Zambia+Minerals


 * It Is Highly Likely China Will Continue Mining Investments Despite Zambia Government Revoking Chinese Mining Licenses **

It is highly likely China will continue mining investments despite the Zambia government revoking Chinese mining licenses. Zambia is a mineral rich country, containing copper, cobalt, coal, gold, iron ore, lead, manganese, silver, uranium and zinc. The China Nonferrous Metals Company and China Nonferrous Metal Mining Group have 8 strategic mineral investments totaling USD 5,021,000,000. There are 35 million tons of copper reserves in the country and according to the World Bank Zambia holds 6 percent of the global resource. As of September 2013, Zambia’s economy is set to grow by 8.1 percent in the next few years due to political stability, sound economic policies and their commitment to infrastructure development. In February 2013 Zambia revoked the mining licenses to Chinese corporations for mining violations; however China understands the mineral potential and will likely correct their actions for continued access.
 * Executive Summary: **


 * Discussion: **

Zambia's mineral resources include: copper, cobalt, coal, gold, iron ore, lead, manganese, silver, uranium and zinc and since the 1930s the mining industry has been the backbone of the economy. Of Zambia's total exports, copper accounts for 50 percent however this is risky because mining products are prone to volume and price changes which may lead to an unstable economy. Zambia is still a developing nation and largely depends on foreign trade and because of this they have to compete with other developing nations,especially those that are mineral wealthy.



Source Reliability: High Analytic Confidence: High