THE Government has called on the Chinese investors to consider setting up processing plants in Zambia to add value to various raw materials derived from the country's natural resources.

Lands Minister Peter Daka said in Lusaka yesterday that the semi-finished and finished products would broaden the extent of Zambia's penetration on the Chinese market.

Mr Daka, who was speaking during the 60th anniversary of the founding of the People's Republic of China that falls on October 1, said the move would further help Zambia to take advantage of the tariff exemption facility that had been put in place.

"A considerable increase has been recorded in the number of Zambian traders sourcing goods from China in the last few years.

"I therefore, urge Chinese investors to consider establishing processing plants in our country in order to add value to the raw materials derived from our country's natural resources," Mr Daka said.

He said the bilateral relationship between the two countries had transcended into strong bonds of friendship and development cooperation in fields of communications and transport, water and sanitation, construction, education, health and mining.

Under the umbrella of development cooperation, he said, the Forum on China-Africa Cooperation (FOCAC) had become an important platform for collective dialogue and pragmatic cooperation.

The FOCAC meeting was held in October 2008 and Zambia implemented its recommendations aimed at scaling up political contacts, diplomatic consultations and exploring new forms and areas of cooperation.

Mr Daka said, from FOCAC, the Chinese investments had grown close to US$800 million and that there had been a steady expansion of financial cooperation.

"The volume of the Zambian-China trade has also swelled significantly since the endorsement of the tariff exemption for 466 export commodities," he said.

The minister also said Zambia would continue to support the role China had played in the United Nations Security Council towards the maintenance of world peace.

Chinese ambassador to Zambia, Qiangmin Li, said more than 300 Chinese companies in Zambia had increased the total value of Chinese investment to Zambia from $500 million in 2006 to $ 800 million todate.

"A friend in need is a friend indeed. We are happy that our brother country Zambia has established a more close, constructive and friendly partnership with us," Mr Li said.

He said he was happy that Chinese companies had taken over Luanshya Copper Mine and the Munali Nickel Mine that he said would open next month and create more than 1,000 jobs for locals.

With the concept of common development, he said, there was need to join hands together during this recession period to develop the two countries further.