By BUUMBA CHIMBULU
GOVERNMENT is on the right track to gain control of some mines and be in charge of resources and major decision-making, Economic Association of Zambia (EAZ) president Lubinda Haabazoka has said.
Dr Haabazoka said the government intervention would ensure mines begin to operate at optimal level.
He said with Government control, Mopani Copper Mines and Konkola Copper Mines would start operating at 100 percent and ensure the country stopped losing the much needed foreign exchange because metal prices were at their highest.
“It’s very good for the government to intervene in mines that are operating contrary to the wishes of the people of Zambia but it’s at the same time important that Mopani begins to operate at optimal level. There is also need for KCM to start operating at 100 percent because the country is losing much needed forex at a time when metal prices are at their highest,” Dr Haabazoka said.
And Dr Haabazoka urged Government to establish why the country was not deriving maximum benefits from exports of copper and cobalt whose prices had risen significantly on the international market.
He observed that the country had not recorded any significant increase in foreign exchange inflows even when Government had suspended debt service for the last eight months.
Dr Haabazoka said Zambia today had more mines than ever before with manganese, gold and other minerals being mined alongside copper and cobalt
He said prices of copper and cobalt which account for 78 percent of foreign exchange inflows were currently trading around US$9,147 per tonne and US$52,000 per tonne respectively.
“Two years ago, Cobalt prices plummeted to under $27, 000 but today they are trading above $52, 000 per tonne,” he said.
He said answers must be provided where billions of money Zambia was currently making from copper and cobalt were going to.
Dr Haabazoka wondered that Zambia had not been making debt payments since mid-last year and yet revenue from copper and cobalt was not significant.
“Despite the numerous small medium and large scale mines operating in the country, Zambia has been unable to see any positive effect on the economy be it exchange rate or tax inflows,” he said.
Dr Haabazoka said: “When you drive from Kapiri Mposhi up to Solwezi all you see are trucks! Trucks full of mineral resources!
“The big question is, where is the forex and all the money from copper, cobalt, gold and manganese mining going to?” he questioned.
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