Mining excavation expert has advised the Zambian authorities about the current mining production concentration risks which are weighing production. Professor Peter Chileshe a senior lecturer in the faculty of mines at the Copperbelt University bemoaned the concentration risks in a few mines such as First Quantum Mining (FQM) while the unsettled issues with other mining giants in the sector continues to weigh production capacity and could yield vulnerabilities of the over depended on mines.
“Theres too much of over – concentration of production and it is as though we have gone back to the ZCCM era (1982-2000). The majority of copper production comes from one company First Quantum Minerals, however this makes the mining firm very vulnerable,” Professor Chileshe said in an interview.
Zambia has seen increased production in mines located in North Western Province – the new Copperbelt of Africa – while overall production was nonetheless marred by unresolved issues which continue to weigh at other mines such as Vedanta’s Konkola Copper Mines (KCM) and Glencores Mopani Copper Mines (MCM).
Republican President Dr. Edgar Lungu called for increased participation of the mines in Zambia’s recovery plan. This the head of state hinted would be best achieved by increased stake in ownership by the authorities. The Economic Recovery Plan (ERP) has prescribed for a mining indaba in 1Q21 at which the mining tax regime will be discussed alongside other key issues that should help the sector operate at full capacity to benefit the country.
The Kwacha Arbitrageur