Maravi

CMZ optimistic copper price rise will ease mines operation costs

CMZ optimistic copper price rise will ease mines operation costs
Written by Florence Bupe
Thursday, August 06, 2009 5:24:35 AM

THE Chamber of Mines of Zambia (CMZ) has expressed optimism that the current upward trend in copper prices on the international market will ease operation costs for local mining houses.

Commenting on the recent surge in copper prices on the international market, CMZ president Nathan Chishimba said with more attractive metal prices, operational costs for the mines were likely to ease, hoping that this would in turn result in spiral benefits for the country’s economy.

“The first benefit which one could talk about is that the pressure of operational costs of local mines will ease. The high prices will also boost confidence in other sectors of the global economy and this will help relieve economies of the effects of the financial crisis,” he said.

Chishimba said more investors would be willing to venture into projects that would foster economic growth once confidence returned to the mining sector.

He noted that there was need for the local industry to help boost investor confidence through the provision of a conducive and consistent business environment.

“In order for this improvement to be sustainable, we are required to assist build confidence by providing a conducive and consistent environment that will make people willing to risk their money,” Chishimba said.

He said an improvement in copper prices on the international market was a clear indicator that the economy was moving in a positive direction.

Chishimba, however, stressed that the price of the metal was not expected to rise dramatically above the current levels.

Last week, copper prices on the international market hit a ten month high of US $5,737 per tonne.

Chishimba also said the contribution of the mining sector to the country’s economic growth was underrated.

“If you critically look at the mining industry, you will discover that it has strong linkages with other sectors of the economy. The policies in place strongly determine mining related sector growth. If as a country you have high operational costs, growth will be limited,” said Chishimba.

Labels: CMZ, COPPER

posted by MrK @ 4:25 AM