Zambia has turned its failing copper mining industry around through the privatisation of Zambia Consolidated Copper Mines in 2000, halting a US$1 million loss per day and preventing per capita GDP from decreasing further. Since then, First Quantum Minerals Ltd., through its operation of two of Zambia’s largest mines, has had a profound impact on raising copper production and contributing to the development of the country.
Following his 20-year experience working for First Quantum in Zambia, the author shares the challenges he encountered in operating a mine in Africa and his recommendations to enable a thriving private sector. These include governments recognising mining as a long-term investment and thus ensuring stable tax rates for current and future investors; maximising natural resources directly and indirectly, beyond their inevitable depletion; encouraging small investments that add to upstream beneficiation processes; stamping out corruption through transparent government tenders; striving for bureaucratic efficiency, in particular easing the obstacles to the establishment of new businesses; lowering the cost of inputs such as electricity and the movement of goods across borders; treating all stakeholders as equal under the law; and most notably, prioritising basic education and upskilling as the key groundwork to a modern economy. These challenges can be overcome, and the recommendations can be considered by African governments with a steadfast forward-looking mindset, towards improvement and growth of their economies and their people in future years.
Report by The Brenthurst Foundation