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Lund University International Master's Programme In LUND UNIVERSITY INTERNATIONAL MASTER’S PROGRAMME IN ENVIRONMENTAL STUDIES AND SUSTAINABILITY SCIENCE An Assessment of the Economic, Social and Environmental Impacts of the Mining Industry A Case Study of Copper Mining in Zambia AUTHOR: SUPERVISOR: Priscilla Kaela Kangwa Dr Ransom Lekunze, Copperbelt Museum Department of Social and Economic Geography Buteko Avenue Lund University P.O Box 71444 Sölvegatan 12 Ndola 223 62 Lund Zambia. Sweden. Phone: +260 22617727 Phone: +46 739397478 Email: [email protected] Email: [email protected] May, 2008 1 ACKNOWLEGEMENTS First and foremost I would like to pay special gratitude to my employer, Copperbelt Museum for the financial and moral support they have given me during my studies in Sweden. Special mention goes to the Director, Mr. Siachoono and all the employees at the Museum. I would be out of line if I did not acknowledge the invaluable support and guidance provided by my supervisor, Ransom Lekunze during the conceptualization of the thesis and finally the write up. I would also like to thank LUMES professors who in one way or the other contributed to my successfully finishing the programme. I would also like to pay special appreciation to Fadina for his constructive criticism which helped shape the paper. Lastly I would like to pay my special gratitude to all my LUMES friends who made my stay in Sweden memorable. DEDICATION My special acknowledgement go to my sister Matilda Kangwa who has been a driving force behind who am today and this thesis is dedicated to her for making me. ABSTRACT The mining and mineral industry as sources of primary export income plays an important role in the economic and socio-political development of many developing countries, as these countries largely depend on the mining for their economic development. An example of which is Zambia. This study assesses the impacts of copper mining in Zambia, a country which is highly dependent on copper for foreign exchange earnings; the assessment was carried out through the use of a case study methodology which employed interviews and documents as instruments for data collection. It establishes that copper mining in Zambia has been a major contributor to the country’s foreign exchange earnings however; the revenues from copper mining is externalized and consequently makes very minimal contribution to the local economy and people. It further establishes that though copper production has been on an increase and seen increased inflows in DFI, environmental management has not received the same attention and this has negatively impacted on the environment and the livelihood of the people of the Copperbelt Province. In addition to this, the social impacts on the local people arising from copper mining were examined and it was found that the mining industry has negatively impacted on the social support systems of the local people and that productive land which could ideally be used for other developmental projects has been allocated for copper mining. The study therefore, recommends reinforcement of institutional capabilities and competencies for proficient long-lasting planning for sustainable development. Key Words : Copper mining; Mineral industry; Economic development; Environment; Social impacts; Livelihood; Foreign exchange earning 2 TABLE OF CONTENTS CHAPTER ONE ........................................................................................................................... 5 1.1. Introduction ............................................................................................................................................ 5 1.2. Background and Problem Formulation ................................................................................................... 6 1.3. Study rationale and relevance ................................................................................................................. 7 1.4. Research objectives ................................................................................................................................ 8 1.4.1 Research questions ........................................................................................................................... 8 1.4. 2. Statement of the Hypothesis ........................................................................................................... 8 1.5. Thesis outline .......................................................................................................................................... 8 CHAPTER TWO .......................................................................................................................... 9 2.0. Research Framework .............................................................................................................................. 9 2.1. Research design and methodology ......................................................................................................... 9 2.2. Instruments for Data Collection ............................................................................................................. 9 2.3. Study area ............................................................................................................................................. 10 2.4. Study population and Data collection process ...................................................................................... 10 2.5. Scope and limitations ............................................................................................................................ 11 CHAPTER THREE .................................................................................................................... 12 3.0. Theoretical Framework and Literature Review .................................................................................... 12 3.1. The political economy of copper .......................................................................................................... 12 3.1.2. Structuralist Dependency (Singer-Prebisch) Theory. .................................................................... 13 3.1.3. Radical Dependency (Neocolonial dependency) theory ................................................................ 13 3.1.4. The Central Propositions of Dependency Theory.......................................................................... 14 3.2. Economic explanations for mineral resource curse .............................................................................. 14 3.3. Political explanations for mineral resource curse ................................................................................. 15 3.3.1. Rent seeking and corruption .......................................................................................................... 15 3.3.2. Mineral resources and governance ................................................................................................ 16 3.3.3. Mineral resources and conflict ...................................................................................................... 17 3.4. Mineral mining ..................................................................................................................................... 17 3.5. Mining and the environment: An Overview ......................................................................................... 18 3.5.1. Impacts of Mining on Air Quality ................................................................................................. 18 3.5.2. Impacts of Mining on Water regime .............................................................................................. 18 3.5.3. Impacts of Mining on Land ........................................................................................................... 19 3.5.5. Biodiversity and habitat loss .......................................................................................................... 19 3.6. Mining and health ................................................................................................................................. 19 3 3.7. Mining and local people ....................................................................................................................... 19 CHAPTER FOUR ....................................................................................................................... 20 4.0. Copper Mining -The Case Study of Zambia ......................................................................................... 20 4.1. Background on the Copper mining industry in Zambia ....................................................................... 20 4.2. Review of the Mining policy ................................................................................................................ 21 4.3. Tax regime and incentives for copper mining companies .................................................................... 21 4.4. Regulatory Framework for Environmental Management in the Mining Sector ................................... 22 4.5. Stakeholder identification and analysis ................................................................................................ 22 4.5.1. Primary Stakeholders ..................................................................................................................... 23 4.5.2. Secondary stakeholders. ................................................................................................................ 25 CHAPTER FIVE .......................................................................................................................
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