Zambia - Basic economic report (Vol. 2 of 5) : Annex 1 : mining sector review

Report No. 1586b-ZA Zambia-A Basic Economic Report FILE COPY Annex 1: Mining Sector Review October 14, 1977 Country Programs Department Eastern Africa Regional Office FOR OFFICIAL USE ONLY Document of the World Bank This document has a-restricted distribution and may be used by recipients only in the performance of their official dcties. Its contents may not otherwise be disclosed without-World Bank authorization.  CURRENCY EQUIVALENTS Prior to February 1973 February 1973 to July 1976 US$1 = K 0.7143 US$1 = K 0.643 K I = US$1.40 K I = US$1.554 Since July 1976 SDR I = K 0.9218 K I = SDR1.0848 US$1 = K 0.8000 (July-December 1976 average) K I = US$1.2499 (July-December 1976 average) US$1 = K 0.7952 (Jan.-June 1977 average) K I = US$1.2576 (Janw-June 1977 average) ABBREVIATIONS CIPEC - Intergovernmental Council of Cooper Exporting Countries CSO - Central Statistics Office LME - London Metal Exchange MINDECO - Mining Development Corporation NCCM4 - Nchanga Consolidated Copper Mines Limited RCM - Roan Consolidated Mines Limited SNDP - Second National Development Plan (1972-76) TAZARA - Tanzania-Zambia Railway TL III - Tailings Leach Plant Stage III Project (at NCCM's Chingola Division) TNDP - Third National Development Plan (1978-82) ZIMCO - Zambia Industrial and Mining Corporation WEIGHTS AND MEASURES tons = metric tons I metric ton 1,000 kilograms I metric toa = 0.984 long ton 1 metric ton 1.102 short ton FISCAL YEAR Government - January 1 to December 31 Mining Companies - April 1 to March 31  FOR OFFICIAL USE ONLY ZAM!BIA BASIC ECONOMIC REPORT Annex 1: Mining Sector Review Table of Contents Page No. List of Figures and Tables ...... ...................... i Glossary of Terms ... .................................. ii 1. Summr and Conclusions .. ................... I II. Orzanization of the Mining Industry. 6 A. Major Operating Entities. 6 B. The Role of Government in Mining Operations ........... ... 7 III. Sectoral Policies and Recent Performance 8 A. The Second National Development Plan ( ',N1P ..... . . .. .. .. . . .. . . . B. Sect:oral.Performance in the SNDP Period . 9 :V. Current Operating Conditions ........* ...... 13 A. Reserves ...................*...........* 14 B. Production Capacities ..... .............. 16 C. Production costs ..... ................... 19 V. Determinants of Future Production ..28 A. Reserves .............. ...... a...29 B. Production Capacities .31 C. Ptogduct