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(Appendix No. 6)



Regional Socio-economic Structure

The Copperbelt province is rich in minerals such as copper, cobalt, gold and

gemstones and mining is a major employer in the province. Reference was made to

the "Zambia 2000 census of Population and Housing, Volume Two, Copperbelt

Province, Analytical Report” regarding the general socio-economic environment

around the project area.

The total working-age population (considered to be anybody from age 12 and above)

was 965,270 people of which 31% were between 12 and 19 years and another 35%

were aged between 30 and 59 years. Of this, 50.2% were male and 49.7% were

female. The rural working-age population is 18.4% and the urban working-age

population is 81.6%.

The economically active population (inactive population comprises homemakers,

students or others, such as pensioners, physically or mentally handicapped, beggars

and prisoners) disregards the inactive population and in 2000 the labour force

increased in the Copperbelt by 20.4% from the 1990 to the 2000 census. The

national growth rate in the labour force in Zambia (3.8%) is higher than the growth

rate for the Copperbelt province (1.9%) but this may change with future expansion of

the mining and service sectors in the Copperbelt region.

The majority of people working are involved in agriculture (126,345 people in 2000),

community (58,212 people) and mining (57,722 people). The total working population

in 2000 was 336,895 people. Other areas of employment are manufacturing,

electricity, construction, trade, transport and finance.

Ongoing Social Projects

A social liaison coordinator is responsible for the identification of social projects in the

area that can assist the local population. There are currently three social projects

being assisted by Kagem Mining Limited:-

1) The construction and erection of the Susi-Chuma statue in Livingstone;

2) The provision of medical assistance to Nkana Clinic at Lufwanyama; and

3) The Farmers Capacity Building Project. The provision of seedlings and

fertilizer to local farmers and the market for their produce.

4) Supporting local schools with infrastructure and study material.

The social liaison coordinator will be continuously developing further social projects

that promote the sustainable development of the local communities.

The local business will benefit from the operations in the form of ancillary mining

spares and consumable supplies, and allied services.