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Govt to review mining Act |
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Friday, 05 February 2010 |
Government will this year review the Mines and Minerals Act No. 7 of 2008 and the Gold trade Act under the business license reform programme.
LIivingstone, February 5 -- -Government will this year review the Mines and Minerals Act No. 7 of 2008 and the Gold trade Act under the business license reform programme.
Vice President George Kunda said this would reduce the cost of doing business and to make Zambia attractive to investors.
Mr. Kunda said Government was keen to promote investment in the mining sector for both small and large scale projects and will support initiatives that add value to the development of the sector.
The vice President was speaking at the official opening of the fifth Annual Africa Mining Congress in Livingstone this today.
He said it was the policy of government to maintain a conducive business environment for the continued growth of the mining sector which was the country’s economic mainstay.
Mr. said the reduction in the metal prices and financing resulting from the global economic crisis adversely affected the mining activities in the country and the SADC region as a whole.
The Vice President explained that for Zambia, the situation led to some mines being put on care and maintenance while some projects were suspended.
He,however, said it was gratifying that all the mines have resumed operations and hoped that all other suspended mining projects would soon resume.
And Mr. Kunda has appealed to mining companies and financiers to take advantage of the public private partnership initiative and partner with government in some key projects.
Some of the key projects are the coal exploration and development project in Luano and Luangwa valleys and the steel project.
“The exploration of coal in Luano and Luangwa Valleys is promoted for potential exploration of coal for use in the generation of thermal power. This package is being promoted due to the abundant coal potential in the area and in the light of a regional power shortage,” explained Mr. Kunda
The vice president said Zambia has substantial deposits of iron ore, manganese and coal which would form a basis for the development of the steel industry for the regional market.
He told the delegates that the Zambian mining sector offered great opportunities through a wider range of minerals that can be exploited and urged them not to concentrate on base metals alone.
“The country has proven deposits of the best gemstones in the world and a range of industrial and energy minerals. The challenge to the companies gathered at this forum is to take a closer look at the deposits and find a way of turning them into large commercial undertakings,” Mr. Kunda said.
He stressed that government has already laid the foundation for the building of a sustained private sector led mineral based industry.
He said the incentives to investors, progressive government policies coupled with the current favourable commodity price on the world market have made the country’s mining sector more attractive for investors.
The African mining Congress is an annual meeting of mining companies and investors from around the world with mining projects in Africa.
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