Business News

Wed, 29 Mar 2017 12:08:03 +0000

Investors pump $5m into tin ore mining

By BUUMBA CHIMBULU

ITALIAN and French investors have pumped in US$5 million in Daled Mining Limited for the production of tin ore and the project is poised to start in the next three months in Southern Province.

The tin ore mining firm is expected to create 1,000 jobs at full production in Zimba district.

The project is also expected to generate foreign exchange for Zambia owing to current high prices for the commodity.

Tin prices are currently trading at US$20,100 per tonne on the London Metal Exchange (LME) and this once the product commences could contribute to Zambia foreign exchange generation.

The firm had since 2006 been prospecting for ways to access the ore in the area and was granted a license in 2015 of over 40 square metres in Zimba district.

Mines operations director, Edward Simukonda, said in an interview that the mine had agreed with the investor to invest an initial amount of US$5 million.

“We have new investors from Italy and France. They are pumping in a bit of money for us to start operations, so we are just currently trying to clear what was owed and then we will start production.

“The agreed amount is an initial US$5 million, they will be pumping in a bit more as work progresses because they want to put up a smelter as well,” he said.

Mr Simukonda explained that the mine which was supposed to kick-start last year would in the next 90 days be ready to start full operations.

He explained that the mine delayed to start as it was an enormous project which demanded huge funding.

“As we are preparing the area, we are also picking some from the ground, we have a few tonnes but the actual mining production should be able to start within the next three months because then we would have already started putting up the plant and other equipment that have not been installed yet.

“Potential investors have shown interest and they are pumping in money and the plant should be up and running in the next 90 days,” he said.

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Cotton firm plans to increase hectarage

By BUUMBA CHIMBULU

A PRIVATELY owned company which grows cotton in Zambia is targeting to increase the area of cultivation by 40,000 hectares in the next three years.

Grafax Cotton Private Limited, one of the leading cotton ginning companies in Zambia, has financed 60,000 hectares in Zambia through approximately 18,000 farmers across the cotton growing areas which include Mumbwa, Kabwe, Chipata, Lundazi and Katete.

Company director Bipin Bajaj said the company was targeting to increase the area of cultivation to 100,000 hectares from the current 60,000 in the next three years.

“Grafax is poised to finance and support farmers for up to 100,000 hectares land for successful cultivation. We finance all these farmers, and for this task, we engage around 500 supervisors who work mainly during the cotton season of four to six months,” he said.

Mr Bajaj, in an interview, said the company which employs 300 Zambians as factory workers at the peak of the season currently produces 180 tonnes of lint per day.

He said the company employed around 800 to 900 employees in total during the crop season and about 80 during the off season, all of them Zambians.

Mr Bajaj said the company was fully committed to the core business of cotton and related products in Zambia as it aimed at generating maximum possible employment and essential foreign currency for the country through the export of cotton lint.

He said the company exports 100 percent of its cotton lint products to Europe and Asian countries.

“The company’s values are brought to this prospering country with the promise to ensure the best quality cotton in all ways. Our primary motive is farmers and their benefit is our benefit,” he said.

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KAGEM, Gubelin partner in emerald traceability test

By MAILESI BANDA

KAGEM, a member of the Gemfields emerald mines, has become a test partner with Gubelin in pioneering a new Swiss technology that can trace emeralds back to the exact spot of mining.

Gemfields chief executive officer, Ian Harebottle, said embracing innovation and technology would increase transparency in the gemstone industry.

He stated that technology offered a multitude of benefits to the mining sector.

“Embracing innovation, technology and increased transparency is at the heart of our approach. We were, therefore, thrilled to assist Gubelin in the testing of this new technology and we are very excited about the outcome as it offers a multitude of benefits to the industry and the consumer,” he said.

He explained that nanotechnology was a branch of technology that dealt with dimensions of less than 100 nanometres, adding that the size of these particles made them invisible to optical microscopes.

He said the tests did not affect the appearance, quality and properties of the stone.

And Gubelin managing director Daniel Nyfeler said the technology offered all stakeholders along the entire supply chain, from the miner to the final customers.

“Proof of the exact source of emeralds instils confidence and creates trust. It enables a new level of transparency for the gemstone trade,” he said.

He explained that partnering with Gemfields for the feasibility study would bring forward-thinking to the industry.

He said the Emerald Paternity Test was a true game changer for the coloured gemstone industry.

He explained that it was the first of a series of technologies and services developed by Gubelin Gem Lab dedicated to bringing more transparency into the gemstone industry.

Meanwhile, Raphael Gubelin, president of the Swiss family-run business, of which the laboratory is a fully independent subsidiary, said they were working to make the minerals sector competitive.

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Banking services vital in economic growth-EAZ

By MAILESI BANDA

THERE has been an improvement in the number of people utilizing the banking services in Zambia though generally the number of people that are unbanked remains high, Economic Association of Zambia (EAZ) President Crispin Mpuka has observed.

The association president said the number of people was especially high in rural areas mainly due to limited banking facilities and financial knowledge.

Speaking in an interview with the Daily Nation, he said the high number of people that were unbanked raised an economic concern as personal savings contributed to economic growth.

Dr. Mpuka said there was need for the stakeholders in the development of the banking sector to raise the profile of financial literacy especially in the rural areas.

“There is an improvement in the number of people that are banking but generally the number of people that are unbanked still remains high especially in the rural areas and that tends to raise a concern because everyone needs to raise savings in the process of banking for the individual economic growth,” he said.

He said it was important to raise the profile of financial literacy among the population through the key basics and also have financial education given to members of the public.

He said it was important that more time was put in financial education if the country was to carry the population along in economic growth.

He stated that people should be aware of the happenings in the financial sector.

“There is an urgent need for us to widen our reach in terms of financial education, an ordinary Zambian knows less on matters of finance and so if the majority remain unbanked, it is a challenge to the economy,” he said. He advised that there was need for the profile to be raised in availing financial information to the public, adding that people needed to be aware of what is going on in the financial sector.