The Future Minerals Forum’s Ministerial Roundtable, posited as the largest global gathering of Ministers responsible for minerals, has brought together key stakeholders to debate metals' future. CNBC Africa’s Kenneth Igbomor spoke with Zambia’s Minister of Mines and Mineral Development, Paul Kabuswe.
The Future Minerals Forum’s Ministerial Roundtable, posited as the largest global gathering of Ministers responsible for minerals, has brought together key stakeholders to debate metals' future. CNBC Africa’s Kenneth Igbomor spoke with Zambia’s Minister of Mines and Mineral Development, Paul Kabuswe. The Future Minerals Forum’s Ministerial Roundtable, posited as the largest global gathering of Ministers responsible for minerals, has brought together key stakeholders to debate the future minerals' future. Looking at the Future Minerals Forum, I would like to speak to the significance of events like this to drive home the outcomes that we need. I would like to speak to why such gatherings are critical. This is very important. As Zambia, we have been attending the FMF for the past two or three years now. It is to show that we believe that we have to collaborate because there are various reasons why, for example, the African continent has not moved forward in terms of actualizing the value that the mineral wealth that we are endowed with, actualizing that value to our people. Because like was said in the forum, one comment was saying we must remember that wherever these minerals are, they are people and people must benefit out of these minerals. So how do they benefit if you are operating in isolation? So probably when we collaborate like this, we put ideas together, we look at how best we can work together to actualize value. And one of the things that I said even back in the forum itself is to say, why do we have well-endowed continent yet with a lot of impoverished people? We need to actually tally the value that this continent has with what actually the people that live in this continent or how the people that live in this continent are living. So basically, this is very important for us to have very, very frank conversations, you know, where we speak to each other and be truthful about each other. Look at the past. What has happened in the past? Zambia, for example, has been mining for the past 100 years. But is the community living like it's been mining for all this long? The answer is no. So we want now with the leadership that is in place now of President Akainde Ichlema, who has said we have to make sure that the value or the kind of wealth that we have as a nation tallies with the livelihood of our people. So how do we do this? We can't do it in isolation, you know, because the world is now a global village. So what do we do? We collaborate with these countries. But as we are collaborating, President Ichlema has given the four pillars that we are operating on. Number one, we have to have strong partnerships. Number two, we have to have capital. But affordable capital. Then we have to embrace new technologies. Because for mining to move at a pace that we would want it, we have to embrace new technologies. But also technology must not be, you know, expensive for the country. It must be modern, but also very affordable. Then the fourth thing that we are looking at is now downstream investment, which is beneficiation. We wouldn't want any longer to start exporting soil, as we call it. We want to value add beyond copper anodes, copper cathodes. We want to go into cables. We want to go into, you know, EV industry. As a matter of fact, Zambia and DRRC have collaborated on setting up, you know, battery manufacturing plants so that we participate in the value that the green energy transition is trying to bring to the world. So basically, these are some of the pillars that the leadership of President Ichlema has actually set in motion. And as a nation, we are basing all our engagements on those four pillars. My next question, it takes me to my next question, which is the area of policy. First, starting from national policy, then even looking at the regional policy for Zambia and then talk about the more continental policy. Because Africa is one, we need to speak with one voice if we're looking at the future of the critical minerals. I'd like you to speak to that, the role of policy, what Zambia is doing in terms of policy and how we need to work together as a continent. So, Ken, at the back of our minds, as Zambia, we do understand one aspect, that mining is number one capital intensive and it's a long-term investment. So what we have vowed ourselves is to create an economy or an environment in the local space that is predictable, that is stable, that doesn't change policies like you change shoes. We want to make sure that the policy environment is very, very stable and predictable so that you as an investor, when you come to our country, as you're investing your millions, your billions, you know that there will be a return on investment. We want to change policy environment because that frightens investment. You know, we want to make sure that there is predictability. When you come today, we don't want in two years we change so that, you know, it affects now your investment programs and plans and that affects profitability to you. But also it will affect how much value we get from that investment that comes to our country. So that is on the local scale. And then policy-wise, in terms of dealing with other countries, we are emphasizing win-win situation. You know, we have to make sure there is a win for our country, there is a win for those that are coming to work with us. There is also a win to the common person that is, you know, walking on the street. So those are some of the things that we are looking at policy-wise. So Zambia is very predictable. And one thing, Ken, that is very, very important for the investor is to invest in an environment that is peaceful. Zambia has been peaceful for the past, you know, years that we've been independent. We have changed president. This is the seventh president now that we have and relatively peaceful. So meaning that those that are coming to our country are coming to an environment that enjoys peace, which is very critical to protection of any investment. And Zambia historically has appreciated this aspect. And that is why, through our first and founding president, we have been dealing with regional integration, trying to create peace among, you know, regional players so that these countries we are working with are peaceful. Because, in fact, Zambia is landlocked, although we call it land-linked now. So it needs neighbors first who are peaceful. Then that makes our work easier, because whatever we are doing in terms of export, we have no choice but to pass through different countries. And I'm sure you heard recently our president pushing the agenda of the Lobito Corridor, which is a passage, you know, as we, you know, work towards our three million tons of copper, because that has been our vision, to transition from the current around 750,000 metric tons to three million tons, meaning we'll be pulling quite a lot of material. And that requires that the infrastructure is ready, one of which should be rail, one of which should be roads. And that is why we are busy trying to create infrastructure that will actually make it easy for us to export when we want to export the materials that we're dealing with.
Theme: Unlocking Africa's mineral wealth through collaboration and policy stability
The Future Minerals Forum’s Ministerial Roundtable recently brought together key stakeholders to discuss the future of minerals globally. CNBC Africa’s Kenneth Igbomor interviewed Zambia’s Minister of Mines and Mineral Development, Paul Kabuswe, shedding light on the critical importance of collaboration and policy stability in unlocking Africa's vast mineral wealth. Minister Kabuswe emphasized the need for African nations to work together to ensure that the value of their abundant mineral resources benefits the continent's people. He highlighted the vision set by Zambia's President Akainde Ichlema, focusing on four key pillars - strong partnerships, affordable capital, embracing new technologies, and downstream investment. These pillars aim to drive the country towards value addition, moving beyond exporting raw materials to adding value through beneficiation and participation in industries like the electric vehicle sector. The Minister also underlined the significance of stable and predictable policies to attract and retain investments for the long term. Zambia's commitment to maintaining a peaceful environment and fostering regional integration to ensure smooth trade routes further illustrates the nation's strategic approach to leveraging its mineral wealth for sustainable development.
"We want to change policy environment because that frightens investment. We want to make sure that there is predictability."
['Africa Minerals', 'Mining Industry', 'Economic Development', 'Collaboration', 'Policy Stability']