Maravi

Zambia needs a pioneering spirit, says Rupiah

Zambia needs a pioneering spirit, says Rupiah
Written by Mutuna Chanda and Mulimbi Mulaliki in Solwezi
Sunday, April 19, 2009 4:23:47 AM

PRESIDENT Rupiah Banda has said Zambia needs a pioneering spirit like that of late president Levy Mwanawasa to lift it out of poverty. And Equinox Minerals president Craig Williams said Zambia deserves large investments at the scale of Lumwana but that this could only be done if the government backed its words with actions.

Officially opening Lumwana Copper Mine in Solwezi on Friday, President Banda said he was touched by the passion and the belief that the late president Mwanawasa had for the development of Lumwana mine and that he was proud to see the project that the deceased head of state had nurtured and supported finally come to fruition.

He said the development of Lumwana Copper Mine - Africa's largest copper mine - offered Zambia a number of lessons even as the country went through hard times.

"The first lesson we learn from this project is that for us to succeed, we must have perseverance," President Banda said. "We must have a determined focus to achieve our goals at all costs, even when the going is seemingly tough and challenges seem insurmountable. Many of you may not know but Equinox is the fifth investor that attempted to develop this project and they have succeeded where others did not because they persevered. As a nation we need to take up a mindset of perseverance because when challenges look formidable we can mobilise ourselves and resolutely confront our challenges in order to realise that which others think is unattainable."

He said Equinox managed to secure a US $664 million debt finance package from international banks in 2006 despite the challenges it faced in raising investment funds.

"This underscores the belief the company has in the government and people of Zambia to place such large amounts of money at risk in a greenfield project," President Banda said.

He said the value of mutual trust that developed between the government and Equinox showed the difference between serious investors and those who were abandoning mining operations owing to the fall in copper prices on the world market.

"The second lesson we learn is that success is not easy. During this period of planning and developing the project, colossal amounts of money have been invested in infrastructure, mining facilities, community sustainability and business development programmes. I am informed that in the 12 years of the project development, Equinox have invested over US $1 billion which included the development of a modern new town in Lumwana," he said. "The mutual trust between the government and Equinox has resulted in a world class development that has opened up North Western Province as a new economic hub. This could not have been possible if Equinox were a 'fly-by-night' investor that only takes advantage of economic opportunities when times are good."

President Banda said Zambia would encourage more investors such as Equinox, which had a long term and mutually beneficial view of investment in the country.

"Equinox has also proved to be a genuine partner in uplifting the wellbeing of the citizens through their corporate social responsibility which have included the following community development programmes: the development of a modern new town; a home ownership scheme for the company's employees; training and development programmes for the employees largely recruited from surrounding villages; construction of new classrooms, teachers' houses, health clinics, the first library in the area as well as a women's centre in Mutanda; and the repair and urpgrading of the T5 highway all the way to Mwinilunga. Lumwana has thus created opportunities for local and international investors into this area," President Banda said.

He encouraged Lumwana to consider processing the copper that it mined and add value by selling finished products made in Zambia to the international market.

"My government expects that Equinox will take up this opportunity and continue to grow their investment and explore new avenues," he said. "We expect you to: continue with your exploration programmes; be the first company to produce the famous yellow cake seeing that you have uranium deposits on your mine already; consider investing in metal processing facilities that add value to your metal. My government strongly believes time is ripe for investors like you to consider processing the copper that you mine and add more value by selling finished products made in Zambia to the same international market."

He encouraged the shareholders of Lumwana to engage the government on matters that they considered could destabilise their investment.

"I wish to reiterate the fact that Zambia still remains an attractive investment destination," President Banda said. "You are in Lumwana, in Zambia and we want you to attain your goal and touch your vision in Lumwana. We hire you as our ambassadors. Speak well of Zambia. Tell others in Australia and the world at large how good it is here and encourage them to follow your brave example."

He noted that Lumwana area, which had been backward a few years ago had been turned into a modern economic hub providing employment and facilitating investment.

And Williams urged the government to continue honouring its obligations towards Lumwana and that it could not afford policy delays.

"From the very day we commenced our investment in Zambia in 1996, Equinox had always taken the long-term view because we believe it's the only way to be credible, serious and that investment can be successful," Williams said. "With this in mind it is no wonder that when the international financial crisis gripped the world late last year, while some investors ran at the first sign of trouble, the message we gave you, Your Excellency and the people of Zambia was that we will employ, we will build, we will stay, we will continue to deliver on our obligations."

He said the Lumwana Copper Mine project was not yet successful as this would only be when the shareholders were paid their return on investment.

Williams said Zambia deserved to have more investments like Lumwana.

He praised the financiers of the investment in Lumwana, shareholders in the mine, employees, the government and Zambian community for the support that they rendered in the development of the project.

And director of Lumwana Copper Mine Dr Peter Matoka reflected on how the colonial administration had neglected rural areas such as North Western Province.

He expressed the irony of North Western Province, which was at the bottom of the ladder of Zambia's development, being the host of the largest copper mine in Africa.

The Roan Selection Trust (RST) first identified copper deposits in Lumwana in 1961.

Meanwhile, commissioning Lumwana Zesco 330/33 KV sub station President Banda commended Zesco management for their continued supply of electricity to the mining companies in the country.

President Banda noted that Zesco was capable of generating and distributing power to both the mines and other industries.

Zesco managing director Rhodnie Sisala disclosed that they were in discussion with Lumwana and Kansanshi copper mines to see how they could connect them to the Democratic Republic of Congo (DRC) power interconnector to ensure steady supply of electricity.

And officially opening Lumwana school, President Banda urged parents to monitor the progress of their children.

"It is unfortunate that most African parents think that education is dropping a child at the gate of the school, but my encouragement to you is that you must monitor the progress of your children by asking their teachers concerning your children's performance," he said.

President Banda was also treated to a poetic performance from Lumwana mine primary and pre-school children, outlining their ambitions.

President Banda told one of the children who said he wanted to become a president that he needed to be tough because there were 'fights' during elections.

Labels: EQUINOX, RUPIAH BANDA

posted by MrK @ 3:23 AM