Economics Association of Zambia President Lubinda Haabazoka has proposed that government takes over the running of the mining industry.
Dr Haabazoka who is also Head of the UNZA Graduate Business School said Zambia will only benefit from the mining sector when it starts running the mines.
The Zambian government is spending $700m in VAT refunds to the mines annually and $240m in electricity subsidies to the mines including $60m in fuel subsidies to the mines annually.
“Total $1billion. Yes $1bn that if we withheld, we could repay all our Eurobonds without refinancing. Now can you ask the mines how much platinum and other rare minerals they mined last year? Where are the proceeds? Ndola refinery under ZCCM was responsible for extracting such,” Dr Haabazoka noted.
“The mines last year produced over 800 thousand tonnes of copper. The average price of copper last year was $6000. In total, they received not less than $4.8bn. Now these are official figures. Now how strong was our currency going to be if we kept even $2bn of that here?”
He added, “Chile, the largest copper producer learnt management of its mining companies from Zambia. Their company Codelco whose CEO I met sometime back was formed under ZCCM model. Foreign investors in Chile were given greenfields and government there cannot be cheated because they also own mines. Chile today has a copper stabilization fund that the country uses during downward economic slumps. Chile today is developing very fast and after copying from us do not know any inflation problems.”
Dr Haabazoka said Zambia needs to act now.
“We need to act as a country. For those saying we can move in to control the negative trends in the mines, what is your alternative proposal?” he asked.
This guy might as well give up EAZ position and become economics chairperson for the PF
You right
I agree with this man… the truth always catches attention of other learned individuals!
You speak kandidly in this reality. The issue is, are they listening? Our leaders lack self belief and think anything foreign is better.
It is the right time to do it…
#nationalisethemines
I agree Doc Haabazoka
The Government should have some sort of stake in the mines to stop these so-called investors pilfering the resources while they are enjoying wholesome ownership of our mines. KK’s model of government owning a percentage was a good approach then. In this modern time with all the educated people a model can be devised/agreed to stop this daylight robbery of our resources by the investors. And yes time to act is now!
This would be great if we had a competent and honest leadership. But with a corrupt, incompetent, thieving bunch like PF, the mines would be ground to a halt in a few months. Mining is not a simple business. It require very high levels of competence, planning, investment, and strategy – all things that are completely anti-thetical to the PF way of thinking.
Let’s get thinkers into government, then we can make it work. PF would running the mines would be like monkeys running a banana plantation, or rats running a groundnut processing plant
Russian Doctorate are sub-standard.
If PF have failed to operate simple companies like ZESCO, ZR, Tazara, what more mines. Antonio Mwanza is on Zesco payroll.
We’ve been down this road before with ZCCM. Govt was pumping in $1million every day to keep it afloat. There was over employment, abuse of resources, diesel theft, managers pulling bull-dozers from the mine to go till their personal farms. Francis Kaunda built his mansion using pan bricks imported from Australia. He has a serious collection of vintage cars.
@Journeyman: This agenda is not political. If anything, opposition should rally behind such ideas and make them work. You see, that is exactly how those who want to control our resources want us to think. Fight each other while they go unchecked. People like you have been made to think exactly like they want you to. The Chinese got rid of those mental blocks and forged ahead. Sad that today, even with more educated Africans, you can’t see beyond a certain level, my colonised friend.
Zambian Citizen, I am not speaking from a political pees perspective, but a PRACTICAL one. I have w worked in mining so I know what I am talking about.
Mining requires a very high level of financial discipline, technical competence and precision, spot on long term planning. Mining gobbles millions of dollars in production and maintenance costs. The problem is that most people just look at how much the mines are making from selling minerals. They don’t see how much THEY SPEND. It’s very delicate. It needs level heads, and well thought out strategy to run a mine profitably. You can’t just wake up and say “Am going to run a mine”.
As far as I can see, there is no competence, no financial discipline, no strategic thinking in PF. All these are present in the Chinese you are sighting…
Just have a look at appointments at IDC.. The CEO is not qualified in any way to run IDC. But because he is a PF cadre he gets the job. Mind, I know the guy so am not speculating. The clown who was just fired from heading zampost (we understand) is Sunday Chanda’s relative. Again political appointment.
You see, the problem is that appointments to major, strategic positions is not based on competence. It’s based on political affiliation and boot licking. This is what makes our parastatals non viable. Do you really think that with this kind of culture our government can run the mines? Come on bro. Let’s be serious. This is the same reason why the land reform program flopped in sin. You just grab land from very competent white farmers and give it to incompetent cadres. Instead of first…
Shameless, I agree with you, this guy has lost it!!! It is this king of careless talk that will further erode investor confidence and result in the Kwacha hitting K20/$ before we realise it. Why not focus on our own shortcomings and careless borrowing. Clueless!!!
Why did Zambia sell most of its Parastatals? We failed to manage them profitably. What has now change that will make us run the mines profitably. It’s like watching a football game, it looks simple from outside but when they put you in the game it’s a different story.
Yes you can talk about about how much the investors are making, I wish you could also share the figures of how much they are investing.
Not this fat young boy again…he thinks numbers add up with PF as reckless as they are, PF removed subsidies for all except the mines to fund infrastructure but what did they do they misappropriated the funds on grossly inflated projects and started borrowing. You can not withhold VAT every Revenue Authority repays…how much is ZRA collecting in tax? Its easier to collect but very hard to repay.
This fat boy should just ask Lazy for a job at State House…but Lazy doesn’t like educated foools he prefers Kaponyas like Kaizer and Sikazwe around him.
POSTERITY HAS JUST WOKE UP TO CONTINUOUSLY CRITIZE DOUBLE H FOR THE SALE OF OUR NATIONAL ASSETS. I HAVE WARNED YOU NIGGAZ THAT DON’T DEMONISE TONGAS EXCEPT FOR THOSE IN THE GROUPING CALLED UPNDEAD BECAUSE THEIR LEADER IS A PRODUCT OF AN UNFORTUNATE TRIBAL REMARKS AND AT THE CORE OF OUR MESS.
“””””””””””””””””””””””””””””””””””””””””””””””””””
In the thick of the sale of our national assets is double h and Nawakwi. If you hear the later’s remarks on the pressure she/they felt to be arm-twisted into the sale, you will laugh at the naivety of the perceived lack of alternatives. Haabazoka, you’re right and you really sound like Socialist Party leader M’membe but no so fast. You have to understand the dynamics and folks behind the…
..sale. Right now the IMF and the World should be cursing you saying who is this thick nigga talking with authority? How I wish you were this educated and vocal back then you. You would have put a halt to the nonsense and mess double h put and the MMD cliques put us through. You wonder why the Zambia /China is under fire and the crooks behind. Repossesing the Mines is an “almost” uphill battle to say the least. Zambia risks sliding back to the 90s with the waste sanctions from the impending from the West through IMF and World bank. The very crooks who swindled us of our assets. Good luck!!!
Thorn in the flesh – It just shows how immature you are by using the N word…anyay most of you cadres are childish blind followers on a leash.
Habazoka has a good point – nationalise the mines by retaining 50% shares in all mines, and split all profits, taxes, royalties at 50/50, e.g. in Bostwana.
Ke Nako – Botswana owned the mines before the negotiated a win-win deal with DeBeers…who had no choice as they threatened to flood the market with cheap diamonds….you have sold the mines for a song with agreements for them not to full price of energy…do you honestly think an utterly daft corrupt lazy man Lungu can negotiate anything? Have you heard him speaking…
@1.13 Gay Jay
You are afraid to use N word a.k.a Nigga in the West where it hurts so badly and invokes unprintable amounts of memories . Get over it my nigga.
Meanwhile I’m sure it’s not the word you are worried about. It is something else.
I wanna hear Dr. Haabazoka’s roadmap of repossessing our mines without hurting the sanction packed West. Reposessing the mines is worse than Mugabe’s land grab I believe. Just remember that.
Thorn in the flesh – You have no understanding of the word or where it originated from hence the reason you spew it like “Little” Wayne.
I totally agree with this proposal. We can do it. We have the brains so many engineers and other fields all fields.
If only we can be patriotic like other countries who do a lot for the development of their countries.
We would have to ensure professionalism and avoid corrucorruption
If only corruption could be dealt with sternly by the law like serious jail term or fines etc
It is very simple for those arguing that government can run copper mines …. Please just get a new site there is still a lot of copper on the NW province and let us see if government can establish and run a mine. If you do it successfully then fantastic u can start buying back equity in some of your former mines. Plus please the most profitable mines such as Lumwana were started from the ground up by the investors so it is not necessarily all mines the government may take over even if this Habazokas proposal is followed …unless u want to trigger investor flight from anything to do with Zambia
Dr Haabazoka is very wize. He knows what he is talking about. If Nigeria and Botswana did it, Zambia can “did” it too.
I think there is a very short-term outlook on most aspects by PF which will cost the country dearly in the long term. Zambia will be plundered and polluted and R&ped. There is no long term vision on the part of our leaders. What they need to realize is that the resources are not inexhaustible. Kick them out to save the future of our country!
Not with this Government No No No No. If anything they just want to give the mines to Chinese.
Thats the way to go
It is the way to go. Tat is why under the UNIP government so much was achieved until MMD started receiving funding from the racist South Africa just to kick out KK.
Habasonde has finally woken up to the truth
Any right thinking person must support this move. Our currency is weak because investors can easily externalize funds from Zambia. Mines are owned by foreign countries and the proceeds from the mines are externalized, so how do you grow an economy in such situations? If the government owned even 50% shares in all mining companies Zambia’s economy cannot be where it is right now. At a later stage we can then start value addition to the raw copper cathodes which we are currently selling. But first lets nationalize the mines.
#Haabazokaisright
Dream on …you can not record a profit in a lucrative industry like telecoms and you think you can run a mine with these reckless corrupt thieves in govt!!
Really? Strange proposal,,,, kaizer and those criminals you think will spare those mines if there are in lungu’s hands
Echio ndelilia!
With the “mwibala” mentality, the expected benefits of nationalisation will be equally elusive.
@Ndobo, I am sure those guys you mentioned are busy asking Haabazoka “when are you handing over mines”. They think Haabazoka owns those mines.
Such are strong sentiments our country needs. When we have more people thinking like this, this country will develop. You are right, Mr. Habazooka.
You have abused and squandered all reserves and loans on overpriced poor infrastructure …today you state that its a good idea coming from a Russian educated PHD Holder…you couldn’t develop an economy with good credit rating MMD left you think you can develop by going back to UNIP principles of the 60s….not with deceitful thugs like Lazy Lungu who just keep borrowing and borrowing.
That’s the way to go, people lets not criticize everything, some things its better to try than never.
Keep soothing yourselves ..now you have eaten everything including the table!!
This guy has made my day,we need more of that line of thinking!
I have always said this. Apart from the new mines Kalumbila and Lumwana these guys running KCM and Mopani have not brought in any investment either in skills or machinery. They simply inherited what Zccm had purchased. Let government compete with other mine owners. They tell that government has no business running business but they do that in their countries.
Again am thinking i hope you are not trying to get the mines from Europeans and giving them to the chinese to recover your debts, hmmmmm i smell something fish on the second thoughts
My question is: how is copper sold? because ideally, the buyers of copper are suppose to come here in Zambia,exchange their foreign currencies with our Kwacha to buy our copper which must be priced in Kwacha and then the mine owners, after paying taxes and other costs (in Kwacha),they can now externalise their profits(in Kwacha) by buying any foreign currencies of their choice just like any other Zambian from banks and bureaux.This is what stregthens any productive economy(currency).
And how do you bring in the forex for your foreign miners to externalise?
Try to understand the concept,that’s why I asked….how is the copper sold? I expected an answer from you. As regards your question,in a free market economy ,when the buyers of copper come here in Zambia to buy copper, prices of copper ideally will be in Kwacha and they(buyers) wont come with Kwacha but foreign currencies and this is what brings about FOREX.
You ask a question and then you go ahead and give an answer…why didn’t you just stop/pause with a question mark…instead of going ahead in thinking selling copper is like buying fish from Kafue.
This nigga Gay jay is sick. Can’t you have a normal conversation?
@ Jay Jay……Far from your conclusion that I thought selling copper is like buying fish from Kafue,what I was trying to put across is that there was hardly any correlation between his(Ba Robbie) question and my comment.However,I saw it fit to explain FOREX to him.
Zambians cant manage to run the mines. Let a white man continue to run this delicate industry. Its like rocket science study to ask the school of mines at UNZA to manage Barrick Lumwana Mine they can put the mine in a total mess increasing the production costs.
Please Doc Habaazoka don’t even dream about such fantasies they are way beyond the Zambian scope.
If the Chinese, South Americans thought like you, those regions would be in poverty. But they told themselves they can do it and that’s why they are where they are. How come Nigerians are running intercontinental banks and cement companies?? You, my friend, are a slave. Your mind is colonised.
You may recall that our mines were sold for pennies on the dollar because they were not turning a profit. They were offloaded into skilled hands and the tide of the future swung in their favor.
@10.1 The problem with our people is that they look at everything from a political point of bias. Anything pro PF is bad as far as Upnd members are concerned and anything coming from Upnd is poison in the PF sympathizers eyes. The mines used to run very efficiently when GRZ owned 51% in both RCM and NCCM. Top jobs were held by expatriates while Zambians held jobs such as Manager administration , underground manager, met. Manager etc. Although the Chairmen of these companies were Zambian like Mr Francis Kaunda and Mr David Phiri, the board were composed mainly of Representatives of the two companies i.e. RST and AAC. They had firm control on policy and operations. Hell broke loose after we merged RCM and NCCM and completely nationalized the new company called ZCCM
10.1 Zambian Citizen
Great piece
Imagine you have chaps like him in ministerial positions. Many where thinking like him when the decided to privatize our Mines. Inferiority complex at play, nothing else.
This is the way forward
I also find it strange why should we fail to run mines.What went wrong in 1990 was abuse of authority by management. If Zambia had good systems in place mines can be run by Zambians.There is no need to have foreigners runing mines.We went to the same schools and why should we fail?Hell noooo we can do it bane.Zambia will never develop if foreigners run everything.We need to encourage Zambians to own mines period if we don’t want goverment to run them.This Russian friend of ours Habazooka is right otherwise we gonna team up russsian graduates and run this country.Why should be allow foreigners to do everything?Are we so dull?come on we used to be among the best students in europe.Chinese always used to copy from us n why should they run mines better than us who helped chinese pass…
The hard thinking Russian trained Economist.It is true, Government needs to own some mines along side private ones and not nationalizing the private owned. Chile is the best model for us. Where we don’t have capacity foreigners can assist to run and manage them with the hope of skills transfer. The forex raised from them will be 100% retained in Zambia and then our local currency will be supported as such.
@13 Mutangelo, THIS SHOULD BE THE MODEL and SHOULD HAVE STARTED WITH KCM and LUANSHYA MINES WHEN ANGLO PULLED OUT OF KCM AND BANANI FAILED TO RUN LUANSHYA MINE!! Even now we have an opportunity to push out KCM but these corrupt chaps are busy negotiating bribes with them instead of taking over the mine run it or find a better Joint venture partner for us to start keeping some of the forex and profits in Zambia!! THE MAIN PROBLEM WE HAVE IN ZAMBIA IS ROTTEN LEADERSHIP IN THE RULING AND OPPOSITION BECAUSE NON OF THEM IS PATRIOTIC, THEY ARE THERE FOR THEIR OWN POCKETS, ESPECIALLY THE LATTER WHO ARE ALREADY FUNDED BY MINING COMPANIES!!
There is clear and fresh evidence of how we (Zambians) ran the mines down under Zambianisation/zccm.
Government can’t run business, period. Almost all parastatals are technically insolvent.
Unfortunately Mining is capital-intensive and even operating costs can be huge. Mining requires lots of forward thinking (which is lacking in many parastatals).
Dr Habazoka, your school of business is not going to attract high calibre students if that is the level of thinking you are imparting in your students. You might as well start/join the faculty of politics.
I think you have a big problem in understanding the times. Let me try to briefly run you through a few points.
Firstly, the so called Zambians who ran the mines down in the past are not here anymore(literally). There level of education and enlightenment is not the same as we are now(excluding you of-course).
Secondly, Dr. Habazooka, others and I truly believe in our competences and are convinced beyond reasonable doubt that we can succeed in running the mines profitably as a nation.
Thirdly, there is no institution in any country that has capacity to source and obtain capital than the government of that country. So please, to avoid being ripped apart, try to first of all take an introspection and gauge your arguments against ours.
Believe in us (patriots) as its obvious you don’t…
That is the way to go especially on KCM run mines because nothing positive will come out those mines led by greed Indians!!KCM is the worst and if we are to benefit as a country,lets grab back our mines.
FTJ Chiluba and HH made a very big mistake by privatizing Govnt owned firms such as mines!!
Please President Edgar Lungu do what Dr Habaazoka is telling us above.Maybe for now lets leave out mines led by whites such as Mopani,Lumwana but grab KCM and Luanshya mines from useless indians and chinese!!Kainde and his evil team caused this mess for mother Zambia in the 90s thats why he will never be voted into office by majority Zambians!!
Spasiba!
Mr Habazoka you are right . And the motion should be tabled in Parliament for debate and eventual passed into law if necessary that ‘Zambian government on behalf of the people Zambia shall be the Majority shareholder in any mining venture conducted in the Republic of Zambia’.
We cannot be living on Donor credits when we have resources that just need prudent management .
Some engineer thinks to the contrary and we understand this laziness/cowardice/incompetence or otherwise because today we cannot even make matchsticks, needles etc because of lazy engineers who have chosen not to apply themselves.
Oil was once controlled by a click known powerful foreign multinational companies known as ‘ the Seven Sisters’ . The Arabs never benefited from their oil until they took over their…
Its strange to read some of the comments above!! How can you doubt the competence of Zambians and insist that whites or whoever should continue running the mines(milking Zambia of its resources). Anyone who does not agree with Dr. Habazooka should stay away and keep their inferiority complex away from platforms such as this one.
Its pathetic to call inferior minded chaps fellow Zambians.
Anyway, its time we took over and retained our position as a prosperous nation and develop this nation on our own.
Doc you are very much correct.. The other way is to run a model mine that will give us the ideas of how the mines are running.. Not necessarily to take over all the entire mines…
@19 Newcomer, and in support, I repeat my comments to 13.1:THIS SHOULD BE THE MODEL and SHOULD HAVE STARTED WITH KCM and LUANSHYA MINES WHEN ANGLO PULLED OUT OF KCM AND BANANI FAILED TO RUN LUANSHYA MINE!! Even now we have an opportunity to push out KCM but these corrupt chaps are busy negotiating bribes with them instead of taking over the mine run it or find a better Joint venture partner for us to start keeping some of the forex and profits in Zambia!! THE MAIN PROBLEM WE HAVE IN ZAMBIA IS ROTTEN LEADERSHIP IN THE RULING AND OPPOSITION BECAUSE NON OF THEM IS PATRIOTIC, THEY ARE THERE FOR THEIR OWN POCKETS, ESPECIALLY THE LATTER WHO ARE ALREADY FUNDED BY MINING COMPANIES!!
As long as ECL remains president nothing will change. Remove him snd that cheap propaganda championed by chandas
Pf needs new leadership
UPND needs a new leadership! Hazaluza Hagain to the hardworking President!
I Agree! But we need to employ proper managers even if it means expatriates.
These who currently manage our current parastatles cant manage the mines.
They are incompetent and thieves. Look at Zampost.. Zamtel.
Once the issue of management is resolved, lets proceed and get our mines back!
This pf Grz to run mines ??? That is too much hard work for pf …….That’s like asking a cow to give birth to a baby elephant …. PF belive and think all hard work must be done by the private sector mainly foringners…..
Name any industrial manufacture or factory created by GRZ ?? None , nothing, zero, nada….
First, you cannot compare yourself to Chile. Capital structure and control of mining systems very different. Chile does not only export copper; it also has capacity to process it. The value chain is Chilean and this developed over many years. Zambia nationalised the mines late 1960s and fully tumbled never to recover in 1973. It was then clear who controlled the global copper market system. by 1995, e cost of running the mines was US$2 million per day! Yes, per day. The world system made it extremely hard for Zambia to own its copper mining system. This is not a simple thing colleagues. If you want to lose even the little royalties from copper, go the route of Haabazaoka. You are better off closing off mining activities in this country than take them over. You are gone. This is not…
It’s like when there is a problem to be solved you you advise someone not to wake up from sleep cos by your thinking problem is too big…what a fellow….
JJP, you need to very soon get rid of your phobia for self determination. In these times, you can’t continue on the path of slavery mentality.
London can keep its market, we will trade directly with those willing to buy our products.
If it requires that Zambia puts up whatever value addition chains, so be it. What we want is to benefit the Zambians…period!!!!
Like someone has noticed above, you do not have a solution to our problems, but would rather tell us to continue sleeping because in your small ill developed mind, the problem is insurmountable!.
Please, give us space to push for this agenda. Zambian minerals for Zambians…step aside you and your minion white supremacist.
Unfortunately JJP has a valid point. Haabazoka is an economist and a technocrat and has possed a very serious and challenging question. He has also gone a step further invoking your thought pattern by way of piercing your hearts on this very important and thought excruciating subject. It’s like a question that goes “Zambians are you ready to suffer the consequences of Mines grabbing? More less the same question FTJ asked. Whites will definitely hit back.
This is not joking matter. It is not casting doubt on our own competencies. Its a global system that even MEMACO failed to penetrate from the London offices.
@24 JJP, Don’t you think TIMES HAVE CHANGED?? I am NOT for full nationalization but PARTIAL, WHERE SOME MINES ARE RUN BY INTERNATIONAL INVESTORS, OTHERS IN JOINT VENTURE and 1 or 2 WHOLLY OWNED BY GRZ!! Certainly in 60s,70s and 80s, countries like CHINA, INDIA,BRAZIL, TURKEY and even S.KOREA and to some extent JAPAN were FAR FROM BEING POWERS THEY ARE NOW!! BUT NOW MOST OF THESE ARE EMERGING POWERS AND ARE BIG CONSUMERS OF COPPER, would they refuse to buy copper directly from Zambia through our own “MEMACO”?? I think we should NOT fear to look for ALTERNATIVES but we should ALWAYS BE CAREFUL and STRATEGIC!!
We have other economists, what are is their thinking?I am not an economist,but if there in mismanagement of resources and people who are in-charge are not expert ,the mine will be insolvent.The mentality of reaping where you didn’t show in bringing this country down.Every one wants to be rich.Someone,who is just two years in employees on a small salary can have millions.They don’t have another income.When you are overseas,you have to work hard for your money.You get paid what you work for.That is the difference.
Meant in employment
nationalization of the mines is key at this stage….we can get the old mines back….copper is ours,even the copper money should be ours too…….
It will cost us a lot to grab these mine the way Kaunda did, the best move is to negotiate a better deal on percentage share as the late Mwansa Kapwepwe advised KK and gave him a Bemba proverb [ Tukalaingilamo pano pano ngo bukalabwambwa tukafike na 50-50% share. Other alternative lets start with this new up coming mine in LUANO DISTRICT in Central Province I hear it has a lot of minerals and highest grade of gold.
It’s all about governance. Daron Acemoglu and James Robinson wrote a brilliant book “Why Nations Fail”. Read that and understand why we are stuck in poverty. Regardless of region on earth, those with a certain governance system are EXACTLY the same in their prosperity or poverty… it is not rocket science. Add “Dead Aid” by our very own Dambisa Moyo for extra insight…
We have been there before and mismanaged the mines to such an extent that we forced by our own failures to give them away for nothing. No politics please. I don’t know what Mr. Habazoka has been smoking, but it is certainly confusing him, to say the least. There was a time I thought he spoke sense, but now???
It makes me happy to see us agreeing on an issue like this one regardless of political affiliation. Even those not agreeing are doing so with civility. This is how it should be, put your point across without pouring insults on others
Much as the idea is good but it is practically impossible under current situation.There is too much corruption and pilferage of government assets with impunity.Nationalization of assets will result in rampant corruption in the absence of proper security measures.I prefer introduction of Leadership Code for all leaders to follow.Those found wanting should be caged and imprisoned.The current environment is prone to corrupt activities and is a recipe for stripping of national assets.UNIP was able to run a viable nationalization programme because it laid down guidelines for leaders to acquire with.Corruption was not entertained in UNIP regime.Otherwise,nationalization is good but it needs leadership which is above self aggrandizement.
The idea sounds good but let us sober up for a moment. The calibre and vision of the current leadership and the debt crisis we are in does not put us on a conducive footing to begin experimenting on such capital intensive projects. This is the government that can’t hold the mines accountable or even negotiate for effective policies that could maximize benefits from current operations but they would rather give huge subsidies.
Do we have the money to pay the current owners? Zamtel issue is not yet settled with lapgreen you want to entangle yourselves with the mines. Anyway EAZ should find another president.
KCM was sold for 25 million dollars we simply pay back the 25million dollars and KCM is back in our hands
Zambians why do u think that you’re not intelligent bane.We have told u we zambians in Europe we are among the best students.Why should we fail to run the mines?Chinese are just patriotic which Zambians are lacking.we are so divided.The politicians both in opposition and govt are so corrupt such that they want to be rich the same day they are in power.These politicians have even destroyed education system in the country.Our children just think that in order to make money u need to be a politican. Politicans don’t want to work hard but loves bribes of million dollas in seconds.why should you work when somebody gives u $10million for just signing a contract?just do the comparison with someone working hard in innovations.how long does it take to make profit of $10Million as an…
Cont
Why should you work when somebody gives u $10million for just signing a contract?just do the comparison with someone working hard in innovations.how long does it take to make profit of $10Million as an individual?For me i still thin we need good ICT systems in place to curb illegalities both in private and govt institutions.Corruption has killed devloping nations.
There are still many mines that can be opened in Zambia. Not just for copper but other minerals such as gold, silver, coal, precious stones, manganese, gypsum, amethyst, phosphates e.tc.
Habazooka should draft a proposal for kick-starting them just like the boys who dreamt up Lumwana which we just ignored did. If the start-up mines don’t collapse within five years, then we would have learnt it. Taking over existing low yielding mines is not the way to go. Lest you don’t know, mining in Zambia has little profit and other gains. It’s why Anglo quit and big boys of mining are not interested in Zambia as they are in the vaunted Chile.
This guy is an arm chair economist, nationalization died a longtime ago. What happened to ZCCM, Zambian Airways, ZIMCO to mention a few? We must learn to move with time, by then we had land phones now there are cell phones, laptops etc. Have you ever seen a company with liabilities that are more than assets be a viable prospect? The biggest challenge we have is our thinking capacities, we have not moved with time. You can not only think about borrowing without thinking about repayments. If due diligence is followed and corruption fought with vigor, a bright future is very much possible, Imagine this coming from the President of the economic association of Zambia? What a clown.
Experience showed that private ownership was the right way of running mines. However, private ownership is not abandonment. Government continues to own shares, to earn company tax, to earn PAYE from each mining company employee, to concentrate on other cores business, including national security.
I am NOT for full nationalization but PARTIAL, WHERE SOME MINES ARE RUN BY INTERNATIONAL INVESTORS, OTHERS IN JOINT VENTURE and 1 or 2 WHOLLY OWNED BY GRZ!! TIMES HAVE CHANGED!!Certainly in 60s,70s and 80s, countries like CHINA, INDIA,BRAZIL, TURKEY and even S.KOREA and to some extent JAPAN were FAR FROM BEING POWERS THEY ARE NOW!! BUT NOW MOST OF THESE ARE EMERGING POWERS AND ARE BIG CONSUMERS OF COPPER, would they refuse to buy copper directly from Zambia through our own “MEMACO”?? I think we should NOT fear to look for ALTERNATIVES but we should ALWAYS BE CAREFUL and STRATEGIC!! LET US EXPLORE FOR NEW MINES AND FIND BETTER WAYS TO DERIVE BENEFIT FROM THEM, CURRENT SET UP HAS FAILED US!!
Agree with this 100%. Don’t forget that the mines HAVE been run by Zambians before and they CAN be.
Today Zambia would be an oasis in the SS Africa if Chiluba had not succumbed to ” fake” info that Zambia was losing 1.0M usd /day by running the mines. How this amount was arrived at, goodness knows.
We can start by taking over KCM. These Indians have contributed to the sluggish growth of Zambian companies by their delayed payments etc. Start with KCM and please opposition, support this man!
lets first of all experiment with Zambia airways and see if we can manage.
Really?? The two are totally different industries.
I agree 100 % …….I didn’t even waste time reading article. We need to take that chance NOW!!!
Let me thank everyone for the wonderful contributions. I would like to remind ourselves that what led the sale of the mines was pure greedy on part of those that were in power! The Roth Child Report on which the sale of mines was based gave two options, 1.Find 600m US dollars to recapitalise or 2.sell it as a single unit. Anglo-America gave the government a third option; give us top managerial positions starting from CEO at premium house in lusaka up to general manager at division level and we will finance the operations. What was the response from the government? No! We will sale the mines as separate units. That’s why KCM ended up in the hands of Anglo-America corporation. When their preferred candidate lost the 2001 presidential elections, they left the country. Mwanasa gifted the…
I suggest that you leave this issue to Mining experts Dr Lubinda. You make no reference to that reasons why we failed to run the mines before and what would have changed this time.
You article sounds sweet to people not in the know but makes no business sense to people in the industry. How is government going raise money on the stock market for projects. Do you know the criteria used by investors to consider lending out the money. We are not talking about raising K5000 here. We are already heavily indebted. How are we going to borrow money for recapitalisation when we are considering austerity measures to minimise debt contraction?
New or Old mines require capital that may not be immediately available even when the soft skills can be immediately be available it requires syndication among-st the owners contractors and banks, Investments banks The capital outlay and operations funding could be huge and the support may require that presence Yes our locals have the mining and managerial soft skills to manage the resources and match the contracts to operational but that capacity unlike our colleagues in the west and south is isolated ad often clustered with foreign influence We did dismantle the basics support for mining sector at one point Without further undo it can be done yes since Zambia has the expertise…
Please try topics that you are competent on. Which Government will run such complex ventures when it’s failing to simply provide an environment for business?
Governments in Africa are only good when it comes to plundering resources. The mines would be striped and rundown in no time. Clearly you have no idea how businesses such as mines are run.
and exposure but the trend global has been a shareholding of 15% managed by the likes of ZCCMIH participation that can be restructured equitably in risk for that increased participation Mining has become increasingly a risk business and the MEGA projects financing might be a turning point for those New Zambian green field mines not the old like the Chile Japanese participating mine projects You can increase the participation and not nationalize because capital and markets can be a learning curve
Reality check kicks in. You’re busy chasing pocket change from donors when your real wealth is being looted before your very eyes.
Yaba! Bwafya. One can shed a tear.
How can we nationalise the mines when we are broke? Nationalising the mines entails buying them back and where are we going to get the money?
We can do it. If others can do it, we can do it. We have a lot of engineers and other fields in fact all fields.
We need to be patriotic, that’s what others have done those who have managed to develop there country they serve there country with passion.
We could even have a mix na na sungu in the mines
Zambia Know your wealthy and extent of your resources and see how you measure up and factor in the Chinese Investments backed on resources
SEE HERE ***********************
I think the GOOD DR Lubinda was speaking in context of VAT REFUNDS IF you are refunding that much ,,,,,,
Zambia Know your wealthy and extent of your resources and see how you measure up and factor in the Chinese Investments backed on resources
SEE HERE www. minerals.usgs.gov/minerals/pubs/mcs/2017/mcs2017.pdf
I think the GOOD DR Lubinda was speaking in context of VAT REFUNDS IF you are refunding that much ,
Educated in Russia, oh yeah? Then he must be a victim of a nerve agent. I don’t think that a normal person can think like Habaazoka. Alternatively he must be a upnd cadre.
WHAT A FOOL ! FOR HOW MANY YEARS WERE OUR MINES NATIONALISED AND LOOTED !! IF YOU WANT ZAMBIA TO SINK EVEN LOWER THAN IT CURRENTLY IS THEN DO IT ! THE ONLY PEOPLE THAT BENEFIT FROM THIS ARE THE CORRUPT FEW THAT ARE IN GOVERNMENT !! YOU ARE A FOOLISH THINKER !
The article does not sound like it was done by a learned person. Sorry Habazoka. Bwana, government managed the mines under zccm and it was a total mess. first you stated that grz is spending $700m in VAT refunds, do you know who created that mess? its you Habazoka with your miss informed articles missled ZRA and the general population into believing that they could milk so much from the mines. Second, you stated that zambia produced 800 000 tons of copper last year. You did not give a break down of which mine produced what. Assuming we continued with zccm, zambia would only be producing 250 000 tons per annum, why, because state owned mines do not expand but shrink over time. The three mines in the north western province are contributing 550 000 tones per annum. The remaining old mines…