GOLD MINING REFORMS COMING – As minister of Mines says there will be no more `fishy’ gold deals

By OLIVER SAMBOKO

SOME unscrupulous officials in the Ministry of Mines have been accused of planning to grant a repossessed gold mine in Mumbwa to a foreign owned company, Fandu Mining Company in alleged suspicious circumstances.

But Mines Minister and Mineral Development Paul Kabuswe has said that Zambia should expect a comprehensive change in the mining sector in which there will be no more `fishy’ gold deals 

Mr Kabuswe said Government was reorganising the entire gold mining subsector in all parts of the country to ensure Zambians benefited from their abundant natural resources.  

He said in an interview that as far as he was concerned, no such arrangement was in place and that the nation should expect a comprehensive change in the mining sector. 

“As far as I am concerned, there is no such an arrangement. So, if there are such things, then as a Minister I am not aware,” he said. 

He said to the contrary, Government is reorganising the entire gold mining subsector in all parts of the country to ensure Zambians benefit from their abundant natural resources.

Mr Kabuswe said currently, the new dawn administration, through his ministry was actually crafting a gold mining policy and that the country would soon be communicated to the nation.

He has vowed not to allow any underhand dealings in the ministry.

Fandu Mining Company is reportedly interested in the country’s precious minerals. 

However, according to a source closer to the deal, despite the UPND government promising to fight corruption once it was elected into office, some of the officials serving at different levels in the new administration seem to be doing the exact opposite.

“Some actions may seem like the beginning of a major clean up in the Ministry of Mines, others are only meant to pave way for dubious deals that will not benefit Zambia and its people,” said the source. 

On Tuesday, Mr Kabuswe announced the cancellation of an exploration license for Orezone mining for the Mumbwa gold deposits.

Orezone is owned by Irfan Yussuf through a number of nominees including some Zambians. 

According to sources, some senior UPND and government officials are allegedly associated with players in the Mumbwa gold sector which are also foreign owned.

The source also revealed that some Mumbwa based foreign owned mining entities are very confident that the new administration is on their side.  

According to the source, Orezone took over the Mumbwa Gold mine which had already been acquired by Zambia Gold Corporation because the Patriotic Front government directed the Ministry of Mines to do so. 

The sources alleged that the decision to cancel Orezone’s exploration license is meant to clear the way for a foreign owned mining company which has no plan to incorporate the Zambia Gold Corporation formed to facilitate channeling of gold to the Bank of Zambia.