Zambia is about to be geologically mapped – in its entirety – inorder or the exploration o copper and other minerals to reachits ull potential. Better geological data will assist in attractingmore – and better – investments as investors will be more will-ing to part with their money i they can base their explorationdecisions on certainty rather than uncertainty.Only 58 percent o Zambia has been geologically mapped, butthe government has now engaged the World Bank to organiseaerial surveys o the remaining 42 percent. Minister o Minesand Mineral Development Maxwell Mwale said unexploredareas were ound south o the Copperbelt and in Central,Western, Northwestern and Luapula Provinces (imes 21).“It is the view o the ministry that the expanding economies o China, India, South America and Arica will continue to re-quire mineral resources or development. Tereore the demandor mineral will continue to increase. It is imperative that detailed inormation packages onminerals be developed in response to this demand pattern,” Mwale said.Te surveys are expected to produce inormation on additional reserves o copper along withother minerals, oil and gas – as well as ground water resources.Zambia has recently seen a diversication in the mining industry which has resulted inexploration activities being extended to almost all areas o Zambia – away rom the originalCopperbelt. New projects include rident Mine in Solwezi in North-Western Province, Mu-tanga Mine Uranium Project and Arican Energy Resources’ uranium projects in SouthernProvince, Fishtie Copper Project in Mkushi in Central Province and extensive metals explora-tion by the world’s largest mining house, BHP Billiton, in several provinces.

Week 8, Volume 2, Issue 8, 25 February 2011

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Sing on a copper mine is good –nding it is beer!

Finding more copper minesEII: Not too bad?Banda’s rst reshue o 2011QuotesMulongoti redTe PF-UPND Pact is dead?Mopani hits back Parliament is back - and busy!Advert: Discover your best coloursBanda turns 74White lions in Zambia11223456677

One has a standpoint until one adopts an-other – but sometimes it would have beenbetter to stand on the rst point. Tis wascertainly the case or Zambia Weekly lastweek. Up until 8:00 hours Friday morning,this Editor’s note read “shame on the PF-UPND pact” or not honouring the trusto many Zambians. At that time it lookedlike the pact was spending most o its timebickering over petty issues rather thanproviding a viable alternative to the MMDgovernment. Ten, on my way to the oce,I read the Post which revealed that the PF had accepted the UPND’s proposal orpower sharing. Stop press! Tis was mo-mentous news with huge implications orthis year’s elections. Ater all, we have spentthe past year watching the pact’s dillydally-ing in declaring its presidential candidate.Last week’s editor’s note was duly re-writ-ten to reect the changing political climate.When it was sent out around 9:00 hours itread “good on the pact” or living up to thetrust o many Zambians. My elation overhaving caught the news train beore it letthe station came to a crashing halt when Iread the government press later in the day.Ten it became embarrassingly apparentthat the UPND never had made any pro-posal whatsoever on power sharing with thePF. Te whole thing was hoaxed by the PF (see page 4). Disgrace! – mostly on ZambiaWeekly or having run with hal a story.Tis is not up to our usual standard! Tisweek’s Editor’s note thereore gives vent tosome o last week’s rustration: Shame onthe PF or not honouring the trust o many Zambians!

Editor’s noteIn this issue

The best of the Zambian media

Zambia’s rst Extractive Industries ransparency Initiative (EII) report has revealed a netdiscrepancy o 12.31 billion kwacha and an absolute discrepancy o 247 billion kwacha be-tween what mining companies declared having paid in taxes and other statutory paymentsand what government agencies reported having received in 2008 (Daily Mail/imes 23).Te report, which was produced by the Zambian branch o PricewaterhouseCoopers(PwC), pointed out that the discrepancies primarily were caused by problems o docu-mentation, exchange rates and lack o supporting documents: “Te discrepancy does notrepresent missing payments rom extractive companies but rather discrepancies which wehave been unable to investigate urther and conclude thereon due to limited supportingdocumentation and limited time rame o the independent reconciliation,” said PwC Zam-bia director Nitesh Patel (Post 24).Te Zambia EII Council thereore recommended that legislation should be put in placeto make the auditing process easier, as the two parties tended to classiy some documents ascondential and not or public consumption (imes 24).Te report ound that companies had paid 1,737.15 billion kwacha while government hadreceived 1,724.85 billion kwacha - and Minister o Mines and Minerals DevelopmentMaxwell Mwale directed the council to look into the “missing” 12.31 billion kwacha.Te report covered companies which paid royalties o more than 200 million kwacha in2008, including Albidon, Chambishi Metals, Chibuluma Mine, Luanshya Copper Mines,Kagem Mining, Kansanshi Mining, Konkola Copper Mines, Laarge Cement, LumwanaMining, Maamba Collieries, Mopani Copper Mines and Ndola Lime.Te global EII aims to improve transparency and accountability in the extractives sector.

EITI:

Not too bad?

News

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Banda Quotes

I remember I was a member of parlia-ment and vice-president when the latepresident Levy Mwanawasa said wemust introduce windfall tax. We all saidyes and didn’t even debate it.

President Banda on changing his opin-ion on the windall tax (imes 19).

“”

Daid ersus Goliat?

I the 2,000 minority shareholders, who don’t want tosell their Celtel shares to Airtel, really want to hold onto them – they must go to court. Ater Zain, whichtrades as Celtel, was bought by Airtel, the latter gavea mandatory ofer to the minority shareholders sit-ting on 21.1 percent o Zain’s shares. Airtel ended upwith a total o 96.3 percent o the shares, which put itabove the 90 percent-threshold or voluntary delist-ing. However, the Securities and Exchange Commis-sion (SEC) has made it clear that Celtel’s delisting(which was rejected by the Lusaka Stock Exchange) should be separated rom Airtel’s manda-tory ofer. SEC stated that it allowed the notice o compulsory acquisition to aford share-holders opportunity to challenge Airtel’s intention to take over their stake. In other words, i the minority shareholders want a higher price or their shares than the 710 kwacha ofered by Airtel, they must go to court – beore 22 March 2011 – as the law afords 90 days rom thedate o the mandatory ofer, which was made on 22 December 2010 (imes/Post 22).

Zambia Weekly produces (write, edit, design and photograph) alltypes of publications: from brochures to posters, from pressreleases to newsletters, from technical reports to books.Contact Camilla Hebo Buus if you or your company needs assistance!(cell 0977 461 877, cabuus@zambia-weekly.com)

Much more than news!

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Banda’s rst re-sue of 2011

President Banda has promoted Deputy Minister o Mines and Minerals Development Gabri-el Namulambe to Minister o Works and Supply (imes/Daily Mail 24). He takes over romMike Mulongoti (see page 3). Namulambe is being replaced by Luapula Province permanentsecretary Jazzman Chikwakwa who has been put in charge o large-scale mining. Chikwakwawas nominated or MP with immediate efect.

I have directed the police never to shootat anyone because we don’t want acountry where we kill each other. Weneed to talk to each other. Let the policeuse rubber bullets where necessary,because I don’t want any blood to beshed.

President Banda ater one o his daugh-ters read about him in the press andcame across a word she did not know – bloodshed – in connection with therecent unrest in Mongu (Daily Mail 19).

“”

I don’t think he [Chiluba] rigged an

con. So thy r dibrty tryingto ch importnc to th word “drib

-bling”. Dribbling is just like football… Inany case if he really has those skills they

r ribung to him of rigging c

ons, h ws supporng Mr St in thst cons [2006] nd Mr St ost.So why dos it bcom so signicntwhn h sys it now? H is  poicin.

He knows that people like to hear himthe way he spoke before.

President Banda on ormer PresidentChiluba’s statement that he would reviveall the international and local dribblingskills to ensure victory or PresidentBanda (Daily Mail/Post 24).

“”

Jail for MMD candidate’s son in Mufumbwe

Kajilo Muzungu, the son o Mulondwe Muzungu, MMD’s losing candidate in the disputedparliamentary by-election in Muumbwe, has been sentenced to 10 years imprisonment withhard labour or manslaughter (Post 23). On 30 April 2010, the morning ater the election,Kajilo drove through a crowd celebrating the victory o Elliot Kamondo (UPND) – and killedthree juveniles aged 8, 9 and 14 and injured two others. High Court Judge Isaac Chali saidthere were no extenuating circumstances that could explain the incident other than Kajilo’sown actions. He ound that Kajilo had dazzled the crowd by icking the lights on his vehicleas he drove – at 70 kilometres per hour – rom one lane to another on the Mutanda-ChavumaRoad. He said it was evident rom Kajilo’s actions that he knew death or grievous harm wouldresult rom ploughing into the crowd. In mitigation Kajilo said he regretted the incidentand showed it by providing logistics during all the three unerals. Te judge said that despiteKajilo’s moving mitigation, he was compelled to treat him severely: “A lesson has to be taughtthat violence does not pay,” Chali said. Te result o the Muumbwe by-election was nulliedby the court in December 2010 due to violence. Property was damaged, people were injured, apoliceman was abducted and churches were burnt. Te opposition has long accused the gov-ernment o shielding Kajilo as he was not arrested immediately ater the incident.

[W]hat is happening in the Middle East,is what we went through in 1991. (...)

Th dmocrcy tht w r prcsinghr is wht thy r ghng for. Thos

who are talking and taking advantageof young Zambians, who may not beaware of where we are coming from,must understand that to refer to Egyptis wrong.

President Banda (imes 24).

“”

We would like you to help us nd the bestquotes each week. I you read a good quoteplease email it to cabuus@zambia-weekly.com.

Poics

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Kavindele in brief

Finance Bank has sued ormer Vice-President Enock Kavin-dele or having ailed to settle a 30 million kwacha temporary overdrat. Te overdrat, which was supposed to have beencleared by 30 April 2009, has in the meantime grown to 48million kwacha as at 13 September 2010. Te bank’s directoro credit, Charity Shitumbanuma, said the bank had sent sev-eral reminders to Kavindele. Now it wants the court to issuean order o deliver or the possession o leasehold property number 3831/M on Leopards Hills Road, which was placedas an equitable mortgage (Daily Mail/imes 22).

Finance Bank sues Kavindele

Former vice-president Enoch Kavindele has had the license o North West Rail (NWR) company restored (Post 24). In May 2008, then Minister o Communications, now Minister o Education and MMD spokesperson, Dora Siliya, announcedthe termination, alleging the company was “not serious” aboutdeveloping a railway rom Chingola to Solwezi. Enoch Kavin-dele, who is NWR’s chairman, recently declared his candida-ture or party vice-presidency in MMD – although the MMDis still to decide whether or not to lit the suspension o thisposition. Kavindele, who served as both party and republicanvice-president under late president Mwanawasa, has recently been re-admitted to MMD ater contesting the KabompoWest parliamentary seat in Northwestern Province as an inde-pendent in 2006. Kavindele is also planning other projects orthe province, including mining in cooperation with UK Cluf Mining, an ethanol plant with Brazilian input and a university o science and technology. “Te projects are worth 1.4 billionUS dollars and are expected to create thousands o jobs, saidKavindele.

Full steam ahead in Northwestern Province!

Minister o Works and Supply and MMD chairman o elections,Mike Mulongoti, has been red.Mulongoti recently reiterated his intention to run or MMD party vice-president – a position which currently is suspended – and hesealed his ate when he, in the Post on 19 February, commented onrumours that President Rupiah Banda is supporting the candidacy o current republican vice-president George Kunda: “[Y]ou expectsome gratitude rom those people” with reerence to Banda, whom –Mulongoti said – he had helped to bring back into active politics in2006, when Banda was appointed republican vice-president by latePresident Mwanawasa.Last week, Mulongoti also queried Vice-President George Kunda’sclaim that the latter was the best candidate, arguing the choice shouldbe made based on perormance in the MMD rather than in govern-ment (Post 17).Later on 19 February, at a media brieng in connection with theMMD’s National Executive Committee’s meeting, Banda explainedhe had dismissed Mulongoti – and revoked his nomination as MP– because o his continued attacks on himsel, Kunda and other mem-bers o the party. “[H]e was daring me,” Banda said (Sunday Post).Banda also denied most allegations: He denied having been aidedpolitically by Mulongoti – arguing he had worked with Mwanawasaquietly in the run-up to the latter’s victory in 2006 (Post 21). Hedenied having a preerred candidate or the vice-presidency – arguinghe had not acted against the rest o the nine or so vice-presidentialcandidates. And he denied the allegations o “well-placed MMDsources” (Post 22) that he had been advised by ormer President Fred-erick Chiluba to re Mulongoti (Post/Daily Mail 24). Mulongoti hasbeen dismissed beore – by Chiluba – in 2000.MMD’s National Executive Committee subsequently suspendedMulongoti or three months and recommended him or expulsionrom the party at the party convention on 5-7 April (Sunday Mail).Mulongoti said he was awaiting the ocial letter rom the party –and that his suspension was not nal.

Mulongo red

Te National Restoration Party (NA-REP) has grand ambitions or Zambia– i elected into oce in this year’s elec-tions. Te relatively new party intends tocreate one million jobs within ve yearsand 100 percent electricity connectivity within seven years. Te party’s detailedprogramme ocuses on poverty reductionthrough agricultural development withemphasis on bio-uels, trade and technol-ogy advancement. At its rst nationalconvention, President Elias Chipimo ju-nior – who also announced his intention to run or president this year– said Zambians must vote or a youthul leadership. “[]he biggestdragon that we have yet to slay is that o mediocre and sel-servingnational leadership that lacks any sound vision to take Zambia tonew heights and address the long-standing poverty that is evident allaround us,” he said (imes 18 and Post 19).

A new treat to MMD?

47,086 out o 79,030 candidates who sat or grade 12exams obtained ull certicate in 2010 – compared to33,417 out o 55,117 in 2009. Ministry o Educationpermanent secretary James Mulungushi attributed theincrease in number o students to increased classroomspace. Out o the 47,086, 28,566 were boys while 18,520were girls. Te number o candidates involved in exami-nation malpractices increased rom 89 in 2009 to 243in 2010 as a result o increased monitoring visits (Daily Mail/imes 19 and Sunday Post).