Gov’t rejects proposal to nationalise gemstone mines

By NATION REPORTER GOVERNMENT has rejected calls to nationalise the country’s gemstone mines, describing the proposal as retrogressive and insisting that the State has no intention of taking over privately-owned mining assets. Ministry of Mines and Minerals Development Permanent Secretary Dr Hapenga Kabeta said nationalisation was no longer on the government agenda and that the UPND administration would instead if need be, participate in the precious stones sector through its investment vehicle, ZCCM-IH. Dr Kabeta was responding to calls by United Prosperous and Peaceful Zambia president Charles Chanda for the nationalisation of precious minerals and gemstone mines. “In short, nationalisation is not the way to go,” Dr Kabeta said in an interview yesterday. He said the government was committed to encouraging private sector participation in the economy rather than taking over privately-owned assets. “I think the issue of nationalisation is out of the UPND agenda,” Dr Kabeta said. He said Government’s participation in the gemstone sector could be achieved through ZCCM-IH, including by holding shares in mining ventures. “ Government can participate through ZCCM-IH, but not to take over private property,” he said. Dr Kabeta said taking over private mining operations would undermine the direction Government had chosen in managing the economy and encouraging private sector investment. Mr Chanda, who is in collusion with UPND had said the country was losing out on the value of its mineral wealth and called for greater State control of precious stones and gemstones. He also questioned the returns the country receives from its participation in the mining sector and called for stronger national ownership of strategic mineral assets. However, Dr Kabeta’s position signals that Government intends to retain private ownership in the gemstone industry while using ZCCM-IH as a vehicle for State participation.

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