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Zambia's Mining IndustryThanks to the abundance of mineral deposits in Zambia, investors have continued to flock to the country in spite of the pandemic-fueled economic downturn in many parts of the world. By deeming gold a critical mineral, the government is actively expanding Zambia’s mining industry by mandating that Zambia Consolidated Copper Mines Investment Holdings PLC (ZCCM-IH), a mining consortium, “drive the gold national agenda.”

Productive Mining Partnerships

Zambia’s government is a major investor in ZCCM-IH. Array Metals and ZCCM-IH have formed a partnership through Consolidated Gold Company Zambia (CGCZ). Array Metals determined that the venture will immediately generate local employment for 300 people. Mining is expected to commence sometime in June 2020 and will lead to another increase in employment. The establishment of new and competing mining firms will be beneficial for Zambia by encouraging a rise in gold production, increasing the national GDP and creating new opportunities for local employment.

Potential Profits from Gold Mining

With an approximation of 16,500 pounds of gold (around $400 million in value) within gold ore in Mumbwa, Zambia, continued investments in the Republic of Zambia are indicative of an economically auspicious future for the country. The gold mine is situated in Central Province, Zambia, and had been shut down for years before exploratory studies revealed the previously undiscovered resources within.

Roughly $2.5 million in capital has been devoted to the beginning portion of the project alone, with CGCZ aiming for an initial yield of 3 metric tons of gold (about $150 million in value).

How Zambia is Improving the Local Gold Mining Industry

According to CGCZ’s CEO Faisal Keer, “CGCZ is partnering with various small-scale gold miners in the country by providing mining technical expertise, and providing access to earthmoving machinery and gold processing lines to kick-start and boost their gold production.”

Since the majority of local miners mine through the process of gold panning, one focus of another partnership between ZCCM-IH and Karma Mining Services is to improve Zambia’s local gold mining efficiency. While CGCZ is only operating in the Mumbwa and Rufunsa districts of Zambia, there are more than 60 sites for gold mining. Local miners have also partnered with other foreign investors.

Although there is no official documentation, some have profited off illegally mining and smuggling gold out of Zambia. The government’s newfound focus on Zambia’s local gold mining has the perk of bringing lawfulness to a previously unformalized industry. In that spirit, the “government has given artisanal miners gold panning certificates to legalize their alluvial or riverbed gold mining activities.”

By supplying licensed miners with machinery, equipment, and knowledge about the industry through ZCCM-IH and CGCZ, Zambians are encouraged to participate in Zambia’s local gold mining. The formalizing of the gold mining industry will benefit more than Zambia, for it will enable licensed miners and locals to “reap the benefits of the assets under Zambian soil.”

Carlos Williams
Photo: Flickr

Deforestation and Poverty
Deforestation throughout the world has been increasing over the past decades. Forests contribute to 90 percent of the livelihood of those that live in extreme poverty. Once people cut down and remove these resources, it takes years to replace them, which puts people deeper into poverty. Deforestation and poverty connect because of what the forest can provide for people living in poverty.

Reasons for Deforestation

There are several reasons that deforestation is so much a part of developing nations. One of the most prominent reasons is logging or cutting down trees for processing. While logging does provide temporary relief from poverty once loggers cut down the trees, it takes years for them to grow back.

Indonesia has the worst problem with illegal logging with 80 percent of its logging exports being illegal. Agriculture is necessary for a country to become self-sufficient and rely on itself to feed its people. Hence, to clear land for crops, farmers cut down large sections of forests. Indonesia also has the worst problem with clearing forest for agriculture; the country states that it is necessary to make way for the trees for palm oil, one of its major exports, in order to reduce poverty.

In Brazil, clearing forests to make way for grazing livestock is the reason for deforestation. Brazil is a top beef exporter having exported over $5 billion worth of beef in 2018 and beef is a significant contributor to its economy.

The Benefits and Harm of Deforestation

The three countries that have the most deforestation are Brazil, Peru and Bolivia. These countries all have access to the Amazon rainforest and they use its resources to help alleviate the strain of poverty. Deforestation has devastated all three of these countries, as each has cut down millions of acres of rainforest.

Since 1978, Brazilian loggers, cattle rangers and farmers have cut down 289,000 square miles of rainforest. One of Brazil’s top crops is soybeans that farmers use to feed its growing cattle population. Massive sections of forest require cutting to make way for both soybean production and cattle and this impacts the indigenous people of Brazil the most. Their entire livelihood is dependent on the forest and when the trees disappear, they suffer extreme poverty.

Peru has recently increased its efforts to control deforestation due to mining. Gold is a large part of the economy of Peru along with logging. These efforts have worked for the people of Peru who were able to cut their poverty rate from 48.5 percent to 25.8 percent in less than 10 years. However, experts believe that this relief, while significant, could only be temporary because the rate of deforestation will have a profound impact on climate change that will, in turn, harm the forests and economy of the country.

The GDP per capita of Bolivia is currently at $2559.51. This makes it one of the poorest countries in the western hemisphere. To help the poor people of the country, the government has doubled the amount of deforestation that occurs in the country to make way for cattle, agriculture and infrastructure.

With the increase of deforestation, the benefits can seem like relief for those that are deeply immersed in poverty. While these countries’ removal of whole forests can help those living in poor conditions, the help is only temporary and in the long run can harm their well being as much as help. Deforestation and poverty are linked and to save the forests, it is essential to help those living in and around the forests.

Samuel Bostwick
Photo: Flickr

Tigui CamaraTigui Camara, a former model, is one of the youngest mining executives in Africa and the only woman in Guinea with her own mining company. Given that mining in West Africa is predominately run by middle-aged men, the magnitude of Camara’s success is remarkable.

Camara’s career began on the runway when she was only 14 years old — and soon after escalated into the business world. While living in Morocco, Camara was able to graduate high school early and earn a college degree in business management. Several years later, Camara moved to the U.S. and was hired by a modeling agency in New York.

During her time in the modeling field, Camara made friends with jewelers who had companies in Africa and was inspired to take action. Camara remembers thinking, “If he could do it, I could do it. He is not even from Africa or Guinea, but he has been successful at doing this. Being a native, why can’t I also be successful?”

Camara began saving in order to open her own mining company and she is now the Chairman and CEO of Camara Gold and Mining Network and the CEO of Tigui Mining Group. Her companies acquire and develop mining assets with a focus on gold, diamond and associated minerals.

However, Camara faced setbacks when she hired a business partner who was embezzling the company’s funds for the first year. She also set up her business during a time of political turmoil in Guinea. The country had just undergone a political revolt and 2009 was marked by violent protests and civil unrest.

To make matters worse, Guinea was hit by the Ebola crisis, which began in December 2013 and continued for around two years. It shut down the economy and businesses were hit hard. As a result, Camara stopped all activity until it was safe to return to work.

Finally in recent months, Camara has been able to stabilize the business with proper funding and investors. She claims, “While infrastructure and electricity shortages have created a challenging business environment in the mineral-rich nation, the government is taking steps to improve its industries and encourage foreign investment.”

This provides the U.S. a unique opportunity to purchase gold, diamond and other mineral materials from a deserving business leader. Tigui Camara had to overcome many obstacles in order to get where she is today. Her background in the fashion industry hindered her ability to succeed as an entrepreneur at first but now she has a well-established name and is respected in the mining industry in West Africa.

Megan Hadley

Sources: How We Made it in Africa, Tigui Mining Group, Black Enterprise

gold-mining

Artisanal gold-mining is nothing new to Zimbabwe; in fact, it’s a practice that is centuries old. What is especially interesting about the practice today, though, is how innovative Zimbabweans are using mining as a means of supporting their families in difficult economic times.

The correlation between economic strain and accelerated entry into the mining sector is strong. Zimbabwe has undergone a decade and a half of economic turmoil that began in 2000 with the collapse of its agricultural economy when the government forced out large farms only to replace them with much smaller ones run by inexperienced staff.

As a result, swaths of the population were forced to seek alternative employment, such as small-scale mining. By 2018, it is estimated that so many Zimbabweans will have adopted artisanal gold-mining that Zimbabwe’s gold output will double.

As an industry, gold-mining has the power to support thousands of hard-working Zimbabweans. According to the South African Institute of International Affairs, which in May 2014 published a comprehensive policy briefing on the topic, “artisanal gold-mining has emerged as one of the few means of poverty alleviation for poverty-stricken people in mineral-rich communities.”

Despite this, however, the government of Zimbabwe has yet to support the industry – in fact, it has criminalized small-scale mining altogether.

Government opposition to mining is a result of concerns that mining leads to environmental degradation and political instability. To some extent, these concerns are legitimate – mining relies not only on the use of dangerous chemicals but can also lead to water pollution and landscape erosion, as well as result in community tensions when workers of differing ethnicities and ideologies flood into mining towns.

Traditionally, Zimbabwe has enforced the criminalization of artisanal mining, arresting those who are caught engaging in the practice. However, because artisanal miners move between gold mines very quickly, law enforcement alone has not managed to end non-commercial mining in Zimbabwe.

The government of Zimbabwe would be smart to regulate rather than criminalize artisanal mining, as it benefits the country as a whole. Increased gold output over the past several years has earned Zimbabwe a reputation for being mineral-rich, and in turn, has led to increased international investment.

Mining gives individuals who would otherwise face unemployment an income, allowing them to participate in local economies, perhaps put down roots and in some cases, even undertake their own entrepreneurial ventures.

Lacking the violence with which it is often associated, supporting mining would be a no-brainer for Zimbabwe. Regulation (including environmental regulation) as a means of “formalizing” the mining industry could be incredibly effective in reducing its social costs and in turn, make the industry even more productive. Zimbabweans have found a way to ward off poverty – their government should listen.

— Elise L. Riley

Sources: Eldris, Info Please
Photo: The Zimbabwe Mail