Copper Colonialism in Zambia

8/13/2019 Copper Colonialism in Zambia

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Copper Colonialism

Vedanta KCM and the copper

loot of Zambia

January 2014


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Authors: Samarendra Das and Miriam Rose, Foil [email protected] !!!.foilvedanta.or"

#ith than$s to all those !ho facilitated or trip to Zambia, and !ho !e connected and shared!ith drin" or time.

%his report and or trip !ere resorced b& or o!n fnd'raisin" efforts, incldin" an (ndian

ban)et evenin" and a sponsored son". #e are deepl& "ratefl to all those !ho contribtedsmall and lar"er amonts to ma$e this !or$ possible.

Front cover pictures:Vedanta KCM*s +chan"a mine, Chin"ola. copper trc$ leaves Zambia over the Victoria Falls -rid"e.ollted !ater in Shimlala villa"e, Chin"ola.Vedanta Chairman nil "ar!al and Zambian resident Michael Sata meet in /ondon.

Contents

Introduction: Copper from Cape to Cairo p.3

Chapter 1:ho are !edanta "C#$ p.%

Chapter 2: Copper & the elephant in the room p.10 %he copper elephant Ma$in" sense of copper material flo!s 0pa)e profit %he problem !ith rent see$in"

%he real price of copper Material flo!s !here does the copper "o2

Chapter 3: !edanta's perception mana(ement in )am*ia p.1+

Chapter 4: ,he truth a*out !edanta in )am*ia p.21 #ater polltion ir polltion #or$ers* ri"hts

Chapter -: ho ons )am*ia$ p.2%

Shareholder interests

+eo'colonialism and the 3K Department for (nternational Development

Chapter %: /s and civil society & parasites of the poor$ p.30 (n !hose interest2 #hose politics2 olitical inflence !arnin" abot ri"ht !in" criti)es of aid

Conclusion and recommendations p.34

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mailto:[email protected]:[email protected]


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Copper from Cape to Cairo

The question as to who, and what, is responsible for African underdevelopment can beanswered at two levels. Firstly, the answer is that the operation of the imperialist systembears major responsibility for African economic retardation by draining African wealth and bymaking it impossible to develop more rapidly the resources of the continent. Secondly, onehas to deal with those who manipulated the system and those who are either agents orunwitting accomplices of the said system. The capitalists of estern !urope were the oneswho actively e"tended their e"ploitation from inside !urope to cover the whole of Africa. #nrecent times, they were joined, and to some e"tent replaced, by the capitalists from the$nited States% and for many years now even the workers of those metropolitan countrieshave benefited from the e"ploitation and underdevelopment of Africa.

#alter Rodne&, 1564, *7o! 8rope 3nderdeveloped frica*.

Zambia has been e9portin" Copper for almost acentr&. (n 1::5 the -ritish Soth frican

Compan& ;-SC< !as "iven a Ro&al Charter,modelled on the 8ast (ndia Compan&, to e9ploitthe mineral !ealth of Sothern frica for -ritain.%he board of -SC inclded Sir Cecil Rhodes,fonder of the De -eers Minin" Compan&, andpioneer colonialist after !hom Sothern and+orthern Rhodesia ;Zimbab!e and Zambia

-SC administered +orthern Rhodesia !ithparamilitar& forces ntil 154>, !hen it !asreplaced !ith direct -ritish rle, bt contined too!n Zambia*s rail!a&s ntil 15>6, and theirmineral ri"hts ntil 15?> !hen Zambia achievedindependence.

Massive copper deposits !ere discovered in+orthern Zambia in the 154*s and 8ropeanprospectors and indstrialists flooded into the

contr&. /i$e toda&*s mltinational companies,the& bro"ht !ith them administrators,technicians and s$illed laborers, bt the life'threatenin" =ob of minin" !as reserved forfricans, !ho sffered appallin" conditions, bthad to earn an income in order to pa& the *htta9* imposed thro"hot colonial rle. -SC hasbeen called a *parasite* on +orthern Rhodesia,pa&in" ver& lo! ro&alt& rates ;!hich !ere eventa9 dedctable< and allo!in" companies to pa&ta9es !here their head)arters !ere based ;mostl& /ondon< rather than in Zambia.1

1 A.D. Roberts, 1982, 'Notes towards a financial history of copper mining in Northern Rhodesia'. Canadian Journal ofAfrican Studies. ol 1!, no 2, 1982" #$%.

A

Caption:Cecil RhodesB Cape'Cairo rail!a&

pro=ect. Fonder of the De -eers Minin"Compan&, one of the first diamond companies,Rhodes !as also the o!ner of the -ritishSoth frica Compan&, !hich carved otRhodesia for itself. 7e !anted to paint themap -ritishE red, and once famosl& declaredBall of these stars... these vast !orlds thatremain ot of reach. (f ( cold, ( !old anne9other planets.10 December 1892 edition of Punch.


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(n the 15A*s and >*s a risin" tide of frican nationalism led to stri$es and protests in themines, and the formation of the +orthern Rhodesian frican Con"ress the first frican politicalpart& in Zambia ' in 15>:. s a response to these prisin"s, the 15 blic 0rder ct !asinstated b& the -ritish colonial rle, to maintain their administrative and economic po!er,ensrin" that e9tractive colonialism !as not interrpted. %he ct ;similar to Section 1>> in(ndia< prevented meetin"s, protests, and political fla"s or niforms, criminalisin" all forms ofresistance. %he blic 0rder ct remains in Zambian la! toda&, and crrent resident Michael

Sata has been !idel& criticised for brea$in" an historical *selective se* polic&, and sin" thecolonial la! e9tensivel& to prevent an& dissentin" "atherin"s or protests.

Zambia achieved independence in 15?>, and =oined the (MF in 15?. First resident KennethKanda nationalised the minin" companies and briefl& oversa! an economic boom as hi"hcopper prices bro"ht prosperit& to the nation. %he (nter"overnmental Concil of Copper89portin" Contries ;C(8C< !as created in /sa$a in 15?6 !ith ma=or copper prodcin"nations Zaire, er and Chile as a copper cartel to increase national revenes from minin". -tC(8C did not scceed, copper prices fell dramaticall& in the late 156*s, and Zambia*ssanctions on !hite'rled Rhodesia ;Zimbab!e< endan"ered their trade rotes for coppere9ports to Soth frican ports.

(n the 15:*s Kanda !as forced to as$ for international aid, and in 15:A the first officialStrctral d=stment ro"ramme !as imposed b& the #orld -an$ and (MF, leadin" to foodriots, stdent demonstrations and civil nrest, as "overnment spendin" !as slashed, pricecontrols !ere removed and povert& increased. Kanda*s "overnment re=ected the #orld-an$G(MF*s pro"ramme briefl& in 15:6, and sa! economic "ro!th retrn, bt !ere forced toremove all protective measres a"ain onl& a &ear later nder pressre from the aris Clb ;a"rop of rich contr& leaders< !ho !ere !ithholdin" bi'lateral aid4.

Since then Zambia has nder"one one of the most far reachin" liberalisation and privatisationpro"rammes in frica, and simltaneosl& has become poorer and poorer. %oda&, in a contr&

half the siHe of 8rope, covered in fertile soils and forests, !ith a poplation of onl& 1A million,life e9pectanc& is onl& A6, and 4 percent of the poplation claim ?:.?6 percent of the totalincomeA. core plan$ of the #orld -an$ and (MF*s conditions !as the brea$ p andprivatisation of national minin" compan& ZCCM. %he& facilitated secret Development"reements bet!een the Zambian Iovernment and minin" con"lomerates, !hich redcedro&alt& rates, environmental re"lations, electricit& prices, corporate ta9 and !or$ers* !a"e and!elfare pac$a"es. %he a"reements are "aranteed for bet!een 1 and 4 &ears, and can onl&be chan"ed via a process a$in to chan"in" the national constittion.

Cecil Rhodes* brid"e over the Victoria Falls"or"e contines to flfil its intended prpose, as

trc$s and trains carr&in" copper stream overthe border to Zimbab!e, headin" for Sothfrican ports. From there it is alle"edl& mainl&e9ported to S!itHerland, bt onl& a fraction of itarrives at its declared destination, s""estin"that the ma=orit& is sold on the hi"h seas toChina the !orld*s bi""est importer of themetal. ;More on this in later sections

copper trc$ crosses the Victoria Falls brid"e intoZimbab!e.


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%he le"ac& of e9tractive colonialism and recent far reachin" neo'liberal economic policies;!hich can be clearl& seen as neo'colonialism.J and 44.AJ respectivel&6

, mostl& affectin" &oth, and prostittion isthe onl& !a& of earnin" for man& !ives of =obless miners in the re"ion:.

%his report ses the best available sorces from !ithin and ot'!ith the indstr& to inform and!iden the debate arond copper minin" in Zambia, focsin" on the activities of Kon$ola CopperMines ;KCM


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ho are !edanta"C#$

Kon$ola Copper Mines ;KCM< !as the lar"est and most copper rich asset sold off as part of thebrea$ p of national minin" compan& ZCCM. (t !as ori"inall& sold to n"lo merican plc for 5million in 44, !ho have been in Zambia since the 15As, and had been mana"in" the mine

for ZCCM prior to official privatisation. (n 41 the& had secred a :1 million loan from the 3KDepartment for (nternational Development ;Df(D< to refrbish the +$ana smelter ;be""in")estions abot !h& the 3K*s aid bd"et !as bein" sed for private "ain14. %he deal !as facilitated b& Clifford Chance andStandard Chartered -an$1A;one of the main boo$rnners and lenders to Vedanta Resorcesreedom of 7nformation Re?, hristian Aid and A:-A.

1+ @hadia -harife, 2+11,,amba-u&a $e#s, 'opper in /ambia" harity for m


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to prchase Zambia Copper (nvestments* 4:.>J share1>, !hich the& e9ercised in +ovember4 ;a &ear after their initial prchaseJ monopol& the& crrentl& hold onKCM, !hile the Zambian "overnment ' via ZCCM'(7 ;their minin" investment !in" million in from the sale of 41.>J of ZCCM'(7*s shares alone. (n response, ZC(*s AAJ French shareholders ;"roped into a compan& calledSicovam S< called the deal *the most otra"eos and scandalos ever seen in frica fordecades*.16

(n addition to all this Vedanta !as allo!ed to carr& for!ard all losses incrred *p to andincldin" A1 December 4A* before it even o!ned shares in KCM. %hese amonted to?A,:56,, meanin" Vedanta !old not have e9pected to pa& ta9 ntil the &ear 44> at themar$et conditions of the time1:. (n the follo!in" &ears Vedanta made record profits for

e9ample A1 million in financial &ear 4?G6 alone15, bt ver& little chan"e !as seen in theZambian national revene from this minin" boom.

Vedanta abandoned the Df(D refrbished +$ana smelter in 4: and bilt their o!n hi"h techsmelter at +chan"a instead. Construction started on the project in February 2006, but theEnvironmental Impact Assessment (EIA) was only submitted in April 2006.20

%he pattern of b&in" massivel& ndervaled state'o!ned entities, and operatin" them !ithotade)ate permission is Vedanta*s specialit&. (n Chhattis"arh, (ndia, the& bo"ht -/C0*sba9ite refiner&, smelter and mines for :5 million in 41 !hen it !as !orth arond :million41. Vedanta Chairman nil "ar!al is crrentl& nder investi"ation b& the Central -rea

of (nvesti"ations in (ndia over the ori"inal disinvestment of 1J of 7indstan Zinc /td ;7Z/< toVedanta for onl& 64 million44, claimin" the deal !as considerabl& ndervaled, and ma& have

1$ lifford hance, edanta all ption Deed, No) th2++$. ea;ed and a)ailable athttp"BBminewatchCambia.blogspot.co.


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lost the e9che)er hndreds of millions of dollars in revene4A. Vedanta sbsidiar& Sterlite*scopper smelter in %ticorin, %amil +ad, has been bilt and e9panded !ithot variospermissions. /ocal activist researcher +it&anand a&araman*s article (edanta1Sterlite 23angerous by 3esign4smmarises these ille"alities and cold be a sefl resorce forZambians to nderstand the operatin" patterns of the compan& !hich o!ns the ma=orit& of theircopper.

KCM is a sbsidiar& of -ritish F%S8 4 minin" compan& Vedanta Resorces. 3nder a recentrestrctrin" of Vedanta, KCM is no! one of onl& t!o ma=or sbsidiaries. %he other sbsidiar&Sesa Sterlite has ei"ht sbsidiaries of its o!n. Sesa Sterlite has been called a *corporaterbbish bin* b& anal&sts !ho s""est its prpose is to soa$ p debt and ris$ from loss ma$in"and hi"h debt companies li$e Vedanta lminim and Cairn (ndia ;oil


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"ar!al pla&ed his sal tric$ of b&in" as man& shares as possible a total of .4 million4:45,bt it !as too late. %his leaves nil "ar!al o!nin" ?6J of the compan&, via his holdin"compan& Volcan (nvestments /td, based in the -ahamas ' a 3K controlled ta9 haven. %hismeans he pa&s a minimm of ta9, in -ritain, or an&!here else he operates.

Vedanta, !hich has operations across (ndia and frica, has been named *the !orld*s mosthated minin" compan&* b& %he (ndependent ne!spaper in -ritainA, !hile even the former

Director of the Confederation of -ritish (ndstries, Richard /ambert, has recentl& s""estedVedanta is brin"in" shame on the F%S8 1 b& *challen"in" the canons of corporate"overnance*A1. s Vedanta*s share prices crashed this !inter, the -siness Standard of (ndiapblished an article namin" people*s resistance and environmental isses at their operations,"overnment re"lations, and hi"h debt as Vedanta*s ma=or !oes affectin" their (ndianoperationsA4. eople*s movements have cropped p in response to ille"alities, hman ri"htsabses, polltion and !or$ers ri"hts isses at almost all of Vedanta*s plants. Most stri$in"l&Vedanta lost 1 billion this smmer !hen it failed to "ain permission to mine ba9ite in the+i&am"iri montains in 0disha, (ndia, de to ten &ears of resistance b& the inhabitin" tribal"rops and farmers. Vedanta had bilt its refiner&, and e9panded it si9 fold to ? million tonnesper &ear capacit&, before it received permission to mine, so certain !as "ar!al that he !old

"et the ba9ite despite the inhabitant*s disa"reementAA,A>

.

#hen Vedanta bo"ht KCM the& inherited man& of the concessions ne"otiated b& n"lomerican in 4, some of !hich had even re)ired ne! le"islation or chan"es to e9istin"le"islationA. %hese are le"alised in Vedanta*s secret Development "reements ne"otiated b&Clifford Chance !ith the Zambian Iovernment !hich are fi9ed ntil 41:. %hese a"reements!ere lea$ed to +I0 researchers and can be fond onlineA?.%he deal "arantees them aro&alt& rate of onl& .?J, and allo!s them to dedct 1J of capital allo!ance from theirinvestments. %he Development "reements also radicall& redced levels of environmentalre"lation and environmental liabilities !hich the minin" indstr& had claimed *cold reslt inver& lar"e claims*. Vedanta !ere e9empted from ta9 on dividends, interest, ro&alties and

mana"ement fees. %he& are also e9empt from rral electricit& ta9A6, !hich is sefl for KCMsince the& se arond 1AJ of Zambia*s electricit&. Vedanta KCM are crrentl& searchin" forne! coal to po!er a captive plant so that the& can avoid a price hi$e !hen their a"reementendsA:.

28 4ane :indall,3nve--. Dec 19th2+1#. 'edanta share price" hairman b


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Copper the elephant in the room

,he copper elephant

Zambia prodces a si9teenth of the !orld*s copper, at almost 1 million tonnes in 414;accordin" to data reported b& minin" companies to the -an$ of Zambia


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information on the volmes of e9traction or the profit made b& minin" companies, ho! can theIovernment ma$e an informed decision on minin" polic&2

#e !ent from pillar to post loo$in" for a cop& of Zambia*s bi""est miner Vedanta'KCM*s annalreport, believin" the vital fi"res on prodction and profit it contains shold be pblicinformation. -t despite visitin" the Central Statistical 0ffice, the -an$ of Zambia, the Dept&Minister of Mines, the /sa$a Stoc$ 89chan"e, and ZCCM'(7 ;4.?J shareholder of KCMA, !hile the -an$ of Zambia ;-oZ< pts thevale of metal e9ports in 41 at ?.6 billion>>. (n the same &ear, accordin" to the Iovernment

of Zambia*s reports to the 89tractive (ndstries %ransparenc& (nitiative ;8(%(< onl& 4 million!as received in ta9 revene from minin", or ?:: million if N8 ;ta9 dedcted from !or$ers*pa&< is inclded>, a tenth of the estimated vale of the e9ports.

-t this is not the !hole stor&. #h& are the CS0 and -oZ fi"res so different2 %he CS0 ta$esits fi"res from the minin" compan&*s declarations, !hile the -an$ of Zambia ses its o!nformlas to estimate prodction and e9port volmes. (n 41 CS0 report 6?6,: tonnes ofcopper prodced, !hile -oZ report :4,?? a difference of :, tonnes. (n 414 CS0report 641,>>? tonnes, and -oZ :4>,544 tonnes, a difference of 1A, tonnes>?>6.So there isno clarit& !ithin Zambia on the actal levels of prodction or e9port of metal.

(t is li$el& that the real fi"res are considerabl& hi"her for several reasonsO ille"al minin"operations e9tractin" ore nder the radar, and deliberate nder'declarin" of prodction ande9port volmes b& companies. Research condcted b& the (SS in Zambia in 41 fond theminin" indstr& e9tensivel& affected b& theft, corrpt bsiness practices, ta9 evasion andsm""lin">:.

411 detailed investi"ation into the operations of Mopani Copper Mines ;a sbsidiar& ofIlencore (nternational< b& a "rop of international +I0s *revealed cobalt e"traction rates twiceinferior to other producers of the same area 1 a difference deemed unlikely by the auditors and

which indicates that some of the ore e"tracted by +opani could remain undeclared.'49

(t is li$el& that cobalt, a metal !ith a vale three times hi"her than copper, is considerabl&nder'declared. Stattor& instrment :5 in Zambian la! permits the e9port of nprocessed ore,

$# entral -tatistical ffice, 'raditional !4ports 200> ? 2012. -


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and the e9port of !aste prodcts is also permitted. 0ne financial =ornalist !e spo$e to in/sa$a alle"ed that cobalt, silver and other minerals are e9ported ndeclared in ores and !asteprodcts. KCM alle"edl& e9port !aste $no!n as *slimes*, !hich ma& contain other minerals forprocessin" otside Zambia. (n (ndia Vedanta*s sbsidiar& Sesa Ioa are accsed of e9portin"1 million tonnes of iron ore from Ioa in 41G11 !hile onl& declarin" 6.? million, their a"reede9port allo!ance.(t !old not be nreasonable to assme sch a compan& !old be prone tomisdeclarin" its e9ports else!here. Revelations abot Vedanta*s ille"al minin" in Ioa and

Karnata$a !ere ori"inall& made after commnit& srve&s of nmbers of trc$s leavin" theirmines !ere carried ot. Simple srve&s sch as this cold e)all& be sed in Zambia todetermine the accrac& of compan& reportin" on prodction and e9port.14

paue profit

KCM and other minin" companies in Zambia don*t pblish their profits, even tho"h theZambian ta9pa&er has a share in most of them via ZCCM'(7. 7o!ever Vedanta*s 41A annalreport claims KCM prodced 41?, tonnes of copper in 41A. (n the same &ear costs ofprodction !ere valed at 4.1 3S centsGlb, pttin" the total cost of prodction that &ear at

1.4 billion, !hich !old constitte a profit of A?4 million ;at a crrent copper price of6,A


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Vedanta*s o!n fi"res shold be treated !ith sspicion. (f the& onl& prodce : tonneGemplo&eecompared to a "lobal avera"e of 1 tonneGemplo&ee, as the& have often stated, ho! are the&still ma$in" a A?4 million profit2 8ither the& are pa&in" the !or$ers ver& little, ma$in" lar"emar"ins on other concessions, or misdeclarin" their prodction. Dept& Minister of MinesRichard Ms$!a s""ested to the researchers of this report that Vedanta have been doin" alot of in'hose tradin" b& brin"in" in (ndian companies as contractors.

nal&sts reports from Ilobal Data reveal that KCM made 14.15J of revene for the entireVedanta "rop in 4146so the& are certainl& not doin" too badl&.

%he !idespread se of *transfer mis'pricin"* means that man& minin" companies nder'declaretheir profits !ithin Zambia to redce ta9. %ransfer pricin" is heavil& lin$ed to the se of ta9havens, !hich is ver& common amon" minin" con"lomerates. For e9ample, minin" companiescan sell their copper to a holdin" compan& !hich is one of their o!n sbsidiaries, based in a ta9haven li$e the -ritish Vir"in (slands or the -ahamas, at belo! mar$et price, recordin" lo! orHero profits in Zambia. %he holdin" compan& then sells it on to the b&er at a hi"h vale,recordin" hi"h profits at their holdin" compan&, !hich are barel& ta9ed. lea$ed report

athored b& Irant %hornton at the re)est of the Zambia Revene "enc& ;ZR< demonstratedho! the Ilencore*s Mopani Copper Mines ;MCM< sed this t&pe of transfer mis'pricin", as !ellas overestimated operatin" costs and nderestimated prodction volmes, to declare noprofits, and cheat Zambia*s e9che)er ot of millions of dollars, !hile ma$in" a fortne.:

41 8conomic Commission for frica report on Tracking and *ertification of +ineral >utputin Southern AfricastatesB

There are also concerns about such practices as transfer pricing by large1scale miningconglomerates taking advantage of intra1group agreements involving the holding companiesbased in low ta" jurisdictions and the subsidiaries based in the region. Transfer pricing

abuses take various forms, including over1 or under1invoicing of e"ports and imports,overloading of costs onto the subsidiary, service contracts and intra1group loans. Throughsuch agreements, the holding companies are able to transfer income and allocate costs in ahidden manner that unfairly favours them. These malpractices reduce revenue which wouldhave accrued to the producing States, thus e"acerbating poverty amidst a rich naturalresources heritage 2 the so1called ?parado" of plenty@BC

% lobalData, edanta Resoinancial and -trategic Analysis Re)iew, 18th 4


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,he pro*lem ith rentseein(

3nder pressre from the #orld -an$, (MF and other donors, Zambian athorities have redcedta9ation on minin" companies to a minimm to *attract investment*. %he corporate ta9 rate forminin" companies is set at AJ ;compared to AAJ for other companies


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Fi"re >B #orld*s top copper miners ;top< verss top copper refiners ;bottom< ;(CIS drin" a dispte over lo!ro&alt& and other rental rates for"ranite minin".?5Ma=or

international campai"ns sch as%a9 stice +et!or$ and the89tractive (ndstries%ransparenc& (nitiative havepla&ed into this *rent see$in"*ideolo"&, lobb&in" for minorincreases in ta9 revenes, andi"norin" more profond issesarond the o!nership andvalation of mineral resorces atthe otset.

Zambia did abandon ro&alt& ratesin 15??, follo!in" independence,and introdce an e9port ta9 toredce the lea$a"e of copper

profits overseas. %his helped enable the contr&*s copper boom in the ne9t decade.6%oda&copper prices are a"ain hi"h, !ith a profit mar"in of at least 4 per tonne ;differencebet!een prodction cost and price of copper see fi"re 4< bt Zambians are seein" ver& littlebenefit.

,he real price of copper

Since private minin" companies are not carr&in" ot a *service* for the state, bt rathere9tractin" resorces for their o!n profit, ro&alt& rates ma& not be an appropriate form ofresorce ta9. (nstead it !old be sefl for the Zambian "overnment to evalate the real valeof its copper and other mineral resorces, and consider char"in" for e9traction accordin"l&. %hismeans demandin", or independentl& see$in", information on the real cost of prodction, andthe real profit attained b& companies.

ccordin" to KCM*s o!n reports, their assets in Zambia comprise 1A.? million tonnes of

!9 'a4es of mines and minerals ? arnata&a State at $3C, 18 A


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copper61. t crrent rates of 6,AGtonne this !old be !orth 55 billion. %his vale belon"s tothe Zambian people.

Shortl& after ta$in" office this &ear resident Mahama of Ihana stated his disma& abot themea"re retrns the contr& sees from its natral resorces. 7e declared that e9ports ofnprocessed ore and other resorces shold be stopped, and vale shold be added to theseprodcts in Ihana. %he blic cconts Committee also made statements e9pressin" shoc$ at

the volme of earnin"s from Ihana*s "old mines !hich !ere $ept in forei"n offshoreacconts64. 7ead of olic& Monitorin" and 8valation in the resident*s office, Dr %on& idoo,made a ver& profond statement to the pressB

3r Aidoo told the Accra1based Hadio :old that he would rather the minerals remaineduntapped in the ground so that local mining techniques, even if primitive, could be employedto e"ploit them. #f that meant only BI of the minerals were e"ploited, he said, it would be farbetter for the country than the current situation where :hanaians themselves did not benefitfrom :od1given resources6.

%he cost of minin" to

the Zambian andIhanaian economies"oes far be&ond lossof profit from ta9ationor e9port vale. %hereal price of copperincldes the polltionof !ater and aircased b& minin" andtransportation, the costof decommissionin"

mines and smelters,health effects on localpoplations, and thedepletion of the finiteresorce, !hich !ill

not be available to ftre "enerations. %hese are $no!n as *e9ternalities* real costs !hich !illbe borne b& people and "overnments at present and in the ftre, bt !hich are not inclded inthe mar$et price of a resorce. 8colo"ical economist Maarten De #it vales the real cost ofcopper ;incldin" e9ternalities< at AA, per tonne, for to five times the crrent mar$etprice.6>%he price is hi"h becase copper is one of the most material intense metals to prodce creatin" tons of !aste, and sin" 4? tons of !ater for each ton of primar& copper.6

3nderstandin" the real ecolo"ical price of copper is important for resorce rich states, since!hen their resorce is depleted, the& !ill contine to pa& for the e9ternalities for &ears to come.%his sort of calclation shold be inclded in the cost benefit anal&ses !hen ne! mines areproposed or deals strc$ !ith companies.

%1 @on;ola opper *ines, presentation to in)estors, No)ember 2+12. ###slides+arenetedanta


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revene from minin" si9 times if these prices had been realised in Zambia6:. ;see fi"re :fficer E*!>G could nothide the intentions of the company when he asked the government to e"tend the ta"holidayLe"emptions the company has been enjoying ever since )*+ was set up E---G.&M4

"stine Se&ba is no! ermanent Secretar& in Zambia*s +orth #estern province, anpcomin" minin" area, sho!in" the dan"eros and common revolvin" door from =ornalism toR to politics. KCM*s crrent R head ' o& Sata, is another former =ornalist, and their head of

Commnications Shapi Shacinda, is a former Reters correspondent.

(n (ndia Vedanta has come nder attac$ for its misleadin"R campai"ns. ma=or national campai"n in (ndia called*minin" happiness* had to be scrapped after celebrit&participants plled ot de to concerns abot Vedanta*sethics. ctivists formed a parallel campai"n called *fa$in"happiness* !hich pointed ot the trth abot Vedanta*sminin" practices sch as land "rabbin", to9ic !astedmpin" and harassment of villa"ers !ho opposed theirpro=ects:.

Vedanta are crrentl& rnnin" another ma=or R campai"nin (ndia called *0r Iirls, 0r ride* !hich paints them as!omen*s ri"hts advocates. %his has also been opposed b&!omen*s "rops !ho have called it a sham, notin" the man&!omen and "irls made homeless, fatherless and destitteb& Vedanta, as !ell as those !ho have led socialmovements a"ainst their operations:?.

8# 0mail from incent engwe, Director of opperbelt :rade and De)elopment >or


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Vedanta*s perception mana"ement in Zambia has also involved spreadin" some seriosmisconceptions ri"ht p to the hi"hest levels of Zambian politics. %he most common m&th isthat Vedanta is an (ndian compan&, !hen in fact the& are re"istered on the /ondon Stoc$89chan"e and head)artered in /ondon. %ho"h the ma=orit& of their operations are in (ndia,and ma=orit& o!ner nil "ar!al is (ndian b& birth, (ndian shareholders hold less than 1J of thecompan&, and Vedanta are ans!erable to -ritish compan& la!.

#e !ere shoc$ed to discover the prevalence of this misconception in Zambia. Dept& IeneralSecretar& of the Mine #or$ers 3nion of Zambia ' /eonard hiri, told s The belief we havehad is that )*+ is an #ndian company and it has not been making profit.Q 7e !ent on torespond to the ne!s that Vedanta !as in fact -ritish, and !as ma$in" lar"e profits in Zambiasa&in"O

They can&t take care of safety measures, they can&t talk about their future plans for )*+, orwhere they e"pect to go to after this.. they can&t follow mining regulations, they have hugeindebtedness due to outsourcing companies that were not being paid money. All thesethings have been made clear to the people in the country,..and it has really been looked at ina negative light by the Kambian community and the Kambian state, where the government

now has to look for a team to monitor its operations so they can see if they can salvage thecompany from its current doldrums, which is a very very sad state of affairs. And, if it isowned by the 0ritish, as you are saying, # would not e"pect this, because the 0ritish have ahistory of running entities in a professional manner, respecting the indigenous laws of thecountry they are operating from, and motivating the workers of the country. This is not thecase with )*+.:6

Creatin" a perception that the& are not ma$in" profit is important to Vedanta in Zambia as the&can se this to bar"ain for redced ta9es and other costs. Vedanta recentl& claimed the& coldnot pa& an alle"ed :? million in npaid ta9 as it !old compromise their abilit& to pa&!or$ers::. =ornalist told s that since Vedanta*s reptation !as seriosl& compromised b&

their attempt to fire 4 !or$ers this &ear, the& have been ta$in" ot front pa"e ne!spaperads sa&in" the& are prospectin" for oil and "as in Zambia, tho"h there is no evidence that the&have made an& sch developments.

%his sort of perception mana"ement is also sed b& Vedanta to create investor confidence. Fore9ample, !hile claimin" the& are cash strapped in Zambia, Vedanta !ill tell investors that KCMis hi"hl& profitable. %his enables them to secre loans or increase share pta$e. Most famosl&,Vedanta created the perception that the& had permission to mine the +i&am"iri 7ills in 0rissa,(ndia, for ba9ite, !hich !as reported in the 3K*s Financial %imes in 4>, assistin" them !ithinvestment and loans for the pro=ect.:5(n fact permission !as never "ranted, ltimatel& costin"them 1 billion from an nrealised investment5.

8% 7nter)iew with eonarh =hiri, *ine (or;ers 3nion of /ambia, 9B12B1#.88 *atthew 5ill,loomberg $e#s, No) !, 2+1#, 'edantaLs /ambia 3nit -


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,he truth a*out !edanta in )am*ia:

ater pollution

#e visited commnities livin" arond Vedanta'KCM*s mines and refineries in the Copperbelt.7elen and Shimlala commnities are located near KCM*s +chan"a mine in Chin"ola. %he& arehome to > people. olltion from KCM*s tailin"s dam nmber 4 ;$no!n as %D4< has

contaminated their !ater sppl& as !ell as the Mshishima stream !hich rns nearb&. /ocalresidents told s that KCM drilled them a borehole after the stream became contaminated bt!hen the& too$ samples it !as also pollted !ith copper slphate. %he& alle"e that a !ater tan$sbse)entl& delivered b& the compan& also contained contaminated !ater. #ith no clean!ater sorce in their villa"e residents no! !al$ to a shallo! !ell the& have d" in marsh tofetch dirt& !ater. %he& fear this ma& also be pollted.

KCM*s press releases praise their contribtion to local commnities b& releasin" ,fin"erlin"s into Mshishima stream this smmer.51-t residents sa& altho"h the& eat fish fromthe stream, the& are !orried that the& ma& also be contaminated.(n 4? KCM released ra! efflent from their polltion control dam into the Mshishima stream,!hich rns directl& into the river Kafe, the !ater sorce for >J of Zambia*s poplation. %hereslt !as some of the !orst contamination Zambia has ever seen, !ith chemicalconcentrations of 1 9 acceptable levels of copper, 66 9 man"anese and 1 9 cobalt in theriver Kafe, trnin" it a stran"e ble "reen color.540ne local resident told a =ornalistB

e are scared. #n fact even this water they are bringing in tanks is not enough.


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settle an& compensation !ith the thosands of people affected b& drin$in" the !ater. Follo!in"the failre of the 8nvironmental Concil of Zambia ;8CZ, no! Z8M< to prosecte thecompan&, /sa$a based la!&er Kelvin -!al&a too$ a pblic interest liti"ation a"ainst KCM onbehalf of 4 affected people. (n a landmar$ rlin" Spreme Cort =d"e hillip Msondaordered KCM to pa& a total of 4 million to the families, sa&in" he !anted to ma$e an e9ampleof KCM for their *"ross rec$lessness*. 7e also stated thatO

The courts have a duty to protect poor communities from the powerful and politicallyconnected. # agree with the plaintiffs pleadings that )*+ was shielded from criminalprosecution by political connections and financial influence, which put them beyond the paleof criminal justice.Q5>

7o!ever, Vedanta sbse)entl& challen"ed this decision, claimin" the& !ere not responsiblefor the contamination. 3ntil no! the case has not been heard and the residents are &et to becompensated. Mr -!al&a told s abot the lon" term effects of the incident !here local peopleare still e9periencin" miscarria"es, and prematre and deformed births.5%he li$el& lon" termimpacts of the spill ma& inclde ln" and heart problems, respirator& diseases and liver and$idne& dama"e. 89posre to man"anese can case *man"anismP a disease of the centralnervos s&stem affectin" ps&chic and nerolo"ical fnctions. -rain dama"e effects in the local

poplation ma& onl& sho! p in ftre "enerations.5?

(n 41 KCM contaminated the river a"ain, in another ma=or incident !hich left thosandspoisoned once a"ain. %he& !ere fond "ilt& b& Zambian corts on for conts, incldin"*!ilfll& failin" to report an act or incident of polltion of the environment* .560ne of the victims,

!ho !as admitted to hospital !ith the rest of his famil& follo!in" the spill told the press thatKCM !as a serial offender, and had repeatedl& pollted the Kafe river !ith slphric acid as!ell as committin" several ma=or incidents. 7e claimed KCM !as *polluting the environmentwith impunity because the mining company was highly favoured by the government*.5:

9$ Newton -ibanda, December 12, 2+11.(ambia :ig+ Court orders on&ola Copper Mines to pay 2 million BSD forpolluting "iver Mus+is+ima

9 7nter)iew with @el)in 6walya, 18thDecember 2+1#.

9! Dobson, A( et al, 2++$. '*anganese ne


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Air pollution

#e met residents livin" near KCM*s +$ana refiner& and smelter in Kit!e !ho claimed ambientair polltion is a constant problem, and that miners and other local residents sffer fromdiseases sch as %- cased b& airborne contaminants ;as !ell as the hi"h rate of indstrialaccidents in the mines and plant


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livin" !a"e.1A S$illed, and even semi's$illed labor is often spplied b& imported (ndianemplo&ees, !ith an estimated crrentl& !or$in" at KCM.1>

KCM*s reptation in Zambia too$ a nosedive this Ma& !hen the& annonced the& !oldretrench ;fire< 4 !or$ers as part a bid to streamline operations and increase profits.resident Sata threatened to revo$e their minin" license if the& !ent ahead, and the plans !erept on hold. -t KCM*s C80 Kishore Kmar defied him, la&in" off 6? !or$ers in +ovember,

!hich so an"ered Sata*s "overnment that the& issed a deportation notice for Kmar andcancelled his !or$ permit, callin" him *arro"ant*. -& +ovember the official nmber of emplo&eesto be fired had decreased to 145, tho"h local activists claim had alread& ta$en volntar&redndanc& in the meantime.1Vedanta Chairman nil "ar!al fle! ot to Zambia to ne"otiateover the la&'offs, leadin" Chin"ola*s district commissioner to accse KCM of actin" li$e a *small"od* b& tr&in" to arm t!ist and blac$mail the "overnment.1?

8ach mine !or$er in Zambia has an estimated 1'14 dependants so Vedanta*s proposed =oblosses !ill affect p to 4, people in total. Samfronce -!a&la from +chan"a province*atholic *hurch 5ustice and =eace, !ho !or$ !ith minin" commnities sa&sB

N+any people in this nation will suffer from retrenchment. !ach miner who is retrenched hasnieces and daughters who depend on them, in colleges and $niversities and elsewhere. Theywill all suffer. !ven people who have left the copperbelt still depend on copper belt money.N-

KCM have also been dedctin" e9cess ta9 from!or$ers since the retrenchment !as annoncedin Ma&, b& claimin" the !or$ers had previosl&nderpaid ta9, and dedctin" the bac$datedamont from the pa&che)es, leavin" them !ithp to half their sal salar&. %his !ent on for afe! months ntil nion action pt a stop to it and

the e9cess ta9 !as eventall& refnded.1:recent article also claimed that the 6? fired!or$ers !ere nfairl& compensated, and "iven*peants* as redndanc& benefits.15Vedanta*sclaim that la&'offs are necessar& de to poorprofitabilit& has led to their investi"ation b& aIovernment tas$ force, to establish the

sstainabilit& of their operations11. Mean!hile at Vedanta*s nnal Ieneral Meetin" in /ondonin "st 41A "ar!al braHenl& claimed that the compan& has not retrenched a sin"le !or$erin an& of their operations.111

1+#Aby Diamond et al, ctober 2++%, Bndermining Development Copper in (ambiaA:-A, -7A> and hristian Aid.1+$ 0stimated by *inewor;ers 3nion of /ambia Dep


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(n ne 414 KCM !ere ordered to pa& dama"es to -alaam M!ila, an en"ineer !ho !asdismissed after he attended a pblic form shortl& after KCM*s 4? contamination of the riverKafe. Mr M!ila said that residents shold *ta$e KCM on* becase the& made 4.? million ever&da& and cold easil& afford to compensate residents. KCM sbse)entl& fired him for*unprofessional conduct that might directly or indirectly tarnish the company&s image*. d"eMa$an" a"reed that Mr M!ila !as e9ercisin" his freedom of e9pression and added that %hedefendant has not shown that the plaintiff told a lie that the company was earning profits of that

magnitude daily.

114

s previosl& mentioned Vedanta are also in a le"al battle !ith the Zambian "overnment over a:? million ta9 bill, char"ed b& the Revene thorit& after an adit revealed KCM did nothave receipts from the final destination of man& of its e9ports. Mean!hile Vedanta has bra""edin investor presentations that J of their ta9 contribtions in Zambia are via !or$ers* a& sNo 8arn ;N8


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ho ons )am*ia$

0ther stdies have dealt !ith Zambia*s lac$ of soverei"nt& over its o!n *development* de tothe restrictive conditions placed on it b& #orld -an$ and (MF loans and *aid*. %hese conditionshave forced cts to "overnment spendin" and the privatisation of almost all of Zambia*sparastatal entities over the last three decades, ma$in" Zambia a celebrated model of economic

liberalisation, bt simltaneosl& e9acerbatin" levels of povert& and deprivation.11>

#e !ill notdeal !ith the !ell pblicised impacts of the #orld -an$ and (MF here, bt instead attempt toshed li"ht on several of the lesser $no!n interests behind these a"encies and the mltinationalcompanies the& have shered in.

5hareholder interests

"lance at the top shareholders of the lar"est minin" companies in Zambia is ver& revealin";see fi"re 5.>1 Iovernment of +or!a& 4.A ffiliated mana"ers "rop(nc

>.:4

-lac$roc$ "lobal fnds !orld minin" fnd

A Capital "rop companies(nc

1.> rdential plc A.A5

Chase nominees ;onbehalf of I(C private ltd? Carmi"nac Iestion A.1

I(C private ltd 4.55 Iovernment of Sin"apore .>A Mor"an chase co 4.A:

-lac$roc$ is the !orld*s bi""est asset mana"ement compan&, in char"e of >.1 trillion of assets;incldin" mch of Zambia*s copper via its shares


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Secrities and 89chan"e Commission ;S8C< that sch a monopol& on copper !old s)eeHethe mar$et and send prices s$&roc$etin" bt nder pressre from -lac$roc$ and the ban$s theS8C approved their proposal.116%he alminim ftres mar$et set p b& Ioldman Sachs, on!hich the copper ta$eover is modelled, is estimated to have cost consmers billions of dollarsin price hi$es, as mar$et maniplations sent prices soarin".11:-lac$roc$ also o!ns 6.51J ofFreeport McMoran Copper and Iold (nc, the !orld*s lar"est pblicl& traded copper prodcer,ma$in" it a ma=or po!er in the copper indstr&.

nother $e& shareholder in Zambia*s copper ' Capital Irop, based in /os n"eles, is one ofthe !orld*s lar"est investment mana"ers, controllin" arond 1 trillion in assets.

(t is !orth notin" that the Iovernment of +or!a& have a lar"e share in Ilencore (nternational,the controllers of Mopani Copper Mines ;one of the lar"est and most contentios and ta9avoidin" miners in Zambia


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!ord *bsiness*


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!hom "ar!al is also li$el& to have met !ith. Ra=apa$sa !as ltimatel& nable to spea$ at theevent de to protests hi"hli"htin" his role in %amil *"enocide*.146

t the same time Df(D remains a $e& provider of *aid* to the Zambian "overnment, incldin"spportin" its electoral process, and fndin" the Central Statistical 0ffice and anti'corrptionstrate"ies. /i$e the earlier e9ample of +or!a&, the 3K "overnment*s stated aims of its*development aid* to Zambia are often in direct conflict !ith the interests of 3K financial polic&

and 3K re"istered companies, be""in" )estions on ho! the 3K "overnment is reall& sin" itsinflence in Zambia.

(n fact -ritain has been a central force in opposin" policies !hich !old have bro"ht "reaterprosperit& to Zambians thro"h minin". (n 15?4 the 3+ Ieneral ssembl& passed Resoltion1:A on The ?3eclaration on the =ermanent Sovereignty of

Finall&, the ne9t chapter !ill deal !ith the enormos inflence of international +I0s and donora"encies on Zambian politics and societ&, and their role in the neo'liberal pro=ect in Zambia.

12% -hi) *ali; and AleGandra :opping, '-ri an;an president cancels speech in ondon o)er protest fears', !th4


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/s and civil society parasites of the poor$

ccordin" to the Central Statistical 0ffice of Zambia, +I0s and chrches emplo&ed A6,15people in 414,1A !hile minin" emplo&ed 6>, ;accordin" to the Zambia Development"enc&


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!or$ed in !as sddenl& &filled with 3f#3 Jand *ruisers and people from the district whom shehad not met before. Apparently this was the ?delivery of 3f#3s gender1based violenceprogramme. The 3f#3 team swooped in, gave everyone free *oca1*ola and a te"t to keepabout :0(, and then swooped out again.& .6C

Secondl&, it can lead to a *bo9 tic$in"* approach, !here +I0s appear to be doin" the minimmnecessar& to en"a"e the participation of commnities for fndin" reports. 0ne activist !e spo$e

to alle"ed that ction id emplo&ees had bo"ht commnit& members beer in e9chan"e for"ivin" statements a"ainst a minin" compan&.1>

%hirdl&, in man& cases, as !e e9amined earlier, lar"e donor a"encies ;!hether "overnmental orprivate< have their o!n commercial or national interests !hich inflence the a"enda of +I0sand limit their capacit& to represent commnities. %he head of a lar"e /sa$a basedinternational +I0 told s ho! Df(D had !arned her not to pt too mch pressre on -ritishcompanies operatin" in Zambia. She had replied that Df(D fnded the 3K branch, and not theZambian nit.1>1

#e have covered the case of -siness artners for Development ;-D< pro=ects involvin"

CR8 international and other local +I0s previosl&. -ehind the rhetoric of local capacit&bildin", -D*s KCM pro=ect !as lar"el& in the interests of n"lo merican and itsshareholders. #hether the participatin" +I0s !ere a!are of this or not, the& are complicit in!hat !as essentiall& a CSR pro=ect aimed at preventin" dissent at mass la&'offs and rescin"the ima"e of an a mltinational minin" compan&. #ritin" abot +I0s in Zimbab!e, Dianeeater claims that *very often, there is a belief that the aid agendas serve e"ternal commercialinterests more than local human needs*, leadin" her to the conclsion that +I0s are *parasiteson the poor&.4

hose politics$

8arlier in this report !e toched on the minimal impact of ta9 =stice and ro&alt& basedcampai"ns in Zambia. %he aims and vales of these campai"ns are often more related to donorinterests and !orld'vie!s than an informed )estionin" of minin" economies or people*s"rassroots perspectives. %he most obvios e9ample of this is the 89tractive (ndstries%ransparenc& (nitiative ;8(%(A7ence, the

1#9 Diana 4eater, thA


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millions of dollars of fndin" spent on 8(%( not onl& fail to address the real sorce of ta9lea$a"e, bt simltaneosl& co'opt the debate and hide the 3K*s central role in catacl&smiclevels of ta9 avoidance. s Sharife sa&sO

!ach year, Africa loses a minimum of D4Mbn 1 almost four times the sum of foreign aid itreceives, to capital flight 1 of which '- per cent is due to corporate mispricing. *learly, thesolution toward enabling African countries to recover their lost revenue and become

economically independent, is to block revenue leakages, rather than provide further loansand grants characterised by conditionalities that undermine development.44

;olitical influence

0ne +I0 contr& head for Zambia told s ho! !or$in" for *civil societ&* can be a career pathto a =ob in politics, via connections made tho"h lobb&in" activities and international donora"enciesB

*ivil society figures also end up in politics, then they change. Some civil society people are

actually working for the government and chamber of commerce, so they are really alreadygovernment, yet they represent the civil society.1>

0ne poplar (ndependent M, atric$ Mchele$a, !as previosl& 89ective Director of *ivilSociety for =overty Heduction, a lar"e +I0 fnded b& the 8ropean 3nion, ction id, Df(D,I(Z ;Ierman aid


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#f Kambia had converted all the aid it received since C'- to investment and all of thatinvestment to growth, it would have had a per capita :3= of about D-,--- by the earlyCC-s. #nstead, Kambias per capita :3= in the early CC-s was lower than it had been inC'-, hovering under DB--.1>:

%his simplistic ar"ment fails to ta$e accont of the man& !a&s, noted in this paper, in !hich

Zambia has lost ot from its attempts to attract FD(, not least the *capital fli"ht* of ta9 reveneso!ed b& these companies, on top of !ea$ened re"lations, environmental dama"e and socialisses. Dambisa Mo&o, a Ioldman Sachs ban$er, no! sits on the boards of -arric$ Iold and-arcla&s -an$ both infamos for their ta9 evasion and loot of the %hird #orld, and has madeher theories poplar !ith the (MF, #orld -an$ and Concil on Forei"n Relations amon" otherneo'liberal instittions.1>5

%ho"h a redction in aid ma& not be a bad thin", its replacement !ith investment b& forei"nmltinationals !ith e)all& conflictin" interests to the Zambian people is not a soltion. s thefrica ro"ress anel*s 41A report on 8)it& in 89tractives statesB

(iewed from a different perspective, foreign investment brings many challenges. FewAfrican governments negotiating the terms of concessions and licences have the type ofinformation they need to assess the e"tent of mineral reserves and the potential costs ofe"traction and marketing. 0y contrast, oil and mining companies have unrivalled access tocommercial market information, geological analysis, technologies for e"ploration ande"traction, financial resources, and e"port channels. hile corporate revenues are notstrictly comparable to :3=, the commercial activities of multinational natural resourcecompanies dwarf the economies of the African countries that they operate in.

Asymmetry in information is not the only problem. Foreign investors in Africas e"tractiveindustries operate across jurisdictions and through enormously comple" company

structures. =etroleum and mining companies channel their financial and trade activity inAfrica through local subsidiaries, affiliates and a web of offshore companies. Thecombination of comple"ity, different disclosure requirements and limited regulatory capacityis at the heart of many of the problems discussed in this report. #t facilitates aggressive ta"planning, ta" evasion and corruption. #t also leads in many cases to the undervaluation ofAfricas natural resources 2 a practice that drains some of Africas poorest nations ofdesperately needed revenues.B-

%he report also notes that *returns on investment in Africa are high by the standards of otherdeveloping regions/ - per cent compared with per cent to B per cent in Asia and JatinAmerica*, a clear indication that e9ploitation is ta$in" place, and that other policies are possible.

#hat is trl& needed in Zambia is political atonom& from all otside interests, strate"ic lin$s!ith fello! resorce rich nations and bet!een their social movements, and sharin" ofinformation to enable a deep re'anal&sis of ho! to avoid the *resorce crse* and create asstainable ftre.

1$8 (illiam 0asterly, 2++#, 'an >oreign Aid 6


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Conclusion and recommendations

Zambian politicians and ne!spapers often tal$ abot forei"n companies as *investors* in theircontr&, and companies themselves present their presence in Zambia as a benevolent effort tocreate =obs, even at their o!n loss. %his misconception coldn*t be frther from the trth.

89tractive indstries come to Zambia to ta$e advanta"e of lo! ta9es and liberal policies !hichallo! them to rthlessl& loot and e9ploit the natral resorces, leavin" behind corrption andenvironmental and social dama"e !hich their minimal ta9 contribtions don*t come close tocompensatin". Recent stdies have revealed in ne)ivocal terms that Sb Saharan frica is a*"lobal net creditor* of billions of dollars each &ear ;mostl& in *illicit fli"ht* of o!ed ta9es,ndeclared e9traction and corrpted deals


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ccrate information cold contribte to developin" a *critical consciosness* in Zambia, !hiche9amines and )estions ne! models of development, as$in" ho! the& !ill serve people*sneeds. Critical consciosness is necessar& to prevent Zambians from bein" !ooed b& therhetoric of ne! brands of neo'liberalism, !hich represent little or no chan"e from the olde9tractivist re"ime and are bac$ed b& the same interests. 0lack !conomic !mpowerment;-88< in Soth frica ;led b& the +C*s C&ril Ramaphosa !ho no! sits on the board of/onmin,he ;ost )am*ia nespaper> 200-

Copper Colonialism in Zambia

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Transcript of Copper Colonialism in Zambia