The new Zambian government is emphatic about the need to develop a local copper processing industry. It is considering setting up a metal exchange to supply the industry.

Zambia is Africa's largest producer of copper but the metal is not readily available and there is no developed local market. Only a handful of copper processing plants exist in the country but their output volume could be much higher. Most of the copper is moved out of Zambia as raw metal. The new government wants greater local processing to increase export earnings, job creation and to increase the size of the manufacturing sector.

Mr Robert Sichinga the Minister of Commerce, Trade and Industry said that the plan was to set up a metal exchange as a public private partnership and to link it to international markets. But doing that would require local skills, he said when he opened a training seminar of the London Metal Exchange in Lusaka last week.

Mr Sichinga said that "It is our hope that through interaction with experts from the LME, we can derive ideas that will help us improve our local capital and commodities market and eventually enable us to set up Zambia's first metal exchange."

The government wants to build a well developed mining sector with strategic metal marketing and export structures and is encouraging industries that can process the minerals so Zambia is able to earn more from exports.

Mr Sichinga disclosed that the mining policy framework is to be reviewed to provide a strategic direction on how the sector can be managed to contribute to the economy fully. Emphasis will be on the review of legislation to create an enabling environment for business to flourish.

He said that also efforts will be made to introduce attractive incentives for local and foreign investors. It was the first time that hints emerged as to what is in store for the mines under the new administration.

Mr Wilbur Simusa the Minister of Mines, confirmed this when he said it was time for Zambia to shift from being only a primary producer to developing copper based industries. He directed the Securities and Exchange Commission and the Zambia Development Agency to work out proposals on how local firms interested in processing can access copper.

He said that "The need for the development of value-addition sectors to underpin Zambia's economic growth cannot be over emphasized. The government is in a hurry to create industries based on copper, so as to create employment and uplift living standards."

(Sourced from www.timeslive.co.za)