New projects such as the Konkola Deep Mine, Lumwana Mine and Nickel Mining in the Southern Province have come on board in addition to other mining initiatives going on in most provinces of the country. Another key development in the sector has been the revival of zinc production, once, one of Zambia’s metal exports in the 1970s. Sable Zinc of Kabwe (owned by Metorex) has commenced processing the mining dumps in Kabwe. Ladies and Gentlemen, although investment in the mining sector requires massive capital by large conglomerates, the majority of our citizens are increasingly involved in the sector  BIS Review 77/2008  1  through the supply of goods and services to support the mines. However, the main challenge to the growth of this sector has been the availability of finance. Most companies struggle to find finances to meet their contract obligations. The need for financing is immense especially as the mining sector is growing year on year and will need to acquire new equipment and spare parts as the mining companies invest heavily in the development of new mines. It is gratifying to know that the USD 50 million facility in favour of the Zambian Mining Services Companies being signed today, is expected to assist major players in the supplies and services sub-sector of the mining industry to execute contracts with mining companies.
For example, one would want to be certain that in no circumstance would management see a benefit from putting the firm into resolution in order to convert its debt holdings into equity. BIS central bankers’ speeches  3  jurisdiction, even in periods of stressful financial market conditions, without taxpayer funds, in a way that minimizes knock-on effect to financial markets and other financial institutions. As I have indicated in earlier speeches, I endorse the Federal Deposit Insurance Corporation’s (FDIC) single point of entry (SPE) resolution framework for the United States. For the SPE approach to be successful, firms subject to this resolution regime will need to have a sufficient amount of long-term debt at the parent company that the FDIC can convert into equity to guarantee that the new bridge company is adequately capitalized. Counterparties at the subsidiary level need to be assured that they have no reason to pull back from the new bridge company. In the international arena this type of requirement is referred to as GLAC, or “gone concern loss absorption capacity.” The Financial Stability Board is working on a proposal for an international GLAC standard, with a target date for consideration this November. Finalizing this standard is an important to-do item. As I discussed earlier, both the amount and the composition of additional resources are important.