We shall not nationalise mines - Simuusa

[LesCrozes]

We shall not nationalise mines - Simuusa

By Maimbolwa Mulikelela

GOVERNMENT has reiterated that it has no intention of nationalising the mining firms but plans are underway to increase its shares from the current 20 per cent per cent to 35 per cent to encourage more Zambian participation.

Mines Minister Wlybur Simuusa said the Government would like to maintain 65 per cent shareholding for the investor and 35 per cent for the Government through Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH).

Mr Simuusa said the development would encourage Zambians to fully participate in the running of the mines through ZCCM-IH.

He said when the Government talked about increasing its stake in the mining sector, the international market was jittery.

"We want the ratios to be 65 per cent to 35 per cent, when that ratio was reported in the international media, I was told the market shares danced but I was surprised at the nervousness in the industry and the international community," Mr Simuusa said.

Speaking when he toured Maamba Mine yesterday, Mr Simuusa said the Government would not nationalise the mines but was considering increasing its shareholding structures in the mining firms.

"As Mines minister what I am saying is that we are not going to nationalise the mines but we would want to increase our participation as well as increasing our shareholding in the mining companies, "he said.

Mr Simuusa cited Maamba Collieries Limited (MCL), where Nava Bharat Singapore Property(PTY) Limited acquired 65 per cent equity stake from ZCCM-IH while Government owns 35 per cent.

That is quite unfortunate and as a new Government we want to turn this around and the key starts here and you are partners to help us.

Through the ZCCM-IH, the Zambian Government owns 100 per cent shares in Ndola Lime, 15 per cent in Luanshya Copper Mine, NCF Africa Mining Chibuluma Mine and the Copperbelt Energy Corporation(CEC).

It also has 10 per cent shares in Mopani Copper Mines(MCM) and Chambishi Metals with a further 20.6 per cent in both Konkola Copper Mine and Kansanshi.

"As Maamba you are a unique case, it is the only mining firm where Government owns 35 per cent and the investor owns 65 per cent and that has been my magic number. If you have been following my statements I have been saying that one of the measures we want as PF Government is to increase Zambian participation in our mining industry," he said.

He said 35 per cent was good ratio as this would give Zambians an opportunity to derive maximum benefits from the mineral resources.

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