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Zambia’s mining body has today slammed critics of the deal between Governments’ oversea of its stake in the industry, ZCCM-IH and a privately owned mining company First Quantum Minerals (FQM).
The mining body, Zambia Chamber of Mines (ZCM) has therefore described their views as point scoring behaviour wilfully twisting the benefits and history of a deal that will be good for the industry and the country.
This is in a case where ZCCM-IH has entered into a transaction with FQM where it will convert its dividend rights and 20% equity value in Kansanshi Mining Plc (KMP) into a life of mine royalty.
Some stakeholders such as think tanks have expressed mixed reactions to this development with most of them being concerned with state’s less “control” of the mines.
Read more: Centre for Trade Policy wants more government control of mines https://www.zambiamonitor.com/states-less-control-over-mines/
But these sentiments have angered ZCM Chief Executive Officer Sokwani Chilembo who slammed those critics https://en.wikipedia.org/wiki/Critic while insisting that it is a good deal in a statement he issued today December 9, 2022 in Zambia’s capital, Lusaka.
Zambia Chamber of Mines Chief Executive Officer Sokwani Chilembo
“This shocked outrage is misplaced, and being mostly fuelled from quarters that were privy to the historical background of the negotiations,” Chilembo says.
Chilembo has emphasised that this is a good deal for ZCCM-IH, looking at the international comparisons.
He says the Chamber expects to see a broad a political support for this announcement, rather than the barrage of attacks recently seen in the media.
He explains that ZCCM-IH has secured a regular, consistent source of income from Kansanshi which will allow them to deliver on their strategy of becoming a real player in Zambia’s mining industry, throughout the mining value chain.
“It is time we stop misrepresenting the facts, otherwise our opinions – and the quality of our public debate – will be detached from reality. We must start getting behind the industry as an engine for national development, rather than just scoring points for point’s sake,” Chilembo says.
According to the Chamber of Mines, the 3.1% revenue-based royalty secured by ZCCM-IH in its negotiations is at the top end of the range normally seen for this type of arrangement.
Chilembo says the agreement calls a halt to the tit-for-tat legal disputes between government and its main mining investor that has caused great reputational damage, and came at a great cost for both parties in time, money and effort.
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