Mineral Rights and Sustainable Development in the Copper Mining Industry on Zambia: A Case Study of Lumwana and Kansanshi Mines
Abstract
Sustainable development from mining activities must recognize the finite nature of minerals and hence the need for the creation of linkages where the benefits from mining continue to be enjoyed long after the natural resources have been depleted. In order to facilitate these linkages, the economic gains from the mining industry should be equitably distributed among all the stakeholders in any project area. Studies show that in Zambia, the economic benefits from the mining projects are not equitably distributed among the stakeholders and that the problem stems from the lack of involvement of all stakeholders in the process of granting mineral exploitation rights to would be investors. So far there is little known about whether indeed there is equitable distribution of economic wealth among stakeholders in the mining projects or whether all the stakeholders are involved in the procedure for granting mineral exploitation rights. The main objective of this research was to evaluate whether the method of granting mineral exploitation rights influences the equitable distribution of economic benefits among the stakeholders from mining projects. A study was carried at Lumwana and Kansanshi Mines of the North-Western Province in Zambia. Specifically the study evaluated: the extent to which the current way of granting mineral exploitation rights affects the equitable distribution of economic benefits among the stakeholders from a mining project; whether a grant of mineral exploitation rights through negotiations by the stakeholders before the commencement of a mining project would be capable of bringing about the equitable distribution of economic benefits from a mining project to all stakeholders; and whether there are other factors which may have impinged on the equitable distribution of economic benefits from the mining projects other than the method of granting mineral exploitation rights. A case study approach was adopted and a qualitative method was employed. The respondents were selected purposively. Six focus group discussions, each consisting of ten respondents were conducted and interview guides were used to collect data from key informants. Data was analysed thematically. The study revealed that the current procedure for granting mineral exploitation does not allow for equitable distribution of economic benefits. The study also revealed that the equitable distribution of economic benefits was achievable through negotiations with all stakeholders before granting mining licences. Furthermore, the study revealed that there are no other factors that affect the equitable distribution of economic benefits. The study concluded by recommending that the procedure for grant of mineral exploitation rights should be revised to include all stakeholders in a negotiation before mining licence is granted. Secondly, that there should be a plan beforehand on how the revenue from mining projects will be expended depending on the needs of all stakeholders involved.
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