We are pleased to release our latest Discussion Paper 'The Challeng of Mining in Africa.' Zambia has turned its failing copper mining industry around through the privatisation of Zambia Consolidated Copper Mines in 2000, halting a US$1 million loss per day and preventing per capita GDP from decreasing further.
Since then, First Quantum Minerals Ltd., through its operation of two of Zambia’s largest mines, has had a profound impact on raising copper production and contributing to the development of the country. Following his 20-year experience working for First Quantum in Zambia, the author shares the challenges he encountered in operating a mine in Africa and his recommendations to enable a thriving private sector.
These include governments recognising mining as a long-term investment and thus ensuring stable tax rates for current and future investors; maximising natural resources directly and indirectly, beyond their inevitable depletion; encouraging small investments that add to upstream beneficiation processes; stamping out cor- ruption through transparent government tenders; striving for bureaucratic efficiency, in particular easing the obstacles to the establishment of new businesses; lowering the cost of inputs such as electricity and the movement of goods across borders; treating all stakeholders as equal under the law; and most notably, pri- oritising basic education and upskilling as the key groundwork to a modern economy.
These challenges can be overcome, and the recommendations can be considered by African governments with a steadfast forward- looking mindset, towards improvement and growth of their economies and their people in future years.
Click below to read the full paper.DOWNLOAD PAPER