MIMBULA MINERALS SHAREHOLDER LAMENTS LOW PARTICIPATION
MIMBULA MINERALS SHAREHOLDER LAMENTS LOW PARTICIPATION OF ZAMBIANS IN RUNNING MINES
Mimbula Mine Director and Shareholder Fidelis Chanda has warned that Zambia’s increased mineral production may not translate to improved economic well-being for the country because the majority of the proceeds are externalized by foreign mine owners.
Mr. Chanda has emphasized that the current mining sector ownership structures are designed to funnel profits outside of Zambia, highlighting the need for more Zambian businesses to acquire shares and replicate the Mimbula shareholding structure to domesticate revenue and benefits.
Mr. Chanda says despite Zambia’s copper production of over 820,600 tons last year, representing a 12% increase from the previous year, this has not positively impacted the exchange rate and overall, economy.
He is advocating for Zambians to take ownership of the mines, partnering with investors who can bring in foreign direct investment, contending that increased mineral production is only beneficial if the proceeds are reinvested in the local economy, rather than being externalized by foreign interests.
Mr. Chanda has further highlighted that Mimbula Mineral Resources is set to invest an additional $250 million in phase 2 of its mining operation following the initial $100 million in phase 1, ramping up production to 60, 000 tons annually from the current around 16,000 and increasing employment figures to 1500 from 1300 currently.
PN
