Mon, 08 Jan 2018 13:45:36 +0000
By BUUMBA CHIMBULU
GOVERNEMNT has said localising the marketing of minerals as a way of ensuring Zambia benefits from the rising copper prices will make the country’s commodities uncompetitive internationally.
Ministry of Mines and Mineral Development permanent secretary, Paul Chanda, said localising the marketing of minerals meant that buyers had to travel all the way to Zambia to access the commodity.
Mr. Chanda explained that by making buyers coming to buy the minerals from Zambia, the country’s commodity was made uncompetitive as most buyers would encounter many risks on the way.
“We are in a competitive world, we are not the only country producing copper, and we are now seventh in the World and second in Africa after Democratic Republic of Congo (DRC),
“This means DRC and other countries are our competitors and so when you say we can localise the market, it is the same thing, whether you sale them locally or abroad is the same because the price is internationally agreed upon,” he said.
Mr. Chanda said in an interview that localising the minerals market would also demotivate buyers from around the World.
He explained that Zambia would benefit from the rising copper prices which were currently trading above US$7, 200 per tonneby ensuring the profits from the commodity was re-invested in other economic sectors such as agriculture.
He said investing using resources from the mining industry to other sectors of the economy would then create an economy of scale.
“When people come to buy from here. They will incur transport costs, you will have insurance costs, they have all these risks they have to take up and, not many will be motivated to come to our country and buy copper,
“Unless people are suggesting that we should add value to our copper meaning that we process copper beyond cathode, we produce products which can compete with other countries,” Mr. Chanda said.
Recently, the Economic Association of Zambia (EAZ) and the Private Development Association (PSDA) observed that localising the market for minerals would ensure the country benefited from the prevailing high copper prices.
According to EAZ president, Crispin Mphuka, the move would also curb the habit of transfer pricing and the under declaration of the commodity by some mines.
And PSDA chairperson, Yusuf Dodia, said it was about time Zambia begun to link all copper export earnings to commercial banks.
Mr. Dodia explained that would ensure all the money was circulated locally and invested in the economic sectors.
