Photo: File
INTERNATIONAL - Mining firms in Zambia on Monday welcomed a proposal for the establishment of a cooperation agreement in the mining sector between Zambia and Argentina.

Last week, Zambia's ambassador to Argentina Alfreda Kansembe-Mwamba called for the signing of a cooperation agreement with Argentina in order to enhance cooperation in the mining sector.

Sokowani Chilembo, chief executive officer of the Zambia Chamber of Mines said opportunities abound for the two countries to learn from each other especially on mining policy and regulation and the effects policy environment has on mining investment and economic growth.

He said figures showed that policy which encouraged investment had worked well for Argentina which was now positioned as a genuine mining destination for the start in stark contrast to the position in Zambia where an emphasis on short-term government revenue generation has eroded the country's standing.

According to him, while Argentina's investment in mining exploration has swollen to $200 million a year since the removal of investment disincentives in 2015, exploration activities in Zambia have slumped to 10-20 million dollars from a high point of $100 million a year due to inconsistency in policy and tax regime.

XINHUA