Legal aspects of the marketing of Zambian copper

Abstract

This thesis examines the legal problems affecting the marketing of Zambian copper. In this respect, the thesis seeks to discover the real causes of copper price instability and the effectiveness of international legal principles and institutional measures employed in an attempt to reduce such instabilities, A study of this nature, demands a careful scrutiny of the various legal and institutional mechanisms governing the marketing of copper and international measures designed to regulate such arrangements. To this effect, chapter one of the thesis provides an introduction which seeks to set out in general terms, the nature of the problems faced in the marketing of copper. These problems are then examined in relation to their effect on the Zambian economy in general. Chapter two, examines the background and development of the Zambian mining industry with a view to highlighting the genesis of the copper marketing system employed by Zambia. Discussed in this chapter are issues relating to mineral rights, mineral taxation, and measures aimed at the control of the production process. In chapter three an attempt is made to examine the rules and institutional organization of the most important copper marketing and price setting institution - the London Metal Exchange. Chapter four, examines one of the intergovernmental machinery employed to tackle the problems of commodity price instability and the possible application of its principles to copper. Chapter five, evaluates the United Nations Common Fund which is designed to support the international commodity agreement mechanism. Of prime concern in the analysis is to discover how far its principles may go in supporting a possible international copper agreement. Chapter six is devoted to a discussion of one of the existing intergovernmental mechanism for the stabilization of copper prices. The discussion centres on the role and effectiveness of the Intergovernmental Council for Copper Exporting Countries (CIPEC). The second existing intergovernmental approach to price stabilization is discussed in chapters seven and eight. This approach involves some form of international financial support machinery which may allow developing countries that produce copper to maintain their export earnings even when demand or prices decline. There are two such schemes operating at the moment and chapter seven is devoted to one scheme which is operated by the International Monetary Fund. Chapter eight examines the second scheme operating under a treaty of co-operation between the EEC countries on the one hand and ACP countries on the other. Chapter nine suggests an alternative approach to the problem of stabilization of copper prices. This approach involves the creation of a Southern African mineral marketing corporation that could act as a sole mineral marketing agency for countries in the sub region associated under Southern African Development Co-ordinating Conference (SADCC). The final chapter provides a summary of conclusions.