Gold mining a game-changer for Zambia
IN TODAY’s contemporary world, gold does not just imply affluence, material wealth and extravagance but it also gives an expression of style and elegance.
The price of the precious metal on the international market has since reached dizzying heights. On the London Metal Exchange, gold is fetching around US$1,900 per ounce.
Realising that gold mining and export could play significant role in diversifying Zambia’s economy, job creation and economic development, Government has declared gold as a strategic mineral.
However, despite Zambia reporting an increase in gold occurrences, the sector is mainly dominated by artisanal and small-scale miners who in most instances, operate illegally. The precious metal is smuggled out of the country mostly by foreigners.
To strategise on a comprehensive mechanism to formalize gold mining and trading in Zambia, Rufunsa district has become a serene ambiance for most of the Government’s initiatives aimed at formalising the sector.
Rufunsa’s Chintimbwi area councillor Josias Malunga is confident that with Government formalising gold trading in Zambia, the sector will create jobs for the unemployed youths.
“Gold mining is a game-changer. If well managed, it would translate into improved living standards among our people, job creation and families graduating from thatched homes to bricked houses,” Mr Malunga said.
ZCCM-Investments Holdings (IH) chief executive officer Mabvuto Chipata said the formalisation of the sector will ensure activities are undertaken in a sustainable manner that complies with various international standards and which have now reached about K1,000 per gramme in some places but the miners are no longer being exploited as it was before ZCCM-IH went into the market,” he explains.
The price of alluvial gold in Zambia has risen to as high as K1,000 per gramme from K600. With the formalised open market, ZCCM-IH has revenue from gold mining and gemstones.
Common Market for Eastern and Southern Africa (COMESA) believes for the region to achieve full potential, the facilitation of a conducive environment for investment in high-value products as well as value addition is important.
Assistant secretary general Kipyego Cheluget said achieve regional objectives, with funding of €111 million from the European Union and a grant of €5.8 million given to Zambia for leather, textiles and clothing value chains reflecting the increased focus on the private sector including women.
Mr Cheluget said dependence on primary commodity production and exportation exposes the country to commodity shocks, price fluctuations and declining terms of trade.
“As a result, a country’s foreign exchange reserves and ability to for gold and gemstone is intandem with the Seventh National Development Plan, which emphasises on diversifying the economy to non-traditional mining of gemstones, gold and industrial minerals to remain buoyant.
Minister of Commerce, Trade and Industry Christopher Yaluma said illegal trading activities in gold mining is resulting in huge revenue losses, environmental
degradation, influx of foreign nationals but with lack of tangible wealth creation for the locals.
It is for this reason that Cabinet, in December 2017, directed the ministries of Commerce, Trade and Industry and Mines and Minerals Development to strategise on a comprehensive mechanism for trading centres in strategic locations.
Further, Government is setting up value addition parks for gold and gemstone lapidary shops in Lusaka, Copperbelt and Livingstone.
Minister of Mines and Minerals Development Richard Musukwa said Government wants to see gold sold and mined safely and emphasized that pick and shovel mining will not enhance the lives of the miners.
Source: Zambia Daily mail
