1. LOCAL SUPPLIERS TO THE COPPER SECTOR SAFIC WORKSHOP LIVINGSTONE FEBRUARY 2013 PETER KRAGELUND Zambia Country Background Part 1

2. Copper supply history Artisanal mining British South African Company era No local suppliers Independence (1964) RST / AAC ‘Sprinter’ companies Zambianisation ZCCM 400 suppliers Privatisation 7 new companies New supply chains ‘suitcase traders’ Boom More investors Own supply chain

3. The Copper value chain I Within Zambia Mapping, geological & geotechnical surveys, and borehole drilling Conveyors, crushers, winches, vehicles... Blasting, Drilling, electrical and hydraulic equipment furnaces, dryers, smelters, refractories, tapping equipment / chemicals, lime, vessels Exploration Mine construction Ores extraction Smelting / Leaching Refining Shaft sinking, cement, steel frames, rails… Pumps, valves, vehicle wear parts, storage equipment, health and safety equipment, engineering Services, spares, components International, capital- and skills intensive OEMs National, lower capital- and skills intensiveness,

4. The Copper Value Chain II Outside Zambia Refining Fabrication Industrial Consumer electronics Electric motorsScraps Electric appliances Building & construction

5. Scoping study results Coppernet Solutions ICT services Ebsa Investment / Skycenter investments Trading companies Dochib Contractors / Elios / Jacma Enterprises / Oscat engineering / Powerflex / Rigid Engineering Engineering companies Rapchon Industries / Meltcast / Stalwart Manufacturing firms

6. Methodological implications for the survey Engineering and manufacturing firms most interesting  Value-addition  Relatively strong BAs Organised  ZAM / EIZ / ZACCI / ACEZ Capital intensity & production flexibility differ Can we use same criteria to define success?