well as an additional 16,500 through the multiplier effect. There will also be a further 1,800 vacancies during the 18-month construction phase at Kansanshi.

The Minister also refuted allegations that a commitment was given to Vedanta Resources to have their license restored, adding that it is a widely held view within Government that Vedanta sacrificed their social licence to operate in this Country through their past failings.

Mr Kabuswe also said that following the Court of Appeal’s decision to stay proceedings and refer the KCM matter back to arbitration, a decision supported by the Supreme Court, a hearing is now set for 9th January 2023 and that, in the interim, efforts are continuing to find a solution that unlocks KCM’s potential and delivers maximum benefit to the people of Zambia.

On Mopani, the minister did not mention the Glenco corruption saga, but pointed out that the Government is of the view that market-based capital raising solutions should be implemented at Mopani, rather than relying directly or indirectly on the limited public finances.

The Minister further said that, as the President has said previously, the government is very close to finding a suitable private Investor to further ramp up production at Mopani Mines.

Below is the full statement

PRESS STATEMENT FOR IMMEDIATE RELEASE UPDATE ON DEVELOPMENTS IN THE MINING INDUSTRY
01.06.2022

The Minister of Mines and Minerals Development Hon. Paul C. Kabuswe wishes to update the Zambian people on the recent developments in the Mining sector.

As citizens may be aware, over the weekend the Ministry of Mines and Minerals Development completed its audit on the Administration and Management of mineral rights at the Cadastre Department. This report has now been handed over to the President and the Ministry expects the issuance of new mining licenses to resume soon. This audit was carried out to ensure that all new licenses are awarded in a transparent and efficient manner, which fulfils our election pledge of generating maximum economic benefit to the Zambian people and safeguarding the interests of our Country.

I also want to update Zambians about developments at Konkola Copper Mines (KCM) and Mopani Mines. The Ministry is aware of large amounts of misinformation circulating in relation to these assets and wishes to reiterate that we are working hard to deliver sustainable, long-term solutions for both mines.

Early last month, the Acting Administrator General and Official Receiver for Zambia Celine Meena Nair assumed the position of Provisional Liquidator at Konkola Copper Mines. This is in accordance with the Corporate Insolvency Act, which provides that where there is a vacancy in the office of Provisional Liquidator, it must be filled by the Official Receiver until the appointment of a liquidator. Ms Nair is a highly qualified lawyer who previously worked as Principal Legal Officer at the Ministry of Justice. The Ministry of Mines and Minerals Development fully supports the work of Ms Nair in this role.

Ms Nair has subsequently appointed Jason Kazilimani of the professional services firm KPMG to act as her agent in relation to the liquidation proceedings at KCM. Mr Kazilimani is a chartered accountant who currently serves as the senior partner and Chief Executive Officer at KPMG in Zambia. He also has the full support of the Government.

As the Government and ZCCM-IH continue to work through the arbitration process for KCM, we wish to refute the suggestion that a commitment was given t Vedanta Resources to have their license restored. Indeed it is the widely held view within Government that Vedanta sacrificed their social licence to operate in this Country through their past failings.

Following the Court of Appeal’s decision to stay proceedings and refer the matter back to arbitration – a decision supported by the Supreme Court – a hearing is now set for 9th January 2023. In the interim, efforts are continuing to find a solution that unlocks KCM’s potential and delivers maximum benefit to the people of Zambia.

In the case of Mopani Mines, the Government is of the view that market-based capital raising solutions should be implemented at Mopani, rather than relying directly or indirectly on the limited public finances. As the President has said previously, we are very close to finding a suitable private Investor to further ramp up production at Mopani Mines.

With regards to the release of a recent economic impact report carried out by esteemed economic consultant Oliver Saasa, the upcoming Investments by First Quantum Minerals (FQM) into the Kansanshi Mine and Enterprise Nickle Mine will help to create around 18,000 new jobs.

The report, published by Premier Consult Limited, predicts that the Investments will result in between 1,300 to 1,700 direct jobs being created, as well as an additional 16,500 through the multiplier effect. There will also be a further 1,800 vacancies during the 18-month construction phase at Kansanshi.

This follows the President’s recent announcement at the Investing in African Mining Indaba in Cape Town that FQM is investing $1.25 billion to expand production and extend the life of the Kansanshi Mine, as well as a further $100 million to bring the new Enterprise Nickel Mine online.

According to the report, these Investments stand to generate between $380 million and $775 million in additional tax revenues, depending on commodity prices, which can then be spent on critical areas such as education, healthcare, Infrastructure and the Constituency Development Fund.

These Investments, as well as the continued efforts at KCM and Mopani, form part of the Government’s overall plan for increasing copper production in Zambia to 3 million metric tonnes of copper annually within the next ten years.

By maximising the economic contributions of the Mining Industry, and ensuring that the sector is run in a sustainable and socially responsible manner, the New Dawn government will deliver on its promises to provide high-quality, well-paying jobs to thousands of Zambians.

Paul C. Kabuswe
MINISTER OF MINES AND MINERALS DEVELOPMENT



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