State must stick to mining trajectory to meet targeted copper production

By BUUMBA CHIMBULU

GOVERNMENT will need to maintain the current enabling environment and tackle broader issues, such as the country’s power deficit if Zambia is to meet the targeted copper production of three million tonnes per annum by 2031.
Tackling these broader issues will ensure that new and existing mining projects flourish, according to the PwC Zambia Country Senior Partner, Mr Andrew Chibuye.
Mr Chibuye pointed out that the ruling United Party for National Development (UPND) had maintained a stable policy environment for the mining sector since coming to power in 2021.
“This has helped rebuild confidence in the sector and encouraged new investments in both brownfield and greenfield projects,” he said in a forward contained in the PwC third edition of the Zambia 2024 Mining Report.
PwC’s third mining report continue to analyse proposed and actual changes to policy that affect the sector, along with the associated risks and benefits.
According to Mr Chibuye, the mining sector continued to be a cornerstone of the country’s economy, contributing significantly to the country’s gross domestic product (GDP), tax revenues and export earnings.
This report analysed the sector’s performance in 2023 and where available, up to August 2024, highlighting recent developments and prospects for the sector.
In the report, Mr Chibuye said, PwC investigated key policy changes during this time and assess their potential impact on the sector.
“Our insights aim to inform stakeholders – policymakers, investors, mining companies and anyone else with interests in the sector – about the current state and future direction of Zambia’s mining industry.
“Zambia has faced significant economic challenges in recent years. Initially, these challenges stemmed from the country’s unsustainable debt burden and the Covid-19 pandemic,” he said.
Additionally, Mr Chibuye said “subsequently, geopolitical tensions and conflicts have exacerbated the situation. Now, the devastating consequences of this year’s climate-change-induced drought have put further strain on the domestic economy.
“In addition, there has been a significant decrease in the mining sector’s productivity in recent years, which has also had a negative impact on econ