Nationalise emerald, gem mines - Chanda

By NATION REPORTER ZAMBIA should consider nationalising emerald and other gemstone mines to secure greater returns from its mineral wealth instead of accepting poor dividends while depending on foreign loans such as those from the International Monetary Fund (IMF), which are acquired with harsh austerity conditions, Charles Chanda has said. Mr Chanda’s proposal invites comparison with Colombia, which exercised extensive state control over emerald mining during its years as the world’s leading producer. A World Bank report described Colombia as the leading producer and recorded the transfer of responsibility for emerald production from its central bank to the state mining enterprise, ECOMINAS, at the beginning of 1969. Colombia’s experience, however, involved changing arrangements rather than permanent, exclusive government operation. According to UNCTAD, emerald mining was officially a government monopoly until 1968, after which a state enterprise was established to develop and manage deposits in cooperation with the private sector. And in an interview, Mr Chanda, the leader of the United Prosperous and Peaceful Zambia (UPPZ) president is arguing that Zambia needed stronger control over its precious minerals and an independent investment company capable of maximising national earnings. “What we need to do is let’s have nationalisation for precious minerals and gemstones. Those ones, no question about it,” he said. Mr Chanda questioned the returns from Zambia’s emerald interests, saying existing investment arrangements had failed to deliver the benefits citizens expected. “How can you accept dividends of US$1.5 million for six years when, in the same period, a one-kilogramme emerald was sold for US$28 million?” he asked. He cited the figures to support his demand for a review of the country’s gemstone investment model, criticising the performance of ZCCM Investments Holdings (ZCCM-IH). “We need an investment company, independent, not this thing of ZCCM or whatever it is,” Mr Chanda said. He argued that Zambia’s extensive mineral wealth should contribute more substantially to infrastructure development, economic expansion and public services. Mr Chanda said it was unacceptable for the country to continue relying on International Monetary Fund (IMF) loans while receiving what he considered inadequate returns from finite natural resources. He argued that such borrowing came with harsh austerity conditions affecting citizens, while stronger mineral revenues could reduce the country’s dependence on external financing. Mr Chanda said the Government should explore investment arrangements that allowed it to work with investors while retaining a greater share of the wealth generated in Zambia. He also expressed concern about ownership of strategic economic assets, including banks, and called for stronger domestic institutions capable of retaining and reinvesting earnings within the country. Mr Chanda said gold, emeralds and other precious resources could support future generations if their exploitation and proceeds were managed prudently. He said his ambition to hold political office was driven by a desire to change the management of national resources and ensure that mineral wealth produced tangible benefits for Zambians.

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Nationalise emerald, gem mines - Chanda