By Esther Chisola
Mines Minister Paul Kabuswe says Mopani transaction was very transparent and professionally done.
And Chief government spokesperson Cornelius Mweetwa said the government will respond to the catholic bishops letter once it studies the document in detail.
The Zambia Council of Catholic Bishops (ZCCB) wrote a letter to the government raising concerns among them the continued arrest and seizure of opposition properties.
The bishops also expressed concern at how the UPND is abusing the rule of law among other issues.
But speaking at a joined media briefing in Kalumbila, Mweetwa said the government would revert once it clearly studied the letter.
Mweetwa further urged all UPND members and supporters to desist from reacting to the letter stressing that it was addressed to the government and they would respond.
“In terms of the rule of law, our initial commitment in the opposition and in government is that we shall govern this country as a Christian nation working with the Church. The Church are all weather partners with government and where they raise issues of concern, we shall not be in a hurry to respond to them,” he said.
“We would like to internalise and be able to consult widely as to the ramifications of that pastoral letter, after which, the government will engage the Catholic Church as to the way forward in addressing those concerns that they have raised.”
And Mweetwa said the good policy under the UPND had resulted into the extension of the lifespan of mines.
“That as a result of stable policy regime in the mining sector, this has resulted into the extension of the lifespan of mines, such as Kansashi whose lifespan has now been extended to 2052-2053 and Lumwana. This is as a result of the good policy of the administration of President Hakainde Hichilema,” he said.
Mweetwa further disclosed that Zambia Revenue Authority (ZRA) had contributed 71 percent of its collection to the national budget.
“In terms of collections of taxes by Zambia Revenue Authority (ZRA), like many other years, the mining sector remains the backbone of Zambia’s economy. This year, ZRA has contributed 71 percent of its collection to the treasury or to the national budget,” said Mweetwa. “Out of that 71 percent, between 37-40 percent is revenue coming from one sector, the mining sector. So, that is the reason why we say the mining sector are the backbone of the economy.”
Reacting to assertions that Mopani deal was day light robbery and the transaction was shrouded in secrecy, Kabuswe said the record on how government arrived at Delta was there and would be shown to the nation.
“Delta was the vehicle that IRH has used for purposes of investing in Mopani. This is normal business practice. How can it be day light robbery when Delta after successfully biding for the Mopani transaction immediately released $4,000 million to pay Glenco? The debt that was crippling Mopani. And that’s how Glenco has left and Mopani was cleared,” he said.
“Apart from that, all the suppliers and contractors who were owed by Mopani have been paid including retirees at Kitwe City Council. The Mopani transaction was very transparent, professionally done.”
He said from the time Delta and Mopani went into an agreement, production had increased by 37 percent.
“Mopani has increased its productions by 37 percent for the past six months, from the time that Delta and Mopani went into an agreement. How can that be day light robbery, When they are ramping up production?” he said.
The minister said the government was proud to have picked Delta to work with Mopani.
“We are very proud that we were able to pick Delta to be able to work with ZCCM-IH in terms of running the affairs of Mopani,” he said.
“Mopani has brought back life to Kitwe, the life that you took away you as PF when you were running this country as an animal farm. So, Mopani deal, there is nothing like robbery. For us as government, we made the right decision and the results are for all to see.”
Kabuswe also announced that the gold that was produced at Kansashi Mine was sold to the Bank of Zambia (BoZ).
“I want to announce to the nation that the gold that comes from Kansanshi, actually, the gold door that is produced at Kansashi is sold to the Bank of Zambia. This must be made clear because there has been a lot of misinformation around this issue,” he said.
The minister said the 22 percent increment was as a result of the vision and policy environment put in place by the government.
“With respect to copper production, Kansashi mine last year, produced around 130,000 metric tons. This year, Kansashi mine is posed to increased production by 22 percent. Meaning that the policy environment and the vision has actually triggered that,” he said.
“When we spoke to Kansashi, they told us, they were very clear that because of what you brought as new dawn government, the policies that you put in place. Within one year, we have ramped up by 22”.
He said that would enable the mines to meet the 3 million tons copper target.
“In the mining sector, that is huge, that is a huge gap and as such, that is leading us to the 3 million tons of copper that we are talking about,” he said.
“So, the extensional project we visited is really a massive, massive project and they are going to spend in excess of $2 billion to just do that project. Really, the journey to 3 million tons is on course”.
The minister also disclosed that Barrick would have a 6 percent production increment.
“Today, we went to Barrick (Lumwana Mine). Again Barrick announced to us that since the coming of the new dawn government this year, they are ramping up production by 6 percent. That is a another increase there because of the policy environment,” he said.
“Apart from that, another project that was on ice was the super pit which they are doing now by investing in excess of $2 billion. With that, they are going to ramp up production to around 230-240 metric tons per year. This is Lumwana before or by 2028”.
Kabuswe said the three mines in North-Western province had the capability to give the country 810 metric tons per year.
“Trident is at 240,000 metric tons. Again, an enabling environment policy stability. When you look at these three mines, in North-Western province, we are also at 810 metric tons per year. Now, today. Our production figures are hovering between 6-700,000 metric tons,” he said.
“Mopani is also saying that by 2028, they will break the 210 metric tons barrier. Already when we add Mopani, we break the 1 million barrier. We add KCM, that’s already 1.3. Shaft 23.”
The minister said the country has the capacity to break the 2 million metric tons barrier.
“Just looking at all these mines, we will easily break the 2 million metric tons psychological barrier. 1 million for me is a no brainer, we are already there,” he said.
Kabuswe further disclosed that the mines in North-Western Province would also create jobs for the Zambian citizens.
“In Kansashi, by 2028, they expect to have an additional of 2500 jobs created and it will reach 9000 around those figures. At Lumwana, they expect to have additional 2500 jobs they will also reach around 8000,” said Kabuswe.
“For Lumwana, in terms of direct jobs, 99 percents are Zambians. In terms of management, there are 30 percent of expatriates and 70 percent Zambians. In terms of Kansashi, there are over 90 percent local in terms of direct jobs”.
Last week, Speaker or National Assembly Nellie Mutti directed Kabuswe to issue a ministerial statement to give an explanation why Mopani Coper Mines was sold to International Resource Holdings without the approval of Parliament.
Meanwhile, provincial minister Robert Lihefu thanked the President for sending the delegation to appreciate the development in North-Western province.
“The President is coming to the province to open the Kansenseli gold mine in Mwinilunga. He will later be commissioning the Kasanjiko hydro power. And on Monday, President Hichilema Hichilema will open the Kalengwa Copper Mine,” said Lihefu.
“We want as government to double the production of copper in the province.”
