Singing the Same Old Song
There has been a flurry of announcements concerning our Mining Sector in Zambia:
1. The President has indicated that Government will discontinue the court case against Vedanta and that Vedanta Has agreed to be included in discussions in the resolution of the KCM issue.
2. Vedanta has made overtures to the Zambian Government and has offered to step up investment in Zambia’s Konkola Copper Mines (KCM) and implement several social responsibility programmes if it resumes control of the local firm. This investment includes a US$1.5 billion to capital mine development.
3. FQM has announced their intention to inject a US$1.25 billion for their mine expansion program.
4. There has been an announcement that Anglo-American Corporation will be returning to Zambia after a 20 year absence. Under the deal, Anglo will take 70% of a joint venture with Arc that will own licenses to explore Zambia’s.
There is much excitement in certain quarters in Zambia due to these pronouncements.
If Zambians would like to continue operating as we have from 1964 until now, a Zambia where:
– our means of production are controlled by outsiders;
– the benefit that we derive from our mines translate to job creation, a payment of some (minimal) taxes, payments to a few select suppliers to the mines;
– we derive benefit from the provision of some social amenities such as schools, hospitals, some roads, sports clubs etc;
if that is the Zambia we would like to see, then let us join in the celebration!!! We shall go back to the Nchanga Consolidated Copper Mines (NCCM) and Roan Selection Trust (RST) type of Copperbelt. We must then clap for HH and his UPND Government for taking us back to what we have experienced before!!
We shall continue to do what we have always done – the foreign investors will be singing the same old song and we shall be dancing the same old dance. Because we shall be doing what we have always done, we shall continue to get the same results – not much will change.
The benefit that we shall derive from the Billions of Dollars worth of minerals that will be mined will amount to a pittance as:
– some families will benefit as they will be gainfully employed, while those that they (the Zambians) give on the job training to will be rewarded with a pay 10 times what they get;
– These mining deals will have very little impact on the lives and livelihoods of most Zambians;
– tax holidays will be given in order for us to show how grateful we are for these institutions investing in Zambia;
– The mining houses will start to declare losses and thereby pay as little taxes as possible;
– The pledged investment amounts of more than a billion Dollars will be borrowed (even through syndicated loans through our local banking systems) and will most likely have the related interest charges passed on to the Zambian entities;
– The pledged expansion amounts will come to Zambia in the form of machinery and equipment – probably at inflated prices and over a prolonged period of time;
– Minerals will be sold and payments made outside of the country and only amounts enough to pay for salaries, taxes, suppliers to the mines and a level of maintenance will be brought back into the country. The bulk of the sale proceeds will be kept abroad.
The biggest travesty of all this is the fact that the wealth that is in our soils really belongs to Zambians but Zambians hardly benefit from their God given heritage.
Unless our leadership stop to carefully think through the model of mining that we have hitherto been engaged in, unless they begin to appreciate what should and could be, then we are afraid that we shall continue to dance to the same tune and Zambians shall continue to wallow in poverty in the midst of abundance.
At New Heritage Party, we are not joining in the celebrations.
#LetZambiansWin
CHISHALA KATEKA
President – New Heritage Party.