Zambia prioritises copper output over pollution control, heightening environmental risks, BMI says
Zambia’s antipollution measures are unlikely to lead to major pollution reductions as the government continues to place a higher priority on copper output growth, BMI – a Fitch Solutions company – said on August 12.
On August 6, the US government ordered all its personnel to leave parts of northern Zambia owing to ongoing health threats posed by heavy metals pollution following the collapse, in February, of a tailings dam in the area.
Zambian officials responded by stating that there was no cause for alarm and claimed that heavy metals concentrations in the affected river systems were steadily decreasing.
As it stands, Zambia faces a significant pollution burden in part owing to its large mining sector. This has led to some action by the government, such as fines and promises of clean-up efforts.
However, BMI said Zambia’s anti-pollution measures would likely be seen as a lower priority in Zambia and other mining producers, leading to an increase in related risks.
Markets in sub-Saharan Africa and Latin America would be most affected, BMI said, in addition to several other countries where the regulatory environment was permissive, such as Mongolia.
In many countries, BMI expected this trend to be accompanied by an increase in other risks, including Indigenous Peoples' rights violations and crime, reflected in the recent seizure of 4 t of mercury by Peruvian authorities, which was likely intended for use in illicit gold mining.
“Despite these risks, we expect growth in the mining industry across many markets amid rising demand for metals such as copper and gold,” BMI said.
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