Mubanga sees gold as alternative to Zambia’s debt challenge, predicts $1.4 billion monthly revenue

A business consultant based on the Copperbelt says the answer to Zambia’s debt burden may lie in exploiting its huge gold discovery.

Augustine Mubanga estimates that a well-structured gold mining subsector can stimulate to the tune of US$1.4 billion.

Mubanga said the country cannot fail to get 20 tonnes of gold monthly, which can grant it in excess of US$ 1.4 billion using the prevailing world price of the precious mineral.

“The government should structure a local benefits mining policy that can enable the country gain more from gold, we can generate US$1.4 billion, which would provide an alternative to the IMF,” he said in an interview in Kitwe on Tuesday.

He claimed Zambia’s Chinese debt was around US$6 billion and further suggested that gold can be debt-swaped, thereby reducing the country’s debt burden.

Zambia’s economy continues to face serious economic stress due to its external debt burden as the second US$ 188 tranche from IMF extended credit facility delays.

However, some stakeholders have argued that the country can turn to ease economic survival alternatives by maximizing on the discovery of gold deposits.

Reports from Mines and Mineral Development Ministry suggest the country has about 21 points where aluvia gold is present but that all the mining activities are carried out illegally, meaning no revenue is earned by government.

To make matters complicated, the extent of the presence of gold cannot be quantified, leaving room for speculations.

The free for all mining activities are not helping matters in improving the country’s fiscal measures.

Recently, gold was discovered in Northern Zambia’s Mpika District where an estimated 20,000 illegal miners are reportedly said to be exploiting the resource, as government watches helplessly.

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