Africans In China

The China National Electric Equipment Corporation (CNEEC) has shown interest in developing the Kafue Lower Gorge Hydro Power Station at a cost of $1.5 billion.

Corporation President, Zhao Ruolin, says the Chinese power company will source for the money if the Zambian government agrees to contribute fifteen per cent of the total cost.

Znbc’s Luckson Nthani reports that Mr. Zhao made the pledge in Beijing on Monday.

This was when a delegation of Zambian parliamentarians and government officials visited the Headquarters of CNEEC which is solely-owned by the Chinese government.

He also said CNEEC is willing to help Zambia to develop alternative sources of energy from bio-mass, thermal, solar and wind.

At the same meeting, Chief parliamentary Whip, Vernon Mwaanga thanked the government of China for supporting Zambia’s efforts to meet its energy needs.

And Commerce Minister Felix Mutati has invited the President of CNEEC, Mr. Zhao to Zambia in July to attend a SADC pledging conference for the Kafue Lower Gorge Power Station Project.

Mr. Mutati said Zambia’s power deficit needs urgent attention.

CNEEC has already signed a Memorandum of Understanding with private investors in Zambia who are planning to develop a hydro-power station on the Kalungwishi River in the Luapula Province.

The Kalungwishi River Power Station is expected to cost $600 million.

[ZNBC]

(lusakatimes.com)

Chinese investment in Zambia is expected to hit $4 billion when Zhonghui Mining Group limited invests $3.6 billion in mining projects in North-Western and Luapula provinces.

Commerce Deputy Minister, Richard Taima says this makes China the single largest investor in Zambia.

Mr. Taima said this in Lusaka, Friday when he received a business delegation from China at his office.

The seven-member delegation is in Zambia for two days and will also visit Livingstone.

Mr. Taima paid tribute to economic relations that exist between Zambia and China particularly with china’s support in developing the economic Zone in Zambia.

Delegation leader, Chen Bing Hui said the team is in the country to explore investment opportunities in mining, automotive and furniture sectors among others.

He said the visit to Zambia is aimed at assessing the country’s investment climate and which areas of the economy offer the best investment opportunities.
(thelusakapaper.com)

LUSAKA (Reuters) -

China Nonferrous Metal Mining Corp. (CNMC) on Saturday pledged to invest $400 million in Zambia’s Luanshya Copper Mines (LCM) after formally taking over the running of the mines, officials said.

Mines and Minerals Development Minister Maxwell Mwale said CNMC would also develop the Mulyashi project, which previous owners of LCM had said could start producing 60,000 tonnes of copper cathode by 2010.

“It is the expectation of the government that CNMC will invest no less than $400 million in re-opening Baluba mine and developing the Mulyashi project,” Mwale said during the ceremony to hand over the mine to CNMC.

Both Baluba and Mulyashi are part of LCM, a joint venture of International Mineral Resources (IMR) and Bein Stein Resources Group (BSRG), which also operated Chambishi Metals Plc, the southern African country’s largest cobalt producer.

CNMC Vice President Tao Xinghu said CNMC would reopen Baluba and develop Mulyashi as soon as possible, but he gave no timeframe.

“For Mulyashi, we need to carry out (a new) study and make a new development plan,” Tao said.

The minister said the re-opening of the Baluba mine would make it possible to reemploy some of the 1,740 miners who were laid off after the mine was placed under care and maintenance at the end of last year.

CNMC’s Xinghu said at the ceremony the company had commissioned the Chambishi smelter after a $520 million investment in the operation and its support facilities.

Tao said the smelter, with an annual capacity of 150,000 tonnes, would help Zambia increase its output, estimated to reach 600,000 tonnes in 2009.

“Our investment in Zambia and in Luanshya aims for long-term development rather than for profits in a short time,” Tao said.

Mwale also said the government had raised its own stake in Luanshya to 20 percent from 15 percent, following the pledge it made earlier this year to raise state shareholding in all the mines to 35 percent in a bid to influence decisions in the running of the mines, the country’s economic lifeblood.

(Reporting Shapi Shacinda; Editing by Agnieszka Flak and Keiron Henderson)

Zambia, Africa’s top copper producer, has picked a Chinese firm to run a major mine, widening China’s influence in the sector at a time when the metal is rising on prospects of a global economic recovery.

LUANSHYA, ZAMBIA REUTERS -
Zambia, Africa’s top copper producer, has picked a Chinese firm to
run a major mine, widening China’s influence in the sector at a time when the
metal is rising on prospects of a global economic recovery.
Zambia’s President Rupiah Banda said China’s NFC Africa will take a
majority stake in the closed Luanshya Copper Mines (LCM), which will reopen
later in May.
The LCM, which was a joint venture of the Bein Stein Resources Group
(BSRG) and International Mineral Resources (IMR), shut the mine in December,
citing lower metal prices.
“The major concern of most of the people in the country is how
much capital will they inject into that mine, we know that they understand
cost implications, but it’s one thing to believe you can put it as part of the
other mines that you own and another to inject the 500 million plus capital
required to inject into that mine and revive it, and there are huge
liabilities which will of course be taken up by the government I am sure, and
whether government will really pay off the miners retrenched and who won’t be
absorbed, is another question because this becomes a hazard as well,”
said Chibamba Kanyama, an economic analyst, in Lusaka.
The metal, used in construction, has doubled in value since the start
of the year on the back of hopes that falling inventories signal a recovery in
demand, and the mine’s re-opening is a boost to Zambia’s economic
lifeblood.
“Most of these other people who come on board here, come because
of the activities in the mining sector, so when the signal has been sent again
that there has been a new buyer into the Luanshya Copper Mines, it sends a
positive signal that Zambia is not as risky an economy as has been perceived.
There is still potential in this country and we believe that other potential
investors in other sectors including the resource investment sector, or the
extraction industry will begin to see that after all it is not as bad as we
thought,” Kanyama said.
In what is a now familiar sight across Africa, China’s drive to secure
minerals, oil and a place for its workers and industries to thrive is
converging with Zambian government’s plans to tap the potential of its copper
mines.
China’s Nonferrous Metal Mining and Yunnan Copper Industry are about to
commission the 300 million US dollar Chambishi copper smelter, to produce
150,000 million tonnes a year.
Other Chinese companies have promised to invest even more in the
sector.
The government had said it will increase its stakes in all copper mines
to between 25 percent and 35 percent from about 15 percent, in order to
exercise more influence on their running, and prevent closures that could
result in job cuts.
Luanshya was to have been the test case in the scheme, which analysts
and companies said may scare off investors already unnerved by the global
downturn, hurt plans to boost copper output and further demoralise
workers.
“The social discomfort of the people of Luanshya has worsened over
the years and they have lost faith in any new owner or in any new ventures or
initiatives to do with Luanshya mine and as a result you find most of the
miners may go into the mine but for temporally gains only, may not fully not
fully commit themselves but on the plus side and I think it’s a big plus we
have saved the mine from collapse just the maintenance costs at the time when
the previous owners left have been huge, extremely huge such that the benefit
of closing off the mine outweighed the benefit of maintaining it,” added
Kanyama.
Copper contributes 63 percent to Zambia’s foreign exchange.

(mpelembe.blogware.com)

The Zambia Congress of Trade Unions (ZCTU) says it is unfair to label all Chinese investors as exploitative.

ZCTU president Leonard Hikaumba told ZANIS in an interview that some Chinese investors have proved to be good investors.

Mr Hikaumbais sheduled to meet president Banda at Hippo Lodge to discuss labour related issues

Mr. Hikaumba further noted that exploitation of workers was not exclusive to some Chinese investors as other employers were equally guilty of mistreatment of workers.

He said it is therefore not fair for the people to look at Chinese investors as the only employers that exploit workers in the country.

Mr. Hikaumba has however appealed to NFCA, the Chinese investor that has taken over Luanshya Mine, to abide by the labour laws.

He urged the Chinese investor to have respect for Human Rights and offer decent conditions of service.

Mr. Hikaumba said the investor should also seek to ensure Mine safety standards are upheld.

He said the Labour Movement would be vigilant in ensuring that labour laws are strictly adhered.

And the Forum for Democratic Process (FODEP) has commended government for securing an investor to run Luanshya Mine.

FODEP President Stanly Mhango said the Mines Workers’ Union of Zambia (MWUZ) should engage the Chinese investor to orient them on the working conditions and the labour laws of the country.

Mr. Mhango appealed to Government and MWUZ take up the challenge of ensuring that workers at the Mine are not exploited by the Chinese.
(zambianwatchdog.com)

By Shapi Shacinda

LUANSHYA, Zambia,  (Reuters) - Zambia, Africa’s top copper producer, on Friday picked a Chinese firm to run a major mine, widening China’s influence in the sector at a time when the metal is rising on prospects of a global economic recovery.

Zambia’s President Rupiah Banda said China’s NFC Africa will take a majority stake in the closed Luanshya Copper Mines (LCM), which will reopen later in May.

Its previous owners shut the mine in December and said its Luanshya’s Chambishi Metals Plc and Baluba copper mine units had been making losses due to lower metal prices, leading to job losses.

The metal, used in construction, has doubled in value since the start of the year on the back of hopes that falling inventories signal a recovery in demand, and the mine’s re-opening is a boost to Zambia’s economic lifeblood.

Banda, who has strongly backed China’s involvement in Zambia’s economy, said NFC Africa was chosen to run Luanshya ahead of two other bidders — Luanshya Mineral Resources and London-listed Vedanta Resources Plc (VED.L).

“It is now with great pleasure that I announce the sale of the 85 percent shares to China Nonferrous Metals Mining, commonly known as NFCA,” Banda told the mine’s former workers.

“So you miners can go back to work again by the end of this month. We expect new jobs to be created when the development works are done at Mulyashi,” he said.

The LCM, which was a joint venture of the Bein Stein Resources Group (BSRG) and International Mineral Resources (IMR), also shut down the Chambishi Metals Plc, Zambia’s largest cobalt producer, and retrenched 1,700 miners.

The 85 percent stake now held by NFC Africa was previously owned by Enya Holdings, which owns BSGR and IMR.

CHINESE INFLUENCE

In what is a now familiar sight across Africa, China’s drive to secure minerals, oil, and a place for its workers and industries to thrive is converging with Zambian government plans to tap the potential of its copper mines.

China’s Nonferrous Metal Mining and Yunnan Copper Industry are about to commission the $300 million Chambishi copper smelter, to produce 150,000 million tonnes a year. Other Chinese companies have promised to invest even more in the sector.

Banda did not explain why Zambia did not take a 25 percent shares in Luanshya mine, as it had said last month.

The government had said it will increase its stakes in all copper mines to between 25 percent and 35 percent from about 15 percent, in order to exercise more influence on their running, and prevent closures that could result in job cuts.

Luanshya was to have been the test case in the scheme, which analysts and companies said may scare off investors already unnerved by the global downturn, and hurt plans to boost copper output in the southern African country.

“I want you to know that the drop in metal prices has hit us all hard in Zambia,” Banda said. “While our people here in Luanshya may have gone without food, your government has also been robbed of revenues in the form of taxes.”

Copper contributes 63 percent to Zambia’s foreign exchange.

Banda said NFC Africa, a subsidiary of China Non-ferrous Metals Corporation (CNMC), would reopen the Baluba copper mine and return it to pre-closure production levels of around 30,000 tonnes copper cathode per year.

(Writing by Shapi Shacinda and James Macharia)

By ANGELA CHISHIMBA

THE Chinese government says it will import more finished goods from Zambia to help the country overcome effects of the global financial crisis.

And the Chinese government has distanced itself from the US$53 million mobile clinic deal, saying it is a private company from that country that gave the Ministry of Health a business proposal which the Zambian government is free to take or not.

Visiting Chinese government’s special representative on African Affairs, Liu Guijin told journalists in Lusaka yesterday that his country imported more than it exported to Zambia.

“We wish to import more value-added and finished products from Zambia and other African countries so that they benefit from our assistance,” he said.

He said although copper prices have declined, the Chinese government is encouraging its people to expand their businesses in the mining sector in Zambia.

Mr Liu challenged African countries to produce more products that will meet the demand of the Chinese market.

He said the Chinese government is committed to giving zero tariffs to countries such as Zambia in its trade facilitation.

“We have opened up ourselves as a country and are willing to trade with African countries,” he said.
Mr Liu also said his country encourages Chinese investors to transfer technological skills to the local people.

He said Chinese investors are encouraged to employ as many local people as possible as a way of creating jobs.

Mr Liu said investors from his country have contributed positively to revenue, social and economic development and creation of jobs in Zambia.
And Chinese Embassy Charge D’Affaires Wang Ni said a Chinese company approached the Zambian Ministry of Health with a proposal of introducing mobile clinics.
He said this is in a bid to promote advanced equipment in the health sector.

Mr Wang, however, said it is up to the Zambian government to assess and decide whether or not mobile clinics are suitable for the country.

He said it is difficult for him to share the Chinese experience on mobile clinics because the two countries’ economies are different.

“In our case, we have thousands of hospitals which take a lot of resources to equip with drugs,” he said.

Mr Wang said his government has no hand in the deal.
And Mr Liu said his government is holding discussions with stakeholders on the best approach to make the Tanzania-Zambia railways economically viable.
“We are open to constructive ideas,” he said.

Meanwhile, the Chinese government has provided US$10 million towards the economic recovery of Zimbabwe.

Mr Liu said out of the money provided, US$5 million is towards reducing that country’s budgetary difficulties and the other towards humanitarian assistance.

He said China has encouraged its people to invest in Zimbabwe to help that country recover from its economic depression.
(daily-mail.co.zm)

The 330-kilovolt Lumwana substation in Zambia, was recently put into operation and has started to supply power to local copper mines, according to the State-owned Assets Supervision and Administration Commission (SASAC). It was contracted to be built by the Electric Power of Henan under the State Grid Corporation of China (SGCC).

Zambian President Rupiah Banda attended the ribbon-cutting ceremony and highly praised the project, recognizing the outstanding contribution SGCC has made to stimulate the local economy.

Zambia’s 330-kilovolt Lumwana substation is the electricity transmission and conversion project with the highest voltage class, and is the biggest contract signed by a Chinese enterprise for this type of project. It is also the power grid project with the highest voltage class in Zambia. SGCC’s Electric Power of Henan and China Henan International Cooperation Group Company jointly participated in the bidding to win this project, which had a total contract value of 22.22 million USD.

The enterprises under SGCC were responsible for the project’s design, installation and debugging, while Chinese manufacturers produced all the major equipment, effectively boosting Chinese power technology and equipment exports.

By People’s Daily Online

POLICE in Lusaka have arrested five suspects in connection with the murder of a Chinese national at his residence in Makeni area last Wednesday.

The robbers got away with a Mitsubishi Pajero and an undisclosed sum of foreign currency after killing him.

Police spokesperson, Bonnie Kapeso said police had recovered the stolen vehicle, one AK 47 rifle with 30 rounds of ammunition and an undisclosed amount of money.

Mr Kapeso said in a statement that the first three suspects from Kanyama Township were arrested on Saturday while the other two were arrested in Chawama on Sunday.

He said among the suspects was a former gardener of the Chinese who is alleged to be the mastermind of the murder.

“The deceased Chinese national was ambushed at his residence at about 23:30 hours when he was struck with an iron bar and left dead by criminals who also stole his Mitsubishi Pajero,” he said.

Mr Kapeso said the robbers later abandoned the vehicle because the immobiliser was activated.

The five suspects were detained in police custody and will appear in court soon.

Meanwhile, Inspector General of police, Francis Kabonde has said professionalism among police officers is critical in national development and human rights enhancement.

Mr Kabonde said in Lusaka yesterday that a country in which police officers respected the rights of suspects did not only improve the nation’s image but also attracted investors.

Speaking at Lilayi Police Training College when he officiated at the opening of the criminal investigation and training of trainers workshop, Mr Kabonde said no investor would open up businesses in a country whose police officers violated human rights.

The training programme for the police officers is sponsored by the United States (US) government and is aimed at improving investigation of gender-based crimes among the officers.

Mr Kabonde thanked the US government for sponsoring the course, saying the police officers would acquire effective and efficient investigative skills.

He appealed to the participants to apply the acquired knowledge to their investigative workplaces and share it with other officers who had no chance of participating.

Earlier, US ambassador to Zambia, Donald Booth said his government had taken the global lead on a wide ranging and ambitious programme designed to fight gender-based violence.

Mr Booth said the Zambian legal system should be strengthened to protect women and punish violators.

(ALLAFRICA)

Chinese textile experts are assessing the Zambia China Mulungushi Textile in Kabwe to ascertain the viability of the factory.

Defence Minister, George Mpombo, says the team, which was in the country about two weeks ago is assessing the production capacity of the textile plant.

Mr. Mpombo told ZNBC news in an interview that the experts also want to assess capital injection requirements.

The Minister said the technical report on the plant will be ready by mid next month.

Mr. Mpombo said officials from Zambia have also been invited to travel to China to discuss the matter.

Over one thousand workers lost their jobs after the Kabwe factory closed about two years ago.

(znbc.co.zm)

Lusaka - Zambia’s main opposition leader Michael Sata has strongly opposed a reported request by China to plant 2 million hectares of the jatropha plant in the southern African country for the production of biofuels. During a discussion programme on local radio Thursday, Sata said such a move would disadvantage Zambians, who are scrambling for land to grow food.

Earlier this week, Biofuels Assocation of Zambia (BAZ) head Tyson Chisambo was quoted as saying that China had made a request for 2 million hectares of land to produce the non-food crop, whose oil is used to produce biodiesel.

The deal would be the biggest lease of land in the country, which faces food shortages following severe flooding and drought during last year’s growing season.

The staple food - maize - has shot up in price, in part because of the global economic slowdown, which has weakened the local currency, the kwacha, rendering imported machinery more expensive.

Sata, a longtime critic of China’s involvement in Zambia, said the project would only benefit the Chinese labourers he expected would be brought in to work on the plantation.

Government officials argue that Chinese companies are the best-placed to invest in Africa in the current economic climate.

Chinese companies already own a number of copper mines in Zambia. China is also developing economic zones in the north-central Copperbelt and the capital Lusaka, where Chinese manufacturing, technology and trading companies will operate tax-free.

The government of Africa’s largest copper is looking to biodiesel, among other things, to solve the country’s biting energy shortages.

Mines rely on diesel-powered generators to keep critical equipment running during frequent power outages.

The reported Chinese project follows a bid by South Korean company Daewoo to obtain a 99-year lease on 1 million hectares of land on the Indian Ocean island of Madagascar to produce corn and palm oil.

That project, which had also caused controversy, has been called off by Madagascar’s new leadership.
(earthtimes.com)

By Muchena Zigomo

MIDRAND, South Africa, (Reuters) - China has asked Zambia to plant 2 million hectares of jatropha in the Southern African country for production of biofuels, the Biofuels Association of Zambia (BAZ) said on Tuesday.

“China has approached the Zambian government to plant 2 million hectares of jatropha in Zambia,” BAZ director Tyson Chisambo told Reuters on the sidelines of a biofuels conference.

Jatropha is a non-food crop whose oil can be used to produce biodiesel. It can be grown on semi-arid land and poses less of a threat to food production than other biofuel feedstocks such as grains and vegetable oils, supporters argue.

Chisambo said Zambia currently had only 10,000 hectares under jatropha, though his association was lobbying for an increase in the acreage.

“We have investors in biofuels from some other countries such as Australia, and there are companies supporting outgrower schemes in the country, so it is a work in progress,” he said.

Zambia is well-endowed with both surface and underground water, and its climate is suited to a wide range of crops including wheat, soya bean, cotton, jatropha and sugar cane.

Currently only 15 percent of the 25 million hectares of arable land are being used for food crop production, a Frost & Sullivan analysis said.

Chisambo told the conference earlier that Zambia’s government had approved an energy policy which incorporates renewable energy and biofuels.

“(The government) has also issued a statutory instrument legalising the issue of biofuels being traded as a petroleum product…and issued standards for both biodiesel and bioethanol,” he said.

“What is remaining is the incentive…and declaring the industry as a priority sector, and obviously deliverables such as blending ratios and timelines.”

He said possible incentives for the sector included putting in place duty free arrangements for machinery imports and funding incentives.

“On the funding incentives we are looking at things like interest free loans or long term payment plans to encourage investment,” he said. (Writing by Agnieszka Flak; editing by James Jukwey)

Zambia and China have engaged in talks to revive the defunct Mulungushi-China textiles in Kabwe.

Defence Minister George Mpombo revealed that a team of experts have been in the country carrying out technical assessment on the viability of the company.

Mr. Mpombo said the team of experts from China will be in the country for one month to capture and compile a comprehensive technical report which will be presented to both governments.

Mr. Mpombo disclosed this in an exclusive interview with ZANIS in Ezulwini, Swaziland.

He said the outcome of assessment which is expected before May would provide the way forward in terms of recapitalisation, investment and also strengthening the joint venture.

The Defence Minister said the two countries are committed to support and ensure that the company is competitive.

“The team of experts have so far captured a comprehensive factor of what we need to ensure the company is back into serious business and further strengthened. For us as government this is a significant development,” said Mr. Mpombo.

With the restoration of Mulungushi-China textiles about 2,500 jobs will be created and the out growers activities revamped.

“When the company closed down two years ago many jobs were lost and even the peasant farmers who were involved in growing cotton for the company lost their business. Now, once the joint venture is revived, about 2,500 jobs will be created thereby turning the economy of Kabwe around,” said Mr. Mpombo.

The Defence Minister pointed out that Zambia and China would like to ensure the company is utilised to its full capacity.

“For the last two years there has been serious hiccups in operations and a yawning capacity of that company. That company has the capacity to export and do miracles for the country,” said Mr. Mpombo.

Mulungushi-China closed down two years ago due to lack of capital injection paralysing economic activities in Kabwe.

Meanwhile, Mr. Mpombo commended the defence forces in the country for their professional conduct which he said has earned the country increased international recognition.

He said as a result of the high-quality conduct of the men and women in uniform, the United Nations has requested for an expanded deployment of Zambian peace keepers.

He has since advised the defence forces in the country to maintain the excellent conduct and to further be loyal to the government of the day.

“The defence and security wings should not divert from their core responsibility of maintaining peace and security in the country so that Zambians can do their businesses peacefully,” said Mr. Mpombo.

(lusakatimes.com)

By Times Reporter

Coal Power Plant PRESIDENT Rupiah Banda has implored Chinese investors in the energy sector to invest in the country saying Zambia’s investment climate is favourable.

Speaking when a group of Chinese investors called on him at State House yesterday, President Banda said that investing at this particular time was appropriate as Zambia was experiencing a power deficit.
“Your intended investment to our country is very welcome. We welcome your presence because we have a great shortage of power in our country as well as this region,” Mr Banda said.
He said that the potential to invest in the energy sector was abundant in the country saying there was abundant water, coal, uranium, sunshine as well as human resources among others.
Mr Banda said that it was imperative that the Chinese invested in Zambia particularly in the face of the global economic crisis and the falling commodity prices.
“Your investment will provide jobs to our people and revenue,” Mr Banda said.
Commerce, Trade and Industry Minister, Felix Mutati said that he held meetings with the Chinese investors enlightening them on possibilities of exploring investment opportunities in the nation.
With the falling copper prices and some mining investors intending to leave, he said that the Chinese had been informed on the best sectors for investment as well as investing in the mining sector.
And Zhonghui Guohua Industry Group Company Limited chairman Wang Yaohui said that his organisations was in Zambia to assess the investment climate.
He said that for many years, China and Zambia had cooperated in many economic sectors citing the construction of the Tanzania Zambia Railways Authority (Tazara) as one area of cooperation.
Mr Wang said that China would continue offering loans at low interest rates to developing countries and Zambia would continue benefiting from the gesture.
And State Grid Corporation of China chief economist Du Zhigang said that in the face of the economic crisis, it was imperative that Chinese investors invested in Zambia.
He said that toward the end of last year, his firm acquired prospecting licences in North–Western Province.
He said that his organisation, which was one of the largest electricity firms in the world, would continue assessing the investment climate in Zambia.
Chinese ambassador to Zambia Li Qiangmin  commended the Government for ensuring that the investment climate in the nation was favourable.
Meanwhile, two Chinese companies have shown interest in doing mineral exploration works in Mwinilunga district in North -Western Province.
Zhonghui Guohua Industry (Group) Limited and State Grid International Development made their intentions to invest in Mwinilunga during a meeting with Mines and Minerals Development Minister Maxwell Mwale and Mr Mutati in Lusaka yesterday.
Zhonghui Guohua Industry (Group) Limited was represented by its chairman Mr Wang while State Grid International Development was led by Mr Du who is also the chairman.
Mr Mwale said the Government was open to foreign investments and was happy to receive the two investors whom he assured of the support from the Government.
Mr Mwale said past exploration surveys indicated that North Western and Western provinces also had gas and petroleum.
He said the Government would this year advertise a block for would be developers in the petroleum industry in the country.
Mr Mutati said even if the country was not spared by the effects of the global economic recession, the Government had in this year’s national budget proposed major incentives that would boost the mining industry.
Director geological survey department at the Ministry of Mines and Minerals Development, Kennedy Liyungu said Mwinilunga has strong indication of mineralisation.

Times of Zambia

Zambian government is committed to ensure that the Ndola Stadium to be constructed in partnership with the Chinese company, Anhui Foreign Economic Company (AFEC), is completed on schedule.

According to sports report of Times of Zambia on Saturday, the Zambian government and AFEC on Friday signed a contract for the construction of the ultra - modern stadium in Ndola, in south Zambia.

Situmbeko Musokotwane, Zambia’s Minister of Finance and National Planning, said the project in Ndola would promote sport in the country, adding that the town was primed to become the centre of international sports activities, according to the daily.

The minister said it was good that after many years of discussions the project would finally take off, and that the project would promote the bi-lateral relationship between Zambia and China.

He called on investors to consider building hotels within the vicinity of the stadium so that visiting teams could be accommodated there.

Chinese Ambassador to Zambia Li Qiangmin said the stadium would help improve the sports standards in the country once completed.

Li said the stadium would provide an opportunity for the youth in Zambia to enjoy sports.

The Zambia Mines Safety Department has lifted the suspension on the Chinese Collum Coal Mine (CCCM) in Sinazongwe District in Southern Province in January this year.

Chief inspector for mines Billy Chewe said on Monday that Shaft Two and Shaft Three of the coalmine have been opened following compliance to the 34 safety rules they were given to fulfill.

CCCM marketing manager Lu Haiguan said that all the workers have returned for work and the two shafts have started producing 100 metric tones of coal per day.

He said the close of the mine affected the supply of coal to Konkola Copper Mine (KCM), Chilanga Cement (Lafarge), Amanita Zambia and many breweries across Zambia.

Lu noted that the re-opening of the mine would improve its coal supply to the customers that were affected as a result of the closure.

Last week, Chewe said Shaft One and Shaft Four would remain closed because the owners failed to comply with the safety regulations.

On Jan. 4, Chewe handed a letter to the CCCM management instructing them that operations at the mines have been suspended with immediate effect.

He said it was clear that the mine was no longer safe following the two accidents recorded in less than one month. He said the mine would only be reopened when the 34 safety conditions given to the management was met.

Some of the conditions included the employing of trained personnel such as the shift boss, to provide proof of appointment of a qualified mine manager for the shafts, and to provide proper support methods used in the tunnels.

(news.xinhuanet.com)

DAR ES SALAAM, Feb 10 (Reuters) - Tanzania and Zambia are considering privatising a railway they jointly own that hauls the bulk of Zambia’s copper exports to the coast, the leaders of the two African nations said on Tuesday.

The 39-year-old Tazara line was built with Chinese aid and once thrived as a monopoly under the two state-run economies.

But the 1,992 km (1,162 mile) railway has since suffered from poor management, lack of wagons and locomotives, unreliable timetables and problems with track maintenance.

At its peak, it could haul some 2.5 million tonnes of cargo a year, but it currently moves only about a quarter of that. Previous attempts to privatise it have faltered.

Tanzanian President Jakaya Kikwete told a joint news conference with his Zambian counterpart, Rupiah Banda, in Dar es Salaam that a council of ministers from both nations were studying the issue afresh. He gave no further details.

The two leaders said their governments also planned to rehabilitate a 1,710 km (1,060 mile) crude oil pipeline linking their countries, as well as a single point mooring unit at Dar es Salaam harbour used to receive crude oil tankers.

The jointly owned pipeline was commissioned in 1968 to handle 1.1 million tonnes of crude a year. But old equipment and financial difficulties mean it now carries only 600,000 tonnes. (Reporting by George Obulutsa; Editing by Louise Ireland and Daniel Wallis)

China-Zambia Friendship Farm. Photo: James Keeley, IIED.

The complex reality of China’s engagement with agriculture in Africa was explored during a nuanced presentation at LIDC. James Keeley, of the International Institute for Environment and Development (IIED), challenged certain assumptions about the motives for China’s involvement in African farming during the talk. The wide-ranging seminar on 27 November addressed issues including land acquisition for food security, agricultural innovation and the food crisis. The event, called China’s Engagement with Agriculture in Africa: Preliminary Findings from Zambia, was co-organised by LIDC and the Africa Asia Centre – a research initiative based at LIDC.

Food security and land acquisition
Keeley began by highlighting how Li Ruogu, CEO of China’s Export-Import Bank, has portrayed Africa as a “fertile land” of “untapped resources”. He then focused on Chinese demand for agri-food commodities and the opportunity this presents for African exports. He referred to Lester Brown’s seminal 1995 work Who Will Feed China? Wake-Up Call for a Small Planet and highlighted how China has just seven per cent of the world’s arable land, but 22 per cent of the world’s population. The loss of land is a major concern for Chinese policymakers, as well as the country’s overuse of fertiliser. Keeley cited figures showing how an average of 450 kgs of fertiliser are used per hectare in China compared to a worldwide average of 150 and only eight in Africa. Chinese soya bean imports have also risen dramatically from zero in 1996 to 40 per cent of the worldwide soya bean trade today. However, Keeley did warn against overplaying the Chinese food security argument as a motive for Chinese investment in Africa. He said China remains a net exporter of cereals and it has set itself limits to avoid importing more than five per cent of its grain needs in the future. Keeley added that products, apart from timber, from Chinese farms in Africa are marketed locally. He said: “The argument that China is setting up farms to feed itself does not hold water. A lot of the evidence is a bit scant and there is no rapid land grab going on”.

Rising food prices
Keeley also referred to Sun Zhengcai, the Chinese Minister of Agriculture, who told the world in June 2008 not to blame Chinese demand for food price rises. According to Keeley, the 40 per cent increase in food prices from mid-2007 to mid-2008 has been created by a combination of more important factors than Chinese demand, namely growing crops for biofuels, rising oil prices and speculation.

African exports and recommendations
Certain types of African exports have increased markedly in recent years, including African cotton, which now accounts for 45 per cent of China’s cotton imports. The export trade has been helped by the decision made at the China-Africa Summit in 2006 to offer a zero tariff on 452 items entering China from the least developed countries in the world.

(http://zambian-economist.blogspot.com)