The current challenges facing Zambia’s copper mining industry because of a global downturn and declining commodity prices are further fuelled by general increases in operating costs.
Escalating input costs, labour and various taxation measures, together with the rising energy deficit, have taken their toll. The Zambian mining industry is collaborating with industry stakeholders to find a long-term strategic solution to promote the growth of not only its mining industry but also its economy.
Although the outlook remains positive for copper demand to increase and underlying market conditions to support higher prices from 2017/18, which will bring in a new cycle of production and operations ramp-up, solutions need to be found for the short term.
Zambia Chamber of Mines (ZCM) president Nathan Chishimba recently called for a considered approach by government and industry to deliberate on the measures that need to be put in place to support high growth in the mining industry and create a diversified economy. There is a need for diversification and to move away from an over-reliance on a single commodity.
Risk and Opportunities“Working together, we have to create a high-growth, diversified economy that spreads risk and opportunities across the economy, creates more jobs and widens the tax base,” he said.
To address the challenges and promote growth in the country’s mining industry, the third edition of the Copperbelt Mining Trade Expo and Conference (CBM-TEC), which will run from May 12 to 13 at the Kitwe Showgrounds, will offer a premier networking platform for international and regional companies operating within the country’s mineral-rich Copperbelt region and the will add value to an industry looking for innovative solutions.
CBM-TEC is a professional attendance mining technical supplies and equipment trade expo for the Copperbelt region, hosted exclusively within the Copperbelt.
“We remain convinced that Zambia is an attractive mining destination. With the current collaboration and efforts to support the mining industry, and an understanding of the needs of investors and operators, the industry will recover in time,” says CBM-TEC event director Nicole Smith.
“CBM-TEC is well positioned to provide a platform to stimulate trade in the mining and industrial sectors in the Copperbelt region, and for decision-makers and professionals to use the trade show to network, exchange ideas, share information and develop partnerships.”
Industry statistics highlight the continued importance of the Copperbelt mining industry in Zambia, even though the market is currently depressed. Zambia is Africa’s second-largest copper producer, and the seventh-largest copper producer in the world. Copper is responsible for more than 70% of the country’s total exports, with mining accounting for 12% of gross domestic product and 10% of formal employment.
“Mining companies are fighting to preserve operations through cost cutting and optimisation initiatives,” says Smith, adding that, simultaneously, investment has to continue in exploration projects that will translate into viable mining operations in the future to ensure readiness for the upward turn of the copper price and commodity demand.
She highlights that CBM-TEC will provide a platform for government, industry and other stakeholders to discuss solutions to these issues.