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State to continue reviewing mining policies Business Report
Business Reporter
THE Government has said that it will continue to review policies to create a favourable investment climate in the mining sector for both local and foreign investors.
Speaking during the signing of the US$20 million contract for the new coal processing plant for Maamba Collieries, Mines and Minerals Development Minister Maxwell Mwale said the Government would continue supporting the development of the mining sector in Zambia.
The contract was signed between Maamba Collieries chief executive officer Mumba Kalunga and ELB Engineering Services chief executive Stephen Meijers.
ELB Engineering Services of South Africa were engaged to construct the coal processing plant, replacing the 40 year old plant that was commissioned in 1970.
Nava Bharat of Singapore has 65 per cent stake in Maamba Collieries with Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) holding 35 per cent on behalf of the Government.
“The Government will continue to support investment in the mining industry by creating an environment that encourages sustainability and diversity. The Government has demonstrated this support by reviewing policies to create a conducive environment for both local and foreign investors,” Mr Mwale said.
Maamba Collieries is Zambia’s largest coal mine but over the years, production had gone down mainly due to lack of sustainable investment and recapitalisation.
“Coal production continued at low levels over the past five years, which saw engagement of contract miners,” Mr Mwale said.
Speaking earlier, Nava Bharat chairperson Ashok Devineni said that since acquiring a stake in Maamba on December 18 last year, Nava Bharat has ensured that salaries for staff were paid on time.
Dr Meijers said the new coal processing plant would be using new technologies with little effluent discharges making it environmentally friendly.
ELB was serious about the issue of workers’ safety and would therefore ensure that the safety of miners in the coal plant was guaranteed.
Africa could only be developed by Africans themselves and therefore supported partnerships between various African companies.
“The development of Africa and southern Africa depends on infrastructure led by power and the issue of safety to us is non negotiable. We will be taking the issue of safety for the machinery and people as well as environment very seriously,” Dr Meijers said.
And Mr Kalunga said with the $20 million new coal processing plant, Maamba would be able to produce 30,000 tonnes of coal per month for the domestic market but should demand increase, the plant would be able to double its production.
“Our plant is set to produce 30,000 tonnes per month but in the event that demand increases, we will increase the production to 60,000 tonnes,” Mr Kalunga said.