Zambia's finished copper output rises by 12 percent in the first quarter of
2008. Zambia pegs its hopes for poverty reduction and economic development on
copper production, the country's main export.

CHINGOLA, ZAMBIA REUTERS -

Zambia's finished copper output rose by 12 percent in the first
quarter of 2008 over the same period last year to 128,913 tonnes, despite
flooding at some major mines, the central bank said on Monday (April 28,
2008).
    Bank of Zambia (BoZ) Governor Caleb Fundanga said cobalt production
also climbed by 26.9 percent to 1,150 tonnes during the same period.
    "This is explained by increase in copper and cobalt earnings.
Copper earnings increased by 3.2 percent while cobalt earnings increased
dramatically by 36.9 percent," said Fundanga.
    However, Fundanga said copper output of 128,913 tonnes was 8.9 percent
lower than the 141,077 tonnes produced in the last quarter of 2007, due to
floods in the first quarter of this year.
    Zambia earned 886 million U.S. dollars from exporting the 128,913
tonnes of copper, 34.7 percent higher than the same period last year, due to
higher metals prices.
    Meanwhile, the country's national maize stocks have recorded a 44.5
percent decline in the first quarter of 2008, standing at 321,195 metric
tonnes from 578,266 metric tonnes at the end of December 2007.
    Fundanga said the reduction in maize stocks during the period under
review was a reflection of the seasonal pressure on maize grain.
    The stock of maize grain by the milling companies has also drastically
reduced, signifying the recent increase in prices of meal on the local
market.
    However, the country would have enough maize stocks at the end of the
harvest season despite some areas recording total crop failure resulting from
flooding experienced in the 2007/2008 rainy season.
    "If we re-position ourselves to utilise our natural resources
properly, we could indeed become the bread basket that we often talk about.
So, the challenge that we want to put to Zambians really is not to complain
that now this food shortage will hit us but to position ourselves
strategically so that we can produce more," Fundanga said.
    Copper exports earn mineral-rich Zambia the bulk of its foreign
exchange and the vast copper mines are the southern African country's major
employer.