Maravi

Government to increase stake in mines

Government to increase stake in mines
By Gift Chanda in Sinazongwe
Wed 01 Feb. 2012, 14:01 CAT

THE Zambian government says it will not nationalise mines but instead increase its stake to about 35 per cent. Mines minister Wylbur Simuusa said the government wanted Zambian participation in the mining industry to increase.

Speaking when he toured Maamba Collieries mine on Monday, Simuusa said most governments globally were currently considering raising their stake in mining companies to about 35 per cent and the Zambian government would want to take that step too.

Simuusa noted that, through the state mining-investment company, Zambia Consolidated Copper Mines -Investment Holdings (ZCCM-IH), Zambia currently owns less shares in mining companies thereby limiting proper supervision of the mining companies.

Currently, ZCCM-IH holds between 10 and 20 per cent of major mine projects across the country and Zambia has been exerting ore control on mineral exports.

"In the previous regime, it was very clear that the mining sector was not being properly supervised and I know that is one thing that undid the previous regime," Simuusa said.

"In this new government we want the mining sector to be properly supervised …in fact, we know that the key to turning this nation around is in our mineral resources. One of the measures we want to take as PF government is to increase Zambian participation in our mining industry…we are not going to nationalise the mines but we would want to increase our participation."

Government recently said it was considering buying a stake in the financially troubled Munali Nickel Mine were it currently owns 0.97 per cent.

"It is sad that Zambia being so richly endowed in mineral resources, we have got copper and high grade coal yet we are ranked among the 20 poorest countries in the world. That is quiet unfortunate and as the PF government, we want to turn this around," Simuusa said.

He further called on mining company owners to ensure that preference was given to local suppliers of goods and services to the mines. He said that was the only way the mining companies would be helping the government create more jobs for Zambians.

And Simuusa commended Singapore's Nava Bharat Pte , the majority owners of Maamba Collieries, for awarding salary increments to workers at the country's largest coal producer.

He said it was cardinal that benefits from the mining companies started accruing right with the miners. Earlier, Nava Bharat Private Limited chief executive officer, Ashwin Devineni said works on setting up the new coal handling processing plant in time for the resumption of full-scale mining activities and sell of high grade coal in March, were on course.

Nava Bharat acquired a 65 per cent stake in Maamba in 2009 and planned to spend U$108 million on modernising the mine.

The new mine, which was expected to produce 360,000 tonnes of coal in its first year, aims to reach a maximum output capacity of 2 million tonnes per year.

It also expects to ramp up the washed coal sales from about 30,000 tonnes a month to about 50,000 tonnes by 2013.

Labels: MAAMBA COLLIERY, MINING, WYLBUR SIMUUSA, ZCCM-IH

posted by MrK @ 5:37 PM