Mine suppliers want gold sub-sector re organised

THERE is need for Government to reorganise the gold sub-sector by putting up infrastructure to promote value addition, Association of Mine Suppliers and Contractors (AMSC) president Augustine Mubanga has said.

Giving the end of year perspective for the mining sector, Mr Mubanga said the gold subsector needs to be reorganised if the country is to derive maximum benefits from it.

He said this should be done by putting up infrastructure that will promote value addition to gold, unlike exporting it in its raw form as has been the case with copper over the years.

“We would want to see, for instance, investments into the refinery of gold, meaning that a refinery must be put up so that gold is refined to its purity to ensure that
we have value for this metal,” Mr Mubanga said.

He said the sector also needs clear-cut regulations especially that the mineral has been declared as being strategic to the economy of the country.

Mr Mubanga said gold has to be safeguarded and protected from people that are mining it illegally at the expense of majority Zambians.

He said talk surrounding gold and its benefits to Zambia will only become a reality if the sector is reorganised and the right infrastructure put in place to ensure that it thrives.

Mr Mubanga also said there is need for procurement in the mining sector in general to benefit more local businessmen and women.

He said although copper is one of the largest contributors to exports and the gross domestic product, its potential is still under-utilised because not many Zambians are participating in the mineral’s value chain.

Mr Mubanga said currently, the appetite for copper use globally is growing as can be seen by the favourable price obtaining on the London Metal Exchange, and that
Zambia can use the prevailing demand to its advantage.

source: Zambia daily mail