Maravi

Investors have brought funds into mining, says Dr Mwansa

Investors have brought funds into mining, says Dr Mwansa
By Zumani Katasefa
Monday October 29, 2007 [03:00]

MINES minister Dr Kalombo Mwansa has said that new mine investors have put in an investment exceeding US $2 billion from the year 2000 to the end of 2006 into the mine industry. Dr Mwansa said this investment went into rehabilitation of plant and machinery and into starting new green field machinery.

“The government policy to privatise the mines laid the foundation for the resurgence. As you may all know, the new investors have brought in fresh funds into the mining industry. From the year 2000 to the end of 2006 total investment exceeded US $2 billion,” he said.

Dr Mwansa said already the investment had increased copper production from 257,000 in 2000 to 515,000 tonnes in 2006 adding that by 2009 copper production would be at 1.2 million tones.

“Improvement in metal prices is another important factor behind the resurgence of the mining industry. In the case of copper, prices in the international market rose from an average of US $0.72 per pound in 2000 to about US $3.00 at the end of 2006. Strong demand by the large economies of India and China explain the price change. This demand is likely to be with us for some time to come because of long term expansion programmes in the two economies,” he said.

Dr Mwansa said new discoveries of copper at Lumwana in North Western Province and in other areas of Zambia and nickel in the Munali Hills of Mazabuka district in Southern Province and uranium in near Lake Kariba also explained the current resurgence of the mining industry.

Dr Mwansa said government had allocated K8.3 billion for petroleum exploration in various parts of the country.

“Further, the geological exploration work has revealed indications of energy minerals that include uranium and coal. There are also strong indications of presence of oil and natural gas in various parts of Zambia. Exploration work for oil and gas is in progress in Lukulu and Kalabo in Western Province. Work in Chama and other parts of Eastern Province is almost complete. The nation will soon be informed of what the results are,” he said.

Labels: KALOMBO MWANSA, MINING, PRIVATISATION

posted by MrK @ 6:11 AM