( 3 minutes read)
· The Chamber of Mines in Zambia has asked Government to be circumspect on its policies towards buying stakes in mining companies since it could scare away foreign investors
· Lubambe Mine representative Nick Bowen said the statement that Zambia wanted to take significant stakes in unspecified mines led to fears of nationalization. This, he said, could lead to slowing down of investments
· The Zambian government has recently acquired 100% of Glencore’s Mopani Copper Mines and Vedanta’s Konkola Copper Mines – KCM local operations in the past two years
The Chamber of Mines in Zambia has asked the Government to be circumspect on its policies towards buying stakes in mining companies since it could scare away foreign investors.
Speaking during a panel discussion at the just ended 2021 Mining Indaba, Lubambe Mine representative Nick Bowen said the statement that Zambia wanted to take significant stakes in unspecified mines led to fears of nationalization. This, he said, could lead to slowing down of investments..
Bowen said if the country is to attract investments; messages should be clear and categorical, leaving any doubts in the minds of investors. However, Finance Minister Dr Bwalya Ng’andu explained that Zambia was not looking to take over more mining companies, nor was the government planning to nationalize the industry.
The Zambian government has recently acquired 100% of Glencore’s Mopani Copper Mines and Vedanta’s Konkola Copper Mines – KCM local operations in the past two years. The takeover of KCM, an Indian company registered in London had created a lot of controversy and slugfest between the government and the company before going for a settlement.
Dr Ng’undu pointed out that the government cannot engage in nationalization of mines because it has learnt lessons from other copper mining countries.The Finance Minister further stated that Zambia will also get a better understanding of mining taxation and royalties from running operations like those previously owned by Glencore such as Mopani.
