EMERALD MINING IN ZAMBIA:吀he embezzlement of our wealth
FOR a country that has so much wealth in terms of minerals and gem stones, Zambia
" ! $ ted much from the sector. To the contrary, the individuals involved in the sector seem to have gained more than they let on.
In looking at the story of emerald mining in Zambia, we would begin in this fashion: In Sir Frederick Lugard's book, “The Dual Mandate in British Tropical Africa” published in 1922, he suggested that the colonial masters came with a dual-mandate, to colonise Africa and help develop it through its own resources and the other to use those resources to meet the ever growing demands abroad,
The late Professor Ali Mazrui explains ( Internubian.com): “We are no longer under any physical, social or political colonial master, but there is an economic master that continues to master our wealth. It begs the question whether we really understand the immense wealth that the ‘master’ continues to rob us of.”
Zambia is known to produce several types of gemstones, including amethyst, beryl, and garnets, but emeralds are Zambia’s most economically important gemstone export. Copperbelt Minister Bowman Lusambo once lamented the fact that the emerald mines of Nkana/ Kitwe have left no trace of development in the area where the mining takes place. He called on the famous Kagem Mines to plough back into the community from where their lucrative business begins.
They get the wealth for their gain and glory while the inhabitants remain in extreme underdevelopment and economic anguish. Is the claim by Lord Lugard a reality that will continue to hold us back and perpetuate the colonial tendencies that were a devil of depression and a demon of domination?
When are we going to gain from this resource that rates as one of the highest and best selling gemstones on the world market? Is there a cartel that hinders the “gold” to get to our reserves?
Are we being robbed or we are robbing ourselves because of the lingering colonial mentality that tells us that the land is ours, but not the mineral wealth? Painful it is!
Let us look at this mineral to really appreciate its worth and show its potential for the much needed revenue that we continue to yearn for. The Geology.com (2016) claims that:
…For over 5 000 years, emeralds have been one of the most desirable and valuable coloured gemstones. Ancient civilisations in Africa, Asia, and South America independently discovered emeralds and made them their gemstone of highest esteem.
Today emeralds, together with ruby and sapphire, form the "big three" of coloured stones. The "big three" generate more economic activity than all other coloured stones combined.
In 2011, the value of emeralds imported into the United States exceeded the value of rubies and sapphires combined. The value of imported emeralds also exceeded the value of all coloured stones outside of the "big three" combined.
The www.enwikipeadia (2016) says that:
…It is interesting that this great mineral is mined in quantities and at a quality that leaves us bewildered at the great loss that holds us to our economic hardships.
Emeralds in antiquity have been mined in Egypt since 1500 BCE, and India, and Austria since at least the 14th century.
Colombia is by far the world's largest producer of emeralds, constituting 50–95 percent of the world production, with the number depending on the year, source and grade.
Emerald production in Colombia has increased drastically in the last decade, increasing by 78 percent from 2000 to 2010. The three main emerald mining areas in Colombia are Muzo, Coscuez, and Chivor. Rare "trapiche" emeralds are found in Colombia, distinguished by ray-like spokes of dark impurities.
Zambia is the world's second biggest producer, with its Kafubu River area deposits (Kagem Mines) about 45 km southwest of Kitwe responsible for 20 percent of the world's production of gem quality stones in 2004. In the first half of 2011 the Kagem Mines produced 3.74 tons of emeralds.
If you visited Zambia’s Kagem Mine located in the southern part of the Copperbelt Province, in the emerald mining area south of Kitwe the first thing that would catch your attention is its scale, there is such a large scale of activity that speaks the reality of the immense wealth that we treat as though it mattered not. Despite this fact our country continues to bemoan the lack of real benefit for our economy.
Why don’t we reap from this wealth? We are the second largest producer, but one of the highly indebted and poor countries of the globe. Why don’t we partake of the profits of our “green gold?” We must get a fair share, but how can this be?
Chola Mukanga an economist and founder of the Zambian Economist which provides independent economic perspectives on Zambia's progress towards meaningful development for her people in an article on www.zambian-economist.com asserts that:
… A number of explanations
have been offered on why Zambia continues to fail to reap the benefits of this critical sector. The Banda administration attributed it to the laziness of ordinary Zambians which has manifested itself in a lack of entrepreneurial zeal. Former Mines Minister Maxell Mwale argued that Zambians have failed to develop emerald mines despite government doing all it can to help.
According to Mr Mwale, rather than using the credit facilities Government had apparently put in place, many Zambians increasingly resort to selling their gemstone licences to foreign buyers.
It is apparently common practice for Zambians to obtain mining Licences and giving them to foreigners to undertake operations at a fee. Interestingly though Mr Mwale does not believe that poor licencing regime is the issue. Instead it all has to do with people's laziness.
That conclusion is of course misguided. It is true that reselling of licences happens all the time but it is merely a symptom not the disease. Providing licences to Zambians will continue to lose government revenues because the structural incentives for individual Zambians to develop gemstone mines are fairly weak.
It is clearly cheaper and more immediately rewarding for many Zambians to allow foreign production (by charging the "fee") rather than develop the mine themselves. To successfully develop these mines it requires access to finance and established supply chains. Foreign investors usually have all these things in abundance and crucially they are able to harness the economies of scale that are associated with pooling licences together. It’s therefore no surprise that they increasingly buy out locals!
Charles Mukanga further suggest that:
“…To ensure that revenue is maximised, it would be necessary that processing is undertaken in Zambia. At present nearly all exported stones are processed in India. The reason for that is that India has implemented very stringent laws and regulations that encourage the importation of rough gemstones and export of finished gemstones, and discourage export of rough gemstones.”
Zambia would need to review is taxation framework to make it more punitive to export rough stones. However, in doing that care may be needed to minimise the potential for diverting the trade further underground. A key part of that effort is to encourage the formation of a gemstone association to provide a central focus for Government consultation.
If we will understand the wealth that lies under our soil and how much of it passes through our very nose in broad daylight we would wake up and work to benefit from its profits. But why don’t we benefit as much? Maybe an illegal consortium exists between and among the looters and the very people in the corridors of power? Maybe the business benefits the very top-brass who cannot be touched by any power or law? Can someone answer these questions before we die of thirst and hunger for a response that must meet our cry? Please help before our eyes drip blood and the blood dries up in our veins and we end in an economic and social death so excruciating.
Growing up on the Copperbelt, we saw many foreign nationals gain from these emeralds when we were toddlers. They came with a stench of poverty, but sooner than later graduated onto tycoons and their stench turned to an aroma of wealth. Surely our emeralds can kill the reek of poverty that exists if we do the right thing.
We do not want to rid our communities of these our brothers, but one thing that must be done is to equalise the benefits that come out of this great business.
How can we be host to such great undertakings and yet remain poor and in abject misery. It is not possible that this mineral can benefit only a few while many live below the poverty datum line.
The areas that surround and host this gemstone are nowhere near the infrastructure and great edifice that could have been if the right thing was done. The looting leaves us licking for good while the few lick the soup out of our land.
To propose a deliberate investigation and an involvement in this sector is to begin a fight that will gain us more benefit than cost. We must forgo personal interest for collective prosperity. Unless we come to terms with the reality of the gemstones that can benefit us, we will continue to behave as though there was no wealth being embezzled by a few.
It makes my heart bleed when I hear the song of the great emeralds of Kitwe. Cry mother Zambia and arise to the reality of the embezzlement!