Zambia
A WEALTH OF MINERAL RESOURCES
DEMOGRAPHICS AND GEOGRAPHIC SETTING
Zambia is a land-locked independent republic situated in south-central Africa, to the east of Angola, south of Democratic Republic of Congo, and west of Tanzania.
Zambia forms part of the Southern African region. Zambia has a total area of approximately 752,614km2 and the population is approximately 10 million people. The capital city of Zambia is Lusaka and the official language is English.
POLITICAL AND FINANCIAL STATUS
Zambia, previously known as Northern Rhodesia, gained independence in 1964 after 40 years of United Kingdom rule. Zambia is a multi-party democracy and has a market-based economy in which the public sector is active.
In 2002, Zambia’s GDP (Purchasing Power Parity) was estimated to be US$8.9 billion, and per capita income was US$890. Real growth for Zambia has been estimated at 4.2%, with an underlying inflation rate on consumer prices of 21%. The GDP composition by sector in Zambia is estimated at 22% agriculture, 26% industry and 52% services. Despite progress in privatization and budgetary reform, Zambia’s economic growth remains below the 5% to 7% required to reduce poverty significantly.
MINING INDUSTRY AND TENURE
Copper and cobalt are the key commodities produced in Zambia, with the Zambian copper-belt remaining the focus of mining and development activities. The copper-belt, which is situated between Zambia and the DRC is one of the world’s greatest metallogenic provinces. Outside of the copper belt, little exploration has been carried out, apart from regional base metal, gold and diamond prospecting.
In line with its stated Mining Policy, the Government of Zambia has enacted new legislation, the Mines and Minerals Act (1995). This Act greatly simplifies licensing procedures, places minimum reasonable constraints on prospecting and mining activities, and creates a very favourable investment environment. The Government policy is not to participate in exploration or other mining activities or any shareholding other than regulatory and promotional role.
