Maravi

Ground Focus sees copper oxide production doubling

Ground Focus sees copper oxide production doubling
By Misheck Wangwe in Kitwe
Mon 30 Jan. 2012, 13:00 CAT

GROUND Focus Mining Limited says copper oxide production will double this year if the government stops foreign mining firms from importing minerals.

In an interview in Kitwe, company managing director Jimmy Mubashi said mining business for local investors was at risk because the government had not provided restrictions for trans-national mining companies that were importing minerals into the country and had blocked local mining firms from supplying copper ore.

He said last year Ground Focus purchased in excess of 6,600 tonnes of copper oxide and the figure this year was likely to increase if the government came up with pragmatic policies of creating an enabling environment for local investment in the mining sector.

Mubashi said local investment in mining could contribute significantly to national economic growth and help government create the much-needed employment if deliberate policies were created to protect local investment.

"We have abundant copper in our country and we need to utilise this copper to empower ourselves as a people and allow our economy to grow further. It does not in any way make economic sense for giant mining firms to start importing copper from the Democratic Republic of Congo when local mining firms also need to supply copper ore to the mines for them to survive," he said.

Mubashi said the cost of doing business for the local mining investors was high and there were no tangible incentives from the government to protect the local industry.

He said the government should have also considered exempting local mining firms from the six per cent mineral royalty tax and only apply it on trans-national mining firms that were making huge profits.

"We are also cognisant of the fact that we need to contribute to the country's economic growth through revenue but this should be a considerable amount. Every government has an obligation to protect its local business as a way of empowering citizens with incentives of growth," he said.

Labels: COPPER

posted by MrK @ 4:53 PM