MMMD - PDAC 2008 Presentation MMMD - PDAC 2008 Presentation , March 2 - 5, 2008: Toronto, , March 2 - 5, 2008: Toronto, Canada Canada 1 HON. DR. KALOMBO T. MWANSA, MP HON. DR. KALOMBO T. MWANSA, MP MINISTER OF MINES AND MINERALS DEVELOPMENT MINISTER OF MINES AND MINERALS DEVELOPMENT REPUBLIC OF ZAMBIA. REPUBLIC OF ZAMBIA. MINING INVESTMENT MINING INVESTMENT OPPORTUNITIES IN ZAMBIA OPPORTUNITIES IN ZAMBIA By By
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MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 1 HON. DR. KALOMBO T. MWANSA, MP MINISTER OF MINES AND MINERALS DEVELOPMENT REPUBLIC.
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PERFORMANCE OF ZAMBIA’S PERFORMANCE OF ZAMBIA’S MINING SECTOR SINCE MINING SECTOR SINCE
PRIVATISATION PRIVATISATION
Increased annual copper production from Increased annual copper production from 230,000 to 520,000 metric tonnes per 230,000 to 520,000 metric tonnes per annumannum
Technological innovations and expansion Technological innovations and expansion programmes at existing mines on the programmes at existing mines on the CopperbeltCopperbelt
PERFORMANCE OF ZAMBIA’S PERFORMANCE OF ZAMBIA’S MINING SECTOR SINCE MINING SECTOR SINCE
PRIVATISATION – Cont’dPRIVATISATION – Cont’d
Capital investments exceeding US$2.0 Capital investments exceeding US$2.0 billion in new mines and processing billion in new mines and processing plants.plants.
Next 12 months new mines at Muliashi, Next 12 months new mines at Muliashi, KDMP, Konkola North, Lumwana, Munali, KDMP, Konkola North, Lumwana, Munali, Mkushi, Mokambo, Cheowa and new Mkushi, Mokambo, Cheowa and new smelters at Nchanga and Chambeshi.smelters at Nchanga and Chambeshi.
MINING REGULATORY AND MINING REGULATORY AND FISCAL REFORMS FISCAL REFORMS
New regulatory framework to provide:New regulatory framework to provide:
Sufficient protection and rights to Sufficient protection and rights to investors. investors.
Requirements and incentives for doing Requirements and incentives for doing business.business.
Computerised mining cadastre to Computerised mining cadastre to facilitate timely processing of mining facilitate timely processing of mining rights.rights.
MINING REGULATORY AND MINING REGULATORY AND FISCAL REFORMS – Cont’dFISCAL REFORMS – Cont’dThe new fiscal regime to provide for:The new fiscal regime to provide for:
Equitable distribution of mineral Equitable distribution of mineral wealth between the nation and mining wealth between the nation and mining companies.companies.
Sharing in Zambia’s mining sector Sharing in Zambia’s mining sector fortunes to enable the people benefit fortunes to enable the people benefit a little more while ensuring that the a little more while ensuring that the mines remain profitable and mines remain profitable and rewarding to shareholders.rewarding to shareholders.
MINING REGULATORY AND MINING REGULATORY AND FISCAL REFORMS – Cont’dFISCAL REFORMS – Cont’d
25% Capital Allowance per annum.25% Capital Allowance per annum.
Reference Price to assess mineral Reference Price to assess mineral royalties, metal and gemstones sale royalties, metal and gemstones sale transactions.transactions.
Capital Expenditures on new Capital Expenditures on new projects to be ring-fenced and projects to be ring-fenced and deductible on commencement of deductible on commencement of production.production.
MINING REGULATORY AND MINING REGULATORY AND FISCAL REFORMS – Cont’dFISCAL REFORMS – Cont’dThe new fiscal and regulatory The new fiscal and regulatory framework designed:framework designed:
To work in periods of both high and low To work in periods of both high and low metal prices.metal prices.
To provide for stable fiscal and regulatory To provide for stable fiscal and regulatory regime as mining projects are costly and regime as mining projects are costly and long-term investments.long-term investments.
To move Zambia into a median To move Zambia into a median comparative position of 47% effective tax comparative position of 47% effective tax rate for the mining sector from 31.7%.rate for the mining sector from 31.7%.
NEW OPPORTUNITIES IN NEW OPPORTUNITIES IN ZAMBIA’S MINING SECTOR ZAMBIA’S MINING SECTOR
Zambia is endowed with various Zambia is endowed with various mineral resources including:mineral resources including:
Copper, cobalt, zinc, lead, nickel, platinum Copper, cobalt, zinc, lead, nickel, platinum group elements, manganese, tin, tantalum and group elements, manganese, tin, tantalum and iron.iron.
Limestone, phosphate, feldspars, silica and Limestone, phosphate, feldspars, silica and dimension stones such as marble, granite and dimension stones such as marble, granite and sodalite.sodalite.
Amethyst, aquamarine, emeralds, citrine, Amethyst, aquamarine, emeralds, citrine, tourmaline, gold, silver, diamonds and garnet.tourmaline, gold, silver, diamonds and garnet.
Uranium, coal, oil and gas.Uranium, coal, oil and gas.
NEW OPPORTUNITIES IN NEW OPPORTUNITIES IN MINING SECTOR – Cont’dMINING SECTOR – Cont’dZambia provides enormous opportunities for Zambia provides enormous opportunities for uranium mining and prospects for oil and gas.uranium mining and prospects for oil and gas.
Equinox Minerals Limited is advanced in the Equinox Minerals Limited is advanced in the preparation of feasibility study for uranium preparation of feasibility study for uranium mining at Lumwana in North-Western mining at Lumwana in North-Western Province.Province.
OmegaCorp Minerals Limited has discovered OmegaCorp Minerals Limited has discovered significant deposits of uranium near Lake significant deposits of uranium near Lake Kariba in Southern Zambia.Kariba in Southern Zambia.
NEW OPPORTUNITIES IN NEW OPPORTUNITIES IN MINING SECTOR – Cont’dMINING SECTOR – Cont’dAfrican Energy Resources is examining African Energy Resources is examining two promising sites at Chirundu and two promising sites at Chirundu and along Lake Kariba in Southern Province.along Lake Kariba in Southern Province.
Zambia has adopted International Zambia has adopted International Atomic Energy Agency (IAEA) guidelines Atomic Energy Agency (IAEA) guidelines to regulate uranium mining, processing, to regulate uranium mining, processing, storage, transportation and trade.storage, transportation and trade.
NEW OPPORTUNITIES IN NEW OPPORTUNITIES IN MINING SECTOR – Cont’dMINING SECTOR – Cont’dZambia has made significant Zambia has made significant progress in exploration for oil and progress in exploration for oil and gas in North-Western Province, gas in North-Western Province, Eastern Province and Western Eastern Province and Western Province.Province.
The results of the microbial analyses The results of the microbial analyses of soil samples collected from these of soil samples collected from these Provinces are very encouraging.Provinces are very encouraging.
NEW OPPORTUNITIES IN NEW OPPORTUNITIES IN MINING SECTOR – Cont’dMINING SECTOR – Cont’dZambia will soon invite bids from Zambia will soon invite bids from exploration companies to determine the exploration companies to determine the quantities and types of the oil and gas.quantities and types of the oil and gas.
Zambia’s Petroleum Act is being revised to Zambia’s Petroleum Act is being revised to provide for two separate licences for provide for two separate licences for prospecting and for production.prospecting and for production.
The Petroleum Act is also being amended The Petroleum Act is also being amended to strengthen legal provisions for to strengthen legal provisions for environmental protection and institutional environmental protection and institutional framework to regulate the industry.framework to regulate the industry.