Zambia develops measures to ease impact of global economic crunch

Special Report:Global Financial Crisis

LUSAKA, Feb. 8 (Chinese media) -- Zambian President Rupiah

Banda said the government is developing measures to mitigate the adverse impact

of the global credit crunch on the mining industry, Zambia News and Information

Services (ZANIS) reported on Sunday.

The president said the measures are intended to

address concerns raised by the mining companies in order to reduce job loses and

develop a mechanism to salvage mining operations.

He said although the economic meltdown has adversely

affected the economy, particularly the mining sector, the government will remain

committed to getting the country onto a firm economic base.

Banda said he is happy with the confidence from some

investors who are willing to invest in the mining sector in Zambia despite the

prevailing global economic problems.

He observed that despite the fall in metal prices,

investors have not been deferred their investment plans in the country, ZANIS

said.

He said the long term view for the sector is that the

world's demand for the metals, mainly driven by India and China, is likely to

rebound and bring back mining operations to normal.

The President said it is government's policy to

ensure that the business environment remains attractive for further investment

in the country.

He said in the medium and long terms, Zambia will

continue to attract investors in the mining sector due to its conducive

investment atmosphere.

He noted that Zambia still offers some of the best

incentives in the mining industry such as exemption from custom and exercise

duty on all mining equipment and machinery imported for mining purposes, ZANIS

said.

Banda further expressed confidence that the congress

will provide a framework for business people from southern Africa and other

regions to discuss and share ideas on the future of the mining industry on the

continent in the wake of falling metal prices on the world market.

He urged Southern African states and the continent at

large to consider coming up with a common approach to issues of taxation and

environment which are key to sustainable development of the mining sector,

according to ZANIS.

He said the southern African region has much to gain

from the development of their mining economies through employment, taxation and

other benefits, adding that the mining sector will only be sustained through

enhanced cooperation.