DURING a working dinner on Monday in Lusaka, Minister of Mines and Minerals Development Paul Kabuswe said the New Dawn administration will welcome investments in mining that have positive social impact, unlike mere monetary figures.
This is because in the contemporary commercial world, there is an emphasis on environmental, social, and governance facets in most deals.
“We don’t just want to mention these figures [like] ‘US$20 billion of investment in the mining sector is coming to Zambia’. I want that US$20 billion, but I also want the social impact of that kind of investment,” Mr Kabuswe shared.
In our view, the minister was spot on in that while investments in mining have economic benefits such as foreign exchange and employment creation, they also bring with them negative and positive social impacts on communities.
Zambia being dependent on copper mining for foreign exchange, which accounts for about 70 percent of the total earnings, investments in mining over the years have had a fair share of adverse impacts on communities and the environment.
Some of the negative impacts of mining have been surface and underground water pollution, air pollution, land degradation, and displacement of people.
It is, therefore, important that as President Hakainde Hichilema’s administration is creating a conducive environment for investors in the mining sector, it also wants to see that the investments have a positive social impact.
Before the wind of privatisation swept through Zambia in the early 1990s, virtually all the mines were run by Government through Zambia Consolidated Copper Mines (ZCCM).
During that time, Government took upon itself the responsibility of providing non-core business services to the people. ZCCM provided social services such as water, recreational facilities, including health and educational amenities in surrounding communities.
After privatisation, new mine owners took over provision of social services to host communities as part of corporate social responsibility (CSR).
Along the way, however, most new mine owners abandoned their CSR programmes and stopped ploughing back into communities in which they operated.
Educational and health facilities, including play parks, which ZCCM used to take care of, could no longer see maintenance or construction of new facilities as the new investors were preoccupied with making profits.
Even sponsorship of football clubs in mining towns became a thing of the past.
Also, some new investors stopped minding the pollution they were causing to the environment, resulting in displacement of farming communities.
Against this backdrop, we commend Government for its stance of ensuring that investors coming into our mining sector see to it that their operations have a positive social impact, especially on host communities.
This is the only way we are going to have a sustainable mining industry which is free from pollution and with no displacement of communities.
We want mine owners that will plough back into society by not only investing in expansion projects but also building schools, health facilities, and improving water supply and sanitation services in communities.
Government must be applauded for ensuring that going forward, investments in mining should have a positive social impact than merely pumping funds into ramping up production.
Social impact must for mining investments
DURING a working dinner on Monday in Lusaka, Minister of Mines and Minerals Development Paul Kabuswe said the New Dawn administration will welcome investments in mining that have positive social impact, unlike mere monetary figures.
This is because in the contemporary commercial world, there is an emphasis on environmental, social, and governance facets in most deals.
“We don’t just want to mention these figures [like] ‘US$20 billion of investment in the mining sector is coming to Zambia’. I want that US$20 billion, but I also want the social impact of that kind of investment,” Mr Kabuswe shared.
In our view, the minister was spot on in that while investments in mining have economic benefits such as foreign exchange and employment creation, they also bring with them negative and positive social impacts on communities.
Zambia being dependent on copper mining for foreign exchange, which accounts for about 70 percent of the total earnings, investments in mining over the years have had a fair share of adverse impacts on communities and the environment.
Some of the negative impacts of mining have been surface and underground water pollution, air pollution, land degradation, and displacement of people.
It is, therefore, important that as President Hakainde Hichilema’s administration is creating a conducive environment for investors in the mining sector, it also wants to see that the investments have a positive social impact.
Before the wind of privatisation swept through Zambia in the early 1990s, virtually all the mines were run by Government through Zambia Consolidated Copper Mines (ZCCM).
During that time, Government took upon itself the responsibility of providing non-core business services to the people. ZCCM provided social services such as water, recreational facilities, including health and educational amenities in surrounding communities.
After privatisation, new mine owners took over provision of social services to host communities as part of corporate social responsibility (CSR).
Along the way, however, most new mine owners abandoned their CSR programmes and stopped ploughing back into communities in which they operated.
Educational and health facilities, including play parks, which ZCCM used to take care of, could no longer see maintenance or construction of new facilities as the new investors were preoccupied with making profits.
Even sponsorship of football clubs in mining towns became a thing of the past.
Also, some new investors stopped minding the pollution they were causing to the environment, resulting in displacement of farming communities.
Against this backdrop, we commend Government for its stance of ensuring that investors coming into our mining sector see to it that their operations have a positive social impact, especially on host communities.
This is the only way we are going to have a sustainable mining industry which is free from pollution and with no displacement of communities.
We want mine owners that will plough back into society by not only investing in expansion projects but also building schools, health facilities, and improving water supply and sanitation services in communities.
Government must be applauded for ensuring that going forward, investments in mining should have a positive social impact than merely pumping funds into ramping up production.