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(LUSAKATIMES) Zambia to attract oil mining

Zambia to attract oil mining
Tuesday, March 17, 2009, 14:22

President Rupiah Banda ushers Chinese investors who were led by Chinese Ambassador to Zambia Li Quiangmin into State House for a meeting The Zambian government will soon advertise blocks that have been demarcated for Gas and Oil exploration in three regions.

Mines Minister, Maxwell Mwale, says the blocks are in North Western, Eastern and western provinces. He was speaking in Lusaka when he met a group of Chinese investors from Zhobgui group and the State Grid Corporation of China.

The two Chinese companies have shown interest in doing mineral exploration works in Mwinilunga district in North -Western Province.

Zhonghui Guohua Industry (Group) Limited and State Grid International Development made their intentions to invest in Mwinilunga during a meeting with Mines and Minerals Development Minister Maxwell Mwale and Minister for Trade, Commerce and Industry, Felix Mutati in Lusaka yesterday.

Zhonghui Guohua Industry (Group) Limited was represented by its chairman Mr Wang while State Grid International Development was led by Mr Du who is also the chairman.

Mr Mwale said past exploration surveys indicated that North Western and Western provinces also had gas and petroleum.

He said the Government would this year advertise a block for would be developers in the petroleum industry in the country.

Mr Mutati said even if the country was not spared by the effects of the global economic recession, the Government had in this year’s national budget proposed major incentives that would boost the mining industry.

Director geological survey department at the Ministry of Mines and Minerals Development, Kennedy Liyungu said Mwinilunga has strong indication of mineralisation.

Mr Mwale said the Government was open to foreign investments and was happy to receive the two investors whom he assured of the support from the Government.

Mr Mwale also urged the Chinese to invest in Zambia’s mining sector.

At the same meeting Commerce Minister, Felix Mutati, said Zambia’s mining tax regime has been adjusted to attract more investment.

And State Grid Corporation of China Chief Economist,Du Zhigang said his team is impressed with Zambia’s good investment climate.

Meanwhile President Rupiah Banda has called for increased investment in the energy sector.

President Banda says Zambia and other countries in Southern Africa are facing a shortage of power despite having abundant water resources.

The President said the Chinese are welcome to invest in the energy sector to help the country to generate adequate power.

He said Zambia needs a lot of investment to cushion the impact of the current global financial crisis.

State Grid Corporation of China Chief Economist DU ZHIGANG said his company will invest in the sector to help Zambia overcome the current power deficit.

The Energy deficit in the Comesa Region which stands at 20 percent will rise to 46 percent by 2011.
[ZNBC/Times of Zambia]

Labels: CHINESE, OIL, ZHONGHUI GUOHUA INDUSTRY LTD

posted by MrK @ 10:48 PM