Message Mer 27 Nov 2013 10:01

Emerald miners get ‘shot in the arm’

By JAMES KUNDA -
ZAMBIA is a country endowed with a spectrum of God-given mineral resources.
Most of these minerals are extracted in the Copperbelt Province which is the regional hub of mining activities in Zambia.
An emerging mineral industry in North-Western Province could, however, soon shift the balance of power of copper mining, as expansion projects spearheaded by First Quantum Minerals (FQM) take centre stage.
Aside from being among the world’s elite producers of copper, Zambia also produces low and high grade rough emeralds.
Gemfields – owned Kagem Mining, along with Grizzly and Miku are the three active emerald mines currently operational in Zambia.
Zambia produces about 20 per cent of the world’s emeralds, with Brazil and Colombia topping the charts as the world’s elite emerald producers and gemstone suppliers.
The country’s gemstones are much sought after due to their deep green colour which adds beauty to products such as bracelets and necklaces.
Government is already implementing policies and projects aimed at growing and adding value to the country’s gemstone industry.
The Government through the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) has released a grant of K50 million towards the development of 400 small-scale emerald miners whose mineral exploration licenses are dormant.
These funds will go towards addressing the various challenges that limit small-scale emerald miners from undertaking full-time gemstone production.
“Government through the ZCCM-IH has since secured K50 million to help revive the gemstone industry and programme is underway were miners with dormant exploration licences will be grouped into forms of corporatives and accordingly, challenges limiting their progress will be addressed.
“For instance, if the challenge is lack of drilling skills, Government will engage a geologist with experience in drilling to offer training to the miners,” said Mines, Energy and Water Development Minister Christopher Yaluma.
Mr Yaluma said through this process, the miners would also be sensitised on reasons why they should not sell their gemstones to illegal emerald buyers.
Government has been losing a lot of revenue through the illegal sell of emeralds to canning people on the street and introducing this programme is one way to curb this trend.
The development has cheered the Emerald and Semi Precious Stones Mining Association of Zambia (ESMAZ), with chairperson Victor Kalesha saying the grant availed by the Government to revive dormant gemstone mining licenses will awaken the industry and create jobs.
Mr Kalesha said there were a lot of potential gemstone mines in the country that are lying idle due to lack of equipment and working capital.
“We would like to congratulate the Government for securing K50 million for small scale miners”.
“This will wake up the industry that has potential to diversify the economy, earn the nation more income and create the employment opportunities which the Government is pursuing with vigour,” Mr Kalesha said.
The association is already preparing its members psychologically to treat the grant from Government as business opportunity other than a charitable gesture.
“Our goal as ESMAZ is to make sure that our members realise their dreams and the Government increases revenue collection from the emerald Sector”.
“We have not been contributing to the economy because we are not producing and when disbursing these funds, Government should not entertain hijackers who are not even experienced in emerald mining,” Mr Kalesha said.
Standard Gemstone Company Limited (SGCL), a firm revamped by the Government to cut and process gemstones, recently commenced operations in Ndola with an initial capital injection of K2 million.
The firm was re-established through the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) and operations commenced with a workforce of 25 people who are graduates from the Gemstone Processing and Lapidary Training Centre (GPLTC) in Ndola.
All the employees at the firm are trained with skills in gemstone cutting and polishing.
“In setting up this company, Government has put in place a mechanism that is intended for all players in the gemstone sector to participate and contribute to its growth,” Mines, Energy and Water Development Deputy Minister Richard Musukwa says.
He said with the firm operating effectively, Zambia would have a basis for attracting investors and the international market to buy gemstones from the country.
Mr Musukwa added that the Government wanted more people to be trained and acquire skills to carry out duties in gemstone processing.
With SGCL now up and running, contribution towards the value-addition chain of emeralds in Zambia is assured and this will stimulate wealth and employment creation for people in the gemstone sector.
Early this year, President Michael Sata directed that all emeralds mined locally be auctioned within Zambia for continued value addition to the country’s mineral resource and maximised benefits for the Zambian people.
Presenting the 2014 National Budget to Parliament, Finance Minister Alexander Chikwanda said Government will continue to encourage this initiative as it will also improve revenue collection from the gemstone sub-sector.
Government has also pledged to set up precious-stone collection points to expose small-scale gemstone miners and avail them an opportunity to have their products sold to international buyers.
The move is part of Government plans to reorganise the local gemstones sector in which it was losing millions of Kwacha in revenue through unsanctioned auctions previously.
Permanent Secretary in the Ministry of Mines Victor Mutambo said the decision would ensure small-scale miners of precious stones benefit from their products for which they were often exploited.
“We have small-scale emerald miners from places such as Mapatizya, from where it is difficult to transport gemstones to an auction being held in Lusaka.
“But with the setting up of collection points, transportation will be made easier and miners can bring their products during auctions in Lusaka and money will be given to them instantly,” he said.
Mr Kalesha however, suggests that Government should allow the auctioning of emeralds abroad to help attract more international buyers and enhance competition with other gemstone producing countries.
Mr Kalesha says emerald auctions should be extended abroad to attract international buyers who did not often make the trip to Zambia when such sales were conducted.
“Government’s policy on local emerald auctions is supported but these sales should also be extended internationally because in this industry, there is competition coming our way from other producers like Brazil and Colombia.
“So, if we do not go out and explore the foreign market, it will be difficult to attract buyers and our emeralds will not be competitive enough when compared to those from other producers,” he said.
But Government maintains that it will not allow locally-produced emeralds to be auctioned abroad because all proceeds from the country’s mineral wealth should be invested locally to benefit the people of Zambia.
Dr Mutambo said the Government policy remains that auctioning of emeralds would be done locally for the benefit of Zambians.
“Government policy on the auction of emeralds still stands and we have talked to gemstone mines like Kagem,” he said.
So far, Kagem Mining has held three successful emerald auctions in Zambia, despite the firm still being in talks with the Government over possible foreign auctions.
President Michael Sata has expressed satisfaction at the holding of these auctions saying “additional spillover effects to other sectors of the economy will also be enhanced as international buyers, who come and stay in the hotels, will end up visiting other tourist attractions as well as having an interest in investment opportunities in various sectors of the economy.
The resolve by Government to take emerald mining in Zambia to another level is a welcome development considering that the country has solely relied on copper as the cash mineral for over 49 years.