Zambia is a poor country in Africa that is rich in natural resources. It is rich in copper and the worldwide decline in copper prices plunged it into abject poverty in the 1970s. It was only with the privatization of the copper mines in 2000 that its economic conditions began to improve as there were investments in plant rehabilitation, expansion, exploration and higher prices consequently. The recent global financial crisis has again made cooper prices plunge and Zambia is among the worst affected. Copper brings in over 60% of Zambia’s foreign exchange earnings. Nonetheless, its Luanshya Copper mines are scheduled to restart production in the last week of May, and the responsibility of running the mine has been given to the Chinese firm NFC Africa or China Nonferrous Metals Mining. NFCA has acquired 85% shares in the Zambian copper mine. Copper mining had been stopped and the mine shut in the aftermath of the current financial crisis that led to declining prices and losses subsequently.

This has only increased the Chinese influence in the world of metals with the prospects of rising prices, as an economic recovery is likely in the future. Luanshya’s units, Chambishi Metals Plc and Baluba have both been shut due to losses, and he result was job losses as well. Copper is used for construction and the prospect of an increase in its price will lead to an economic recovery for Zambia. Once the mines begin to full-scale production, developmental work for expansion will also be undertaken, creating multiple jobs for the locals.

This fits in perfectly with China’s endeavor to secure its position in the metals, minerals and oil sectors. China Nonferrous Metal Mining and Yunnan Copper Industry will be commissioning the Chambishi Copper smelter and take production to 150,000 million tons annually. Besides NFCA, other Chinese companies are also willing to invest in the copper mining sector. This will lead to improved conditions for the local Zambian population.

Source : China Africa