Zambia’s mining sector faces significant upheaval due to proposed government reforms that threaten investors’ rights, according to the Chamber of Mines. The planned establishment of a state-owned enterprise intends to take control of at least 30% of future production from critical minerals like copper. The Chamber criticises the government for not sufficiently consulting with mining firms, risking setbacks to investment efforts that have boosted the economy since 2021.

Zambia’s economy heavily relies on copper, contributing approximately 70% to its export revenues. The government aims to boost copper production from less than 700,000 tonnes last year to three million tonnes by the next decade. These ambitious targets will require substantial investment in the mining sector, which could be jeopardised by new governance laws that purportedly allow regulators excessive discretionary powers, risking corruption.

The proposed reforms in Zambia’s mining sector represent a significant challenge for investors, with the Chamber of Mines expressing concern over possible corruption and a lack of meaningful government consultation. These developments could undermine past efforts to attract investment and drastically impact the country’s mining industry and economic growth.

Original Source: africanminingmarket.com

The post Zambia’s Proposed Mining Reforms Threaten Investor Rights and Growth first appeared on Nigerian Mining News.

Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, has advocated for stronger trade relations between Nigeria and the UAE, particularly in the mining sector. During a meeting with UAE Ambassador Salem Shaeed Al Shamsi, Alake highlighted the historical relationship spanning over 50 years and the potential for expanding trade in solid minerals. Alake pointed out that while gold trade exists between the two countries, much of it is illicit. He proposed collaborating to combat illegal gold trading and to devise a regulatory framework that would legitimise this trade to benefit both nations. He also noted Nigeria’s vast mineral wealth and the UAE’s role as a central hub in mineral commerce, emphasising the mutual advantages of a closer partnership. Ambassador Al Shamsi reaffirmed the UAE’s commitment to enhancing its longstanding relations with Nigeria, referring to recent developments such as lifting visa restrictions and signing a Memorandum of Understanding (MOU). He announced an upcoming Nigeria-UAE economic forum in Nigeria with participation from numerous major UAE companies to boost Foreign Direct Investments (FDI). Both nations agreed to form a technical committee aimed at tackling illegal mineral trade and promoting legitimate business practices.

The mining sector is crucial for both Nigeria and the UAE, with Nigeria possessing various valuable minerals and the UAE serving as a key trading hub. Over the last fifty years, the two countries have developed a significant bilateral relationship that can be further enhanced through strategic collaboration in legitimate mineral trade. Alake’s focus on combating illegal activities in the gold market and fostering legitimate trade underlines the importance of a structured regulatory approach.

The meeting between Dr. Alake and Ambassador Al Shamsi marks a pivotal step in solidifying Nigeria-UAE relations, especially in the mining sector. The proposed collaboration aims to legalise gold trading and promote investment opportunities, indicating a bright future for trade between the two nations.

Original Source: freedomonline.com.ng

The post Nigeria and UAE Look to Strengthen Trade in Mining Sector first appeared on Nigerian Mining News.