Mining firms to list on LuSE

[bingogo]

By NELLA MUKALENGE
GOVERNMENT plans to put in place a policy that will compel mining firms to list on the Lusaka Stock Exchange (LuSE) to enhance citizens’ participation in the country’s mineral resources, Ministry of Mines and Natural Resources permanent secretary Victor Mutambo has said.
Dr Mutambo said the extent to which natural resources can contribute to the development of the nation is dependent on the levels of Zambians’ participation in the mining sector.
He said the ministry is planning to negotiate with mining companies so that they consider listing their firms on LuSE, adding that it will compel other companies that are not willing to do so.
Dr Mutambo said this when he appeared before the parliamentary committee of economic affairs at parliament building in Lusaka recently.
“Other mining companies have shown interest to list on LuSE and we are ready to negotiate with others as well. What I think should be done is to start forcing others to do so in order to improve on citizens’ participation in the sector,” he said.
He said few Zambians hold large-scale mining licences with the majority owned by foreigners, which reflects that Zambia’s participation in the mining sector is minimal.
Last week, the Zambia Association of Chambers of Commerce and Industry (ZACCI) called on Government to compel large companies in key sectors to make it mandatory to list shares on the stock market.
ZACCI president Geoffrey Sakulanda said the listing of large firms will empower both the citizens and the companies by raising additional capital from the stock market.
Dr Mutambo also said that Zambians have only managed to actively participate in small-scale mining with only a few mines engaged in production.
He said though many small-scale mining licences are held by Zambians, participation in the sector has only remained at merely holding of licences and not further to trading and supplying.
“Few Zambians hold large-scale mining rights. As at December 2011, about 90 percent of the 748 small-scale mining licences were held by Zambians while only two out of the 29 large-scale mining licences were held by Zambians,” he said.
He said Government has embarked on a programme aimed at improving the performance of small-scale mining which will include assisting miners generate geological information for use in their planning and find a market for their products.
On Zambians’ participation in the forestry sector, Dr Mutambo said it is low as most citizens are only engaged in low investment ventures such as charcoal production and not timber processing.
“The most lucrative activity in the forestry sector is the production of timber. Few Zambians are able to engage in timber processing at a large scale due to lack of favourable loan facilities,” he said.









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