TAKE BACK SHARES FROM KAGEM MINE, GOVT URGED

By Lumbiwe Mwanza

GOVERNMENT should consider negotiating with Kagem Mine and take back some of the shares with the view to develop the country at a more desired rate, Emeralds, Semi-precious Stones Mining Association (ESMAZ) president Victor Kalesha has said.

Kagem mine is 75% owned by Gemfields and 25% owned by the Government. The mine comprises three open pits and is believed to be the world’s single largest emerald producing mine. In 2020, Kagem mine contributed approximately US$107 million to the Government in cumulative corporation taxes, mineral royalties and dividends.

But speaking to The Scoop, Mr. Kalesha said more effort was needed to ensure that Zambia’s minerals were not exploited to an extent where host communities were not benefiting adequately.

He said that it was time African countries and Zambians themselves collaborated effectively with regard to fostering socio-economic development.

“For a very long time, we have been exploited in terms of our mineral resources going into the hands of the Western countries and other countries. It is high time African countries and Zambians ourselves started embracing each other in trying to develop our nations and the continent. The continent at large is not benefiting from the mineral deposits it has with Lufwanyama as a good example in Zambia that is still underdeveloped despite some mineral deposits discovered in the area,” Mr. Kalesha said.

He said that from the time some mineral deposits were discovered, there was no tangible development to write home about, a situation he said should be changed for the benefit of the larger population.

“We are appealing to the Government to consider taking back some of the shares from Kagem Mine which has some of Zambia’s cream of the emeralds. Kagem Mine has the biggest land in the emerald area but is operating on less than 10 percent of the land. We appeal to the Government that as it were in Botswana where the Government negotiated for a 50-50 ownership of minerals, I think it is time we moved this to Zambia,” he said.

He said that it was selfishness on the part of the national leadership then, to sell shares in such a reckless manner without prioritizing the development of the country.

He insisted that taking back some of the shares or part of the land would help create jobs and help generate the much needed revenue to develop the country.

He said that if that whole land was operational, over 2000 jobs would be created and that would translate in economic transformation.

He said that efforts aimed at ensuring that Africa benefited adequately from its mineral deposits should be scaled up adding that the continent’s precious minerals should be well protected unlike the current situation where Africa’s immense mineral wealth was being exploited.