Message Ven 21 Sep 2012 13:52

Canadian mining firms happy with Zambia’s copper boom

Canadian mining firms happy with Zambia’s copper boom
September 21, 2012 By KATONGO CHISUPA
CANADIAN Mining companies say they are proud to have contributed to retaining Zambian annual copper production to its historic high, the Canadian-EU Mining Council (CEUMC) said in a statement yesterday.
It added that the companies are now set to play a key role in continuing to develop the country’s mineral resources in a sustainable way that will benefit all of Zambia’s population.
In a study commissioned on behalf of the Canada-EU Mining Council,Wood Mackenzie has calculated that the total copper mined in Zambia in 2011 was 683,000 tonnes per annum.
The study adds that this is just under the 700,000 tonnes per annum produced during Zambia’s peak period in the 1970’s.
“The close working partnership between Canadian mining companies and the Zambian government has been a critical factor in achieving this success,” the study states.
The Council further states that the total production in 2011, 372,000 tonnes has come directly from mines operated in Zambia by Canadian companies.
“The partnership between Canadian mining entities and the Zambian people has already delivered significant benefits. But it is only the beginning,” the council observes.
The CEUMC gives an example of one of its members, First Quantum Minerals (FQM) which plans to invest more than US$4 billion over the next two to three years into building its new Sentinel mine in Solwezi, north western province, which will produce 300,000 tonnes of copper per year by 2015.
FQM is also expected to upgrade its Kansanshi operation in Solwezi to increase its production to 400,000 tonnes, as well as building a new smelter which will process 1.2 million tonnes of copper concentrate locally.
The council adds that apart from adding an additional 450,000 tonnes of new copper mining capacity and an additional 300,000 tonnes of copper smelting capacity, the investments are expected to create more than 2,000 new jobs as well as making a significant contribution to government revenues.
According to the CEUMC, FQM’s copper production alone in Zambia is expected to increase to approximately700,000 tonnes by 2015.
“Canadian mining companies remain committed to sustainable management of operations, and to achieving the right balance between the interests of the communities, the country and the companies,” the council states.
The Mining Council says the strength of this Canadian-Zambian partnership was highlighted in an independent report issued in March 2012 for the Zambia Extractive Industry Transparency Initiative (ZEITI).
Using audited 2009 figures, the Kansanshi mine produced 94 percent, of all the corporate income tax payable by the entire extractive industry that year.
“Most significantly, this project contributed to 25 percent of the total government revenue collected from all extractive projects and sources for this period, and represented approximately US$128 million dollars from the production of 244,979 tonnes of copper,” the Council further observes.
This amount represents only part of the total contribution of more than US$2 billion in taxes paid by Kansanshi in Zambia since starting operations in 2005. Since then, no other mine has come close to producing as much copper or as much revenue for Zambia.
Working with local partners, Canadian mining companies have invested over K150 billion to help address the pressing social and economic issues facing Zambia.
Investment has gone areas such as health, education, food security, unemployment, filling the infrastructure gap, and other areas.
“Canadian mining companies are proud of what has been achieved so far in Zambia.
And they are committed to building on that success to see Zambia return to its rightful place as a leading economic player in Africa,” the council adds.
It emphasizes that the success of the partnership has been based on an open dialogue, a clear set of fixed rules, and a proper sharing of the
risks and rewards associated.
Ce que l'on conçoit bien, s'énonce clairement, Et les mots pour le dire arrivent aisément. BOILEAU