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…AS EXPERTS PROJECT THAT COPPER’s eventual bull run is likely to make oil’s famous 2008 rally look like child’s play 

BY NATION REPORTER

GOVERNMENT has been advised to shelf the decision of selling Mopani Coper Mine (MCM) to new mining investors in view of the prospects of the copper prices soaring in the next two to three years.

Peter Sinkamba, the president of the Green Party says government should not give away Mopani mine but should instead consider capitalizing the asset as it had the potential to generate revenue which the country is currently begging from the International Monetary Fund (IMF) and the World Bank in form of loans.

And global mining experts are projecting that Copper’s bull run was likely to make oil’s famous 2008 rally look like child’s play, because the metal has become critical in the manufacturing of electric motor vehicle batteries.

“For us here at Citi, copper is the energy transition bull trade. The world is cyclically weak right now, and that means the trade is on pause. But copper’s eventual bull run is likely to make oil’s famous 2008 rally look like child’s play,” Max Layton, Citi’s managing director for commodities research, said. 

Copper’s critical role in electric vehicle batteries and other green energy technologies has led some to call it “the new oil.” The metal is used in solar panels, wind turbines, electrical cables, and even your iPhone. In fact, copper is so widely used in construction, manufacturing, and electronics production that it’s often seen as a proxy for global economic activity and a business cycle indicator, earning it the nickname “Dr. Copper.” 

Lately, with the global economy struggling to regain its stride after Covid, the doctor has been sounding the alarm (copper prices are falling), but if you ask Citi, it’s just a minor setback for the energy transition king.

Mr Sinkamba has however said the sale of the Konkola Copper Mine was unavoidable because of its legal encumbrances with Vedanta Resources, who are prospecting to get back the mine after an acrimonious exit a few years ago.   

Mr Sinkamba explained that copper prices were often cyclic and that in the coming two to three years, the prices of copper were expected to increase to an average of US$11, 000 per tonne from the current US$8, 000 and that Zambia would earn more if it kept and ran the giant mine.

“The copper prices are often cyclic. During the time of high prices, it is important that we maximise the profits and when the prices hit the low, we have to manage our resources the best we can. For this reason, there is indeed need that we should not give away such assets. For Mopani, we do not have to give it away at the moment because it requires capitalisation which we can afford as a country. The capitalisation of Mopani Mine is between US$300, 000 million and US$500, 000 million which we can mobilise even through the Constituency Development Fund, Mr Sinkamba said.  

He however said the challenge with KCM was the legal imbroglio the mine was in with Vedanta Resources which would be unable to mobilise resources to recapitalise the mine following its revised credit outlook to negative from stable by S&P Global Ratings.

According to S&P Global Ratings, Vedanta Resources’ weakened access to cash flow from its operating subsidiaries at a time of challenging external financing conditions had raised its refinancing risk. The company has about US$3 billion of debt and funding gap of US$2 billion till August 2024.

Mr Sinkamba said there had been a significant reduction in creditworthiness of Vedanta Resources and the government should work around finding an equity partner that would buy off the mine from the Anil Agarwal owned company.

“With KCM, we have a complication because there is already a legal owner of the mine. The challenge however is that Vedanta Resources is unlikely to pull resources and recapitlise the mine because of its current status of poor credit worthiness following its rating to negative from stable by S&P Global Ratings,” Mr Sinkamba said.

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LEICESTER City coach Enzo Maresca has said he doesn’t know what the future holds for Patson Daka at the club after a failed move away from the Championship side. Daka was linked with a move away from Leicester but deal to Bournemouth collapsed 25 minutes before the close of the transfer window on September 1. […]

By JONAS MISELO

KAWAMBWA District in Luapula Province is set to have its first-ever cooking oil processing and production plant.

Agripreneur Managing Director Scott Montel said his company will not only create jobs in the district but also help create a sunflower production value chain.

He also said his company started buying sunflower seed last year in 2022, when it bought about 30 tonnes. They hope to buy 300 tonnes in 2023.

The plant is a K5.5 million investment and is set to create over seven jobs directly and 1,100 farmers indirectly as out growers. It is also expected to produce 200 tonnes of cooking oil per year.

He said his company is expecting to buy 300 tonnes of sunflower seed per year, which translates to approximately K2.1 million per year injected into the local community. 

Agripreneur will also be selling cooking oil byproducts such as sunflower cake, which is used as animal feed.

And Kawambwa District Agricultural Coordinator Steven Musonda narrated that the setting up of the cooking oil processing plant will help reduce farmer dependence on the Farmer Input Support Programme (FISP).

“Farmers have always cried for fertiliser under the Farmer Input Support Programme (FISP) and others feel that as long as they are not on the FISP programme, then they are not farmers. But now we are calling them farmers because they can grow sunflower with the least input cost and make more money from selling sunflower seed,” he said.

Mr Musonda noted that the coming in of the processing plant will lead to better household income for farmers and lower cooking oil costs for the people of Kawambwa.

He explained that once it is processed locally, the cost is likely to be slightly lower compared to the oils that are coming from outside the district.

Mr Musonda is optimistic that the setting up of the Agripreneur cooking oil plant will also lead to crop diversification.

It is clear that the setting up of the cooking oil processing plant will lead to more than just creating jobs. It will also boost Kawambwa’s economy in a major way.-NAIS.

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By SHERRY CHABALA 

THE Zambia Tourism Agency (ZTA) says local investors in the tourism sector are playing a pivotal role in the development of the sector and should therefore be incentivised.

The agency says the zeal of the local players has given confidence that the sector was thriving because of the empowerment being received from the government. 

Speaking in an interview, ZTA chief executive officer Matongo Matamwandi said the commitment Government had shown through empowerment of local players was an indication that the future of the sector is bright.

Mr Matamwandi said the move taken by Government to empower local players in the tourism sector would enable them to fully participate in the growth of the sector.

He said Government had shown that it was eager to see the sector grow because it was a critical industry to the country’s economy.

Mr Matamwandi is encouraging the local players to be innovative to improve their operations amidst economic hardships.

“Although there is no liquidity in the economy currently, other economic indicators are giving assurance that the situation will improve,” Mr Matamwandi said.

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THE Lusaka July has once again taken centre stage, capturing the spotlight with its eighth annual spectacle held at the Lusaka Polo Grounds. This year’s event was a dazzling display of extravagance, featuring the renowned social media personality and influencer, Mutale Mwanza, affectionately known as “M-nation,” as its esteemed special guest. Mutale made an unforgettable […]

feel restricting the usage of the Pipeline to one company to the exclusion of other players defeats the principle of competitiveness in business

OIL dealers have complained that the extension of a contract to clean up the TAZAMA Pipeline which was awarded to Agro Fuel Investment Limited to begin importing low Sulphur Diesel has effectively curtailed other players in the sector from utilizing the pipeline.

The Oil Marketing Companies (OMC) are concerned that Government has decided to award Agro Fuel Investment Limited a contract to import low Sulphur Diesel after its initial contract to clean up the Pipeline had expired in August.

Government has single-sourced Agro Fuel Investment Limited to procure three consignments of low Sulphur Diesel at a total cost of US$210 million, the decision that has displeased other oil dealers who are unable to use the pipeline.

But efforts to get a comment from Sashi Patel, the managing director of Agro Fuel Investment Limited failed as his mobile phone went unanswered on several attempts.

The Daily Nation sent a press query to Mr Patel asking about the extension of his contract which was initially limited to cleaning the pipeline but by press time, there had been no response to the query.  

“Greetings Sir, we have been informed that your company Agro Fuel Investment Limited was contracted to clean up the TAZAMA Pipeline and that the contract ostensibly should have ended by the end of August 2023. However, the Daily Nation has been informed that your contract has been extended, that you have been single-sourced to import three consignment of processed low Sulphur Diesel worth US$270 million through the converted TAZAMA Pipeline. Could you confirm if your contract has been extended? Your quick response would highly be appreciated,” the press query to Mr Patel read.

But Dr Kafula Mubanga, the president of the Oil Marketing Companies Association of Zambia (OMCAZ) said the extension of the contract should not have been given to Agro Fuel Investment Limited which had already been considered for business.

Dr Mubanga said the apeal of the oil dealers was that the TAZAMA Pipeline should be open to other players instead of being restricted to only one company because that was killing competitiveness in business.

He said Government should have considered floating an open tender so that other players could have participated from which it was going to have a more competitive bidding price.

“We are of the view that the TAZAMA Pipeline should be open to public tendering so that other players can use it to import fuel. We want other players to import and pump their product through the same pipeline and so, the pipeline usage should be open. It is our appeal  that Government should consider allowing other players in the sector to use the facility instead of restricting to Agro Fuel Investment Limited,” Dr Mubanga said.    

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ZAMBIA boxer Lolita ‘Black Diamond’ Muzeya sustained a nasty cut above her left eye after a clash of heads in her loss to Welsh fighter Lauren Price. Muzeya was engaged in a non-title fight in Manchester, United Kingdom over the weekend. Price defeated Muzeya in a fifth-round knockout when the fight was stopped after the […]

By SHERRY CHABALA 

GOVERNMENT has expressed sadness over the suspicious death of  14-year-old Janet Chola in Lusaka.

It is alleged that Chola was brought to Lusaka from Mansa to work as a maid for a family living in Chalala residential area. 

Minister of Community Development and Social Services Doreen Mwamba says unless this couple had legally obtained a guardianship status, they are in violation of the law by keeping the child who is not their biological child. 

Ms Mwamba said other than the involved child labour violation, this act constitutes an offence under the Anti- Human Trafficking Act, section 3 of the laws of Zambia which  provides that a person who recruits, transfers, harbours,  receives or obtains a child within or across the territorial boundaries of Zambia for the purposes of exploitation, commits an offence. 

Ms Mwamba has since urged the police to leave no stone unturned in investigating the events that led to the untimely loss of the juvenile.

“As a ministry we are committed to continue informing the nation on all acts that infringe on the rights of children to grow, develop and thrive. I regret the untimely death of Janet Chola and indeed I mourn with her parents,” Ms Mwamba said.

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THE Anti-Corruption Commission (ACC) has arrested and charged Katete Town Council Secretary for Everty Ng’andu for corrupt practices. Ms. Ng’andu stands accused of utilizing council property, including a frontend loader, tipper truck, tractors, and labor resources, for her personal benefit without complying with the necessary fees and procedures. The misuse of public resources is alleged […]

A Mother of Solwezi has betrayed her daughter after allegedly choosing to protect her husband, rather than her daughters innocence when she refused to report an alleged sexual abuse to police. The 16-year-old victim is believed to have confided in her mother about her step-father sexually abusing her and threatening to kill her if she […]