The Zambia Chamber of Mines says Zambia has potential to grow mining sector to produce one million tons of Copper per annum.

The chamber has also reiterated its call for stability in mining policy.

Chamber of Mines President, Nathan Chishimba says from current indications, Zambia can grow the sector to produce 1 million tons of Copper per annum and then further upward to 1.5 million tons per annum which is double the 1972 pre-nationalization production levels, within the next six years.

Mr. Chishimba says growth is the most sustainable and inclusive means to meet the expectations of all stakeholders over time via measurable progress and increasing tax contribution to the government.

In his 2019 national budget expectations, Mr. Chishimba tells Money FM News that with continued stability and a focus on growth, Zambia will easily attract exploration capital to extend the copper mining industry’s life beyond the twenty years of present proven bankable reserves of 20 million tons.

“By attracting exploration capital, we can increase our proven reserves by over a million tons per year as we did from 1996 to 2005 and once again add decades to the industry lifespan. The other thing industry seeks is the removal of capping of carry forward loss tenure to ten years and the limiting to below 100 per cent of capital allowance claims for equipment and mine building expenditure in a year,” he said.

He feels that this will shorten the break-even period for mining expansion and new projects thereby making the Copperbelt and Northwestern provinces more attractive to mining company managers, institutional shareholders and financiers than it is presently.

“We are confident that stability in the fiscal and regulatory regime for mining complimented with a few more non-cash actions such as restoring working capital tied up in Value Added Tax refunds by offsetting against dues going forward will go a long way in positioning the Zambian mining industry for double digit growth,” Mr Chishimba said.

He has also proposed that the State takes measures to encourage Zambians and Zambian institutions to invest in exploration by offering them tax rebates when they buy shares in such projects.

Mr. Chishimba further believes that this will offer a bright future along the lines that the neighbour Botswana has enjoyed over their last 40 years of policy stability in their mining sector.

He says as a key sector that represents Zambia’s comparative advantage in the global economy, Zambian mining must be seen to be a world beater in creating economic advantage and prosperity for Zambia.

The Chamber President adds that, it is an undeniable fact that when mining does well, other economic fundamentals do well, and thus the opportunities in the Zambian economy expand.