Speech Delivered by President Hakainde Hichilema at the Mining Indaba 2022
It is my honour and privilege to be part of this year’s investing in African Mining Indaba.
This year’s theme: “AFRICAN MINING: INVESTING IN THE ENERGY TRANSITION, ENVIRONMENTAL, SOCIAL AND GOVERNANCE AND ECONOMIES” could not have come at a more opportune time.
Your excellencies, distinguished delegates, ladies and gentlemen,
as we all know, the mining sector remains critical to the sustainable development of the African continent.
Our continent is blessed with vast mineral resources that are key drivers of the development agenda of most of our countries.
As such this calls for deliberate efforts on the part of African leaders and their partners to ensure sustainable development and management of mineral resources.
These efforts include building down-stream linkages aimed at promoting value addition and manufacturing, as well as up-stream linkages into mining capital goods, consumables and services industries.
The development of supporting infrastructure including: Power, Logistics and Transport, Communications, Significant investment in research, Technology and Development among others, also remains critical.
Our continent is endowed with vast mineral resources that largely remain undiscovered and unexploited.
We also have immense potential in the artisanal and small-scale sub-sector.
Aggressive investment into exploration will unlock the undiscovered mineral resources and create enormous socio-economic impact that will not only lift many of our people out of poverty but create new wealth and prosperity.
We have an opportunity to actualize “agenda 2063: the Africa we want”, which is anchored on harnessing the continent’s endowments embodied in people and natural resources.
We are however, cognizant of the threats that stand in the way of us actualising our aspirations.
Civil strife, conflict and instability has characterised a number of mineral rich areas of our continent.
We must endeavor to foster peace and stability across the continent because conflict impedes investment and the prospect of social and economic growth, that we all desire.
I therefore wish to underscore Zambia’s support to all efforts aimed at resolving the ongoing conflicts on our continent.
We often stress the point that instability anywhere, is a threat to stability everywhere.
Your excellencies, distinguished delegates, ladies and gentlemen,
i wish to share with you our vision of “a new dawn for Zambia’s mining sector”.
Since coming into office in august 2021, our government has been determined and focused on efforts to revive the Zambian economy.
Our economy is anchored by the mining sector which historically, has been a major contributor to our development.
We undoubtedly believe in its potential to be an even greater contributor to our economy as we welcome active and pragmatic collaboration with mining industry players.
We are committed to building a resilient and sustainable mining industry anchored on environmental, social and governance standards, and best practice.
Our determination towards industrialization, job creation and an increased fiscal envelop, sees the mining industry as a core factor to achieving these objectives.
This indeed is why we are here.
We are open for business and we are open to engage and partner with you.
As many of you aware, Zambia is a key player in the global copper mining industry and is home to vast reserves of copper and cobalt.
We are addressing factors that constrain investment and putting in place factors that catalyze it.
Our investment environment will undoubtedly be: Transparent, Consistent, Predictable, Fair, and Intolerant of Corruption.
Momentum is building towards increased mineral production as new mining operations are being established and existing mines are expanding and ramping up production.
We are building strategic partnerships that will help position Zambia’s for future prosperity.
Just last month we signed an MOU with the government of the democratic republic of Congo to facilitate the development of value chains in the electric battery and clean energy sector.
Together we will change the narrative that Africa is only a source of raw materials and establish our nations as leading players in the era of electric vehicles and other green innovations.
We are also welcoming exciting new initiatives from our private sector partners.
I wish to take this opportunity to recognize recently announced plans by first quantum minerals to establish a US$ 500 million dollar solar and wind energy installation that will be among the biggest wind and solar plants on the continent.
We encourage investors to come up with similar schemes as we are ready to discuss and facilitate such initiatives.
Your excellencies, distinguished delegates, ladies and gentlemen,
copper is critical in the green energy transition and there is an ever-increasing demand for it.
We are determined to respond to the high demand for copper and have an audacious goal to take its annual production levels from the current 830,000 to 3 million metric tons in the next ten years.
This is indeed ambitious, but we are confident we can achieve it.
Our improving conducive operating environment, our willingness to work with investors and mining entities, our abundant mineral base, and indeed other factors, will make this goal a reality.
In addition to copper, we are determined to ensure increased production of cobalt and nickel, which are key to the green energy transition and important elements in the production of electric vehicles.
In addition, we are promoting exploration and exploitation of tin, lithium, graphite, rare earth minerals, among others, to contribute to the success of the energy transition.
Dear friends,
allow me to reiterate the Zambian government’s commitment to supporting domestic economic empowerment and job creation without resource nationalism.
We want our citizens to play a critical role in our mining value, and supply chain, along with your investment.
This will undoubtedly add to the sustainability of your investment in our country and secure social acceptance.
Your excellencies, distinguished delegates, ladies and gentlemen,
we are committed to ensuring transparency and accountability. Zambia is an extractive industries transparency initiative (EITI) compliant country and efforts have been in place to ensure promotion of transparency and accountability in the mining sector since 2012.
The “EITI” has created a platform for stakeholders to disclose information on revenues accruing from the mining sector.
This information is crucial for decision making and enhances transparency and accountability on the part of government, mining entities and the public.
To build on this, the “EITI” is currently in the process of implementing beneficial ownership, an essential tool for promotion of transparency in the ownership of mining assets.
We believe that the disclosure of beneficial ownership information will lead to good business practice, build confidence and trust and further signal to investors and other stakeholders that transparency and accountability are at the center of mining in Zambia.
Your excellencies, distinguished delegates, ladies and gentlemen,
we appreciate the important role that the private sector plays in the development of the mining industry.
In response, our government policy will promote a private sector-driven, competitive, thriving and sustainable mining industry.
Private investment is essential and we will ensure stability, consistency and predictability of the policy and regulatory environment, taking into account the industry’s volatility, while at the same time serving the interests of Zambians.
Your excellencies, distinguished delegates, ladies and gentlemen,
allow me to state categorically that Zambia is governed by the rule of law.
It is for this reason that mechanisms are already in place to entrench and enhance tenets of good governance in the administration of mineral rights.
We assure investors of security of tenure and security of their investments, while at the same time ensuring a fair share for Zambians.
As we continue to enhance investor confidence, we are implementing robust policy and legal reforms aimed at stimulating the growth of the sector in the medium to long term.
We are building institutional capacity to facilitate increased in-country processing for various mineral commodities, development of supportive infrastructure including energy, roads, and railways, among others, and enhanced conflict resolution mechanisms in the sector.
Your excellencies, distinguished delegates, ladies and gentlemen,
to ensure transparency in the administration and issuance of mining rights, we imposed a moratorium on issuance of mining rights to facilitate for a comprehensive audit of mining rights administration systems.
We are now working towards operationalization of the online payment portal to promote efficiency and integrity in the administration system of mining rights.
your excellencies, distinguished delegates, ladies and gentlemen,
I wish to take this opportunity to re-emphasise that Zambia is endowed with the critical minerals that are an essential part of the green energy transition.
Our country’s peace, stability and attractive investment environment is ideal for investment.
We invite you to invest in exploration, mining, mineral processing and indeed, the production of value-added products for the green economy.
We see a future where electric vehicle components which include batteries, copper pipes and cables are produced in Zambia and consumed by leading global EV producers.
Your excellencies, distinguished delegates, ladies and gentlemen,
we are ensuring the development of air, road, rail, energy, and communication infrastructure that will improve the mining ecosystem and facilitate greater access to markets.
We invite investors to come to Zambia and see for themselves the vast potential in the mining sector and the sectors that support it.
The government of zambia remains resolute in providing an enabling environment for investment and this is already bearing fruit.
Ladies and gentlemen,
We are delighted with first quantum minerals’ announcement of two landmark investments in Zambia.
A USD $1.25 billion dollar investment to expand production and extend the life of the Kansanshi mine, and an additional $100 million dollar investment in the new enterprise nickel mine.
Together these projects will help create and safeguard thousands of jobs, generate additional revenues and stimulate wider economic activity.
This is an example of our commitment to ease the process of doing business, while maximising the tangible benefits for citizens, through consultation and collaboration.
We hope these investments will be the first of many and invite those gathered here today to open up similar discussions with us and join us in delivering on this new dawn for mining in zambia.
As i conclude, i wish to express my sincere gratitude for the invitation to grace this mining indaba.
I thank you.
[…] “It is my honour and privilege to be part of this year’s investing in African Mining Indaba. This year’s theme: “AFRICAN MINING: INVESTING IN THE ENERGY TRANSITION, ENVIRONMENTAL, SOCIAL AND GOVERNANCE AND ECONOMIES” could not have come at a more opportune time. The energy transition and unprecedented technological… Read full details […]