MINING REVENUES HIT US$7 BILLION
…as Copper boom raises benefit questions for Zambia
A debate has emerged over how much the country truly benefits from its copper wealth after Democratic Progressive Party (DPP) president Antonio Mourinho Mwanza questioned the distribution of revenue generated from the sector in 2024.
In a statement, Mwanza noted that Zambia produced more than 820,000 tonnes of copper last year, which, based on average trading prices on the London Metal Exchange, translated into an estimated export value of about US$7 billion.
However, he argued that the bulk of earnings accrued to mining firms rather than the State and ordinary citizens.
According to him, major operators such as Konkola Copper Mines, First Quantum Minerals and Mopani Copper Mines accounted for the largest share of returns from copper production.
Mwanza stated that while government revenue is derived from mineral royalties, corporate taxes, Pay-As-You-Earn contributions and dividends through ZCCM Investments Holdings, this amounted to only a fraction of the total export value.
He emphasized uncertainty surrounding production transparency, saying, “we don’t know with absolute certainty the exact amount of copper being produced and exported every day.”
The opposition leader maintained that the country must rethink its mining strategy if copper is to drive meaningful development, stating, “producing copper is not the real achievement.”
He added that the real measure of success lay in ensuring citizens benefitted, saying, “the real achievement is ensuring that copper wealth stays in Zambia and improves the lives of Zambians.”
Mwanza further argued that exporting raw copper deprived the country of employment and industrial growth opportunities, urging authorities to encourage local processing industries.
In his words, “stop the exportation of raw copper and set up processing and manufacturing industries right here in Zambia.”
He also called for reforms in mining taxation, strengthening of monitoring systems to curb tax leakages, and enhanced state participation in mining investments to secure greater national benefit.
The DPP leader further noted that mining operations consume large amounts of electricity supplied by the national utility, Zesco, placing pressure on domestic consumers and small industries.
Meanwhile, Mwanza urged policymakers and citizens to focus on outcomes rather than production figures alone, asking, “how much do we truly benefit?”
Who is supposed to set up value addition industries? The government? Mr. Mwanza, come up with such a venture.
It is unrealistic to expect the government to venture into such businesses. It is the citizens’ responsibility to drive such enterprises. The government’s responsibility is to create an enabling environment.