First Quantum Minerals Limited (FQML) has committed to procure 44% of its requirements, equivalent to US$1.6 billion, from Zambian-owned companies, its Head of Infrastructure Jed Goldstein has disclosed.
Goldstein also committed to FQML formalizing its partnership with the Zambia Association of Manufacturers (ZAM) to enhance local manufacturers’ capacity to supply the mining industry to a global standard. This is expected to increase local sourcing.
However, the Association of Mining Contractors and Suppliers contends that mining companies use ‘standards and capacity’ as an excuse to exclude locals from participating in huge or lucrative supply contracts and has challenged the mines to invest in the local supply industry to get it up to their desired standards.
Local companies have long rued their exclusion from the mining value chain, limiting their participation, hence, the value accruing to them and, indirectly, the economy. The government has been working towards local content in mining policy and law to assure increased benefits to Zambians.
Goldstein admitted that while the majority of FQML’s procurement is from companies registered in Zambia, a significant portion comes from companies with minority Zambian ownership.
“Zambia is an incredibly large copper producer, and with copper being a critical mineral of the future there should be an impactful and meaningful value chain associated with copper here in Zambia,” he stated.
He said FQML intended to turn Zambia into a mineral processing hub further contributing to the economy and ensuring that suppliers can meet the demands of Zambia’s mines. These efforts, he said, align with the country’s three million tons copper production target.
In a recent interview the Association of Mining Contractors and Suppliers president, Coster Mwaba, was emphatic about the inclusion of local companies in the mining supply and value chain.
“We do not want pronouncements of investments not benefiting local Zambians, we are very strong on that one. There’s no issue of skill, there’s no issue of capacity, that we have gone past. It’s time to try Zambians. We’ve been engaging with the Ministry of Mines, local content has been a cry of local contractors and suppliers.”
Goldstein was speaking at the ZAM gala and awards ceremony at the weekend in Lusaka. FQML participated in ZAM’s Zambia Manufacturing Month.
