Proper Resolutions Needed for Teething Issues in Zambia’s Mining Sector
With the mining sector gaining momentum, it is crucial that we address the challenges strategically to alleviate production and administrative pressures faced by the industry despite its promising market potential.
For a considerable period, the mining sector in Zambia has grappled with policy inconsistencies. Currently, at the micro-level, investors are encountering challenges related to the quality of investment packages they engaged in.
While the copper market experiences fluctuations due to external shocks, it maintains a strong demand, particularly driven by China’s need for the red metal. Moreover, the current market favors clean energy, aligning with the pursuit of a low-carbon economy.
It is evident that the mining sector in Zambia has operated without sufficient regulatory oversight. Establishing a mining commission body could help alleviate some long-standing challenges, such as idle or speculative holding of mining licenses and the implementation of a mineral diversity plan.
As a nation, we must take swift action to add value to our minerals locally to avoid exporting copper ores along with other valuable minerals that often remain unaccounted for during tax processes at the Zambia Revenue Authority (ZRA).
Addressing these issues will be instrumental in boosting the mining sector’s contribution to the national economy and fostering sustainable growth. Strategic solutions and regulatory reforms are essential to unlock the full potential of Zambia’s mining industry and ensure responsible and beneficial utilization of its valuable resources.
