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The Role of Government
The Government has adopted a pragmatic mineral policy which is designed
to enhance investment in the mining industry and to ensure the
development of a self-sustaining minerals-based industry.
The
privatization of many state-owned companies and especially the copper
mining industry, formally managed under the parastatal umbrella of
Zambia consolidated Copper Mines Ltd (ZCCM), is a clear demonstration of
this intent.
Enactment of this policy is being promoted by the Ministry
of Mines and Minerals Development through the technical support
available from its three constituent departments - Geological Survey,
Mines Development and Mines Safety.
Mining Policy
Key objectives of the government's Mining
Policy:
- To make the private sector the
principle producer and exporter of mineral products through putting
in place a private sector initiative in the development of new mines
in order to increase and diversify mineral and mineral based
products and exports. This will maximize long term economic benefits
to the country.
- To promote the development of the small
scale mining industry which has the potential to significantly
contribute to the economy.
- To promote the development of gemstone
mining and facilitate liberalised marketing arrangements in order to
realise the industry's potential to contribute to the development of
the economy.
- To promote the exploration and
exploitation of industrial minerals and to encourage the
establishment of a ferrous industry.
- To reduce the danger of ecological
damage arising from mining operations as well as damage to the
health of workers and inhabitants of the neighborhood through water,
air and land.
- To promote the local processing of
mineral raw materials into finished products for added value.
- To promote private participation
the Government of Zambia has developed a new mining policy which
brought in a Mines and Minerals Act in 1995. The new policy aims to
encourage foreign investment in exploration and new large-scale
developments, and to encourage private investment in medium and
small-scale mining. This is achieved by enshrining in the
legislation the following basic assurances that the foreign investor
expects:
- Secure
title to mining rights
- Stability
of the fiscal regime
- Foreign
exchange retention
- Right
to market mine products
- Right
to assign (right to trade the mining right)
- Stability
in environmental management
- International
arbitration
- Freedom
of commercial operation
The
Government policy is not to participate in exploration or other
mining activities or any shareholding other than regulatory and
promotional role. Minerals in the ground are vested in the President
on behalf of the state. The right to explore or produce minerals is authorized
by a license granted under the Mines and Minerals Act.
Besides
a reconnaissance permit which is issued for a maximum of three
months and is non-renewable (fees range from 4000 to 8000ZK) there
are three categories of mining investments which have been
identified in the new mining policy.
Geological Survey Dept
The primary roles of the Geological
Survey Dept are to provide geological and geochemical data on a country
wide basis, to act as a national depository for all information relating
to geology of Zambia, and to provide support and advisory services to
the public. Contributing to these activities are a number of important
sections which provide a range of investigative services:
- chemical laboratory for analysis of
samples by classical methods, atomic absorption spectrophotomotry
and ultra-violet spectrophotometry.
- geophysics section with capabilities in
gravity, magnetic and restivity surveys and also borehole
logging.
- mineral dressing and metallurgical
lab, determination of gold by fire assay, beneficiation test work,
equipped with crushing and pulverizing facilities, James table,
magnetic and heavy media separators and flotation cells
- gemmological unit, identification,
authentication and valuation of all types of gemstones.
- mineralogy and petrology labs, preparation
of thin sections of rocks, minerals and ores for
petrogenic study, mineral identification by x-ray diffractometry,
x-ray fluorescence analysis.
In its role as the national depository
for geological information the Geological Survey has accumulated a
wealth of maps, publications, reports and data generated by the survey
staff and also derived from external sources including exploration
reports and international journals.
Mines Development Department
Key responsibilities for the Mines
Development Department are the issuance of all prospecting, retention
and mining licenses, together with the monitoring of mining operations
to ensure that development is in line with approved programme's of
operations and in accordance with the Mines and Minerals Act. The
Department also issues Gemstones Sales Certificates and undertakes
reconnaissance surveys, demarcation of plots, placement of beacons and
mine pit surveys.
Mines Safety Department
The Departments mission statement is:
To formulate, monitor and maintain
legislation regarding the safe and sustainable exploration and
exploitation of mineral resources and the safe manufacture,
transportation, use, storage, destruction, exportation and importation of
civil explosives for the maximum benefit for the people of Zambia.
The department is divided into four
technical sections - Mining, Explosives, Machinery and Environment -
which variously enforce the relevant legislative and statutory
instruments, formulate new legislation and regulations, evaluate all
aspects of safety in mining operations, offer technical advice and
training and offer exemptions from the relevant regulations where
appropriate.
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