Mines Union of Zambia President Joseph Chewe prods government to expedite Konkola Copper Mines liquidation…as Richard Musukwa vows to protect Zambian interests
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Mines Union of Zambia President Joseph Chewe prods government to expedite Konkola Copper Mines liquidation
By Derrick Sinjela and Luswepo Mutepuka Kwilanzi News Zambia
MINES Union of Zambia (MUZ) President Joseph Chewe is urging Government to expedite the liquidation process at Konkola Copper Mines, as doing so is in the best interest of miners and surrounding communuties.
In May 2020, the Zambian Government filed an official document before the Lusaka High Court indicating interest to commence the liquidation of assets at Konkola Copper Mines (KCM), the world’s wettest mine, majority-owned by Vedanta Resources, an Indian firm.
But Mr. Chewe says there is need to normalize operations at Kokkola Copper Mines so as to restore certainty among the workforce spread in Chililabombe, CHINGOLA and some party’s is Lusaka.
Despite government appointing Milingo Lungu, a distraught Mr. Chewe says the pace at which ongoing liquidation is proceeding does not guarantee certainty thus the reason why government took the matter to court.
But during a Tuesday 15th September 2020 meeting with Mining Suppliers and Contractors, Mines and Mineral Resources Minister, Richard Musukwa said the speed will be determined by how soon the matter at hand is concluded by the Zambian High Court.
Born on Saturday 28th November 1970, Musukwa holds a Bachelor’s Degree in Development Studies and a University Diploma in Science and Mathematics. The PF Mobilisation Chairperson is a scholar, miner, trade unionist and Development consultant.
Musukwa served as a PF Member of Parliament for Wusakile Constituency on the Copperbelt from 2011 to 2016. In 2016, he was elected Member of Parliament for Chililabombwe Constituency on the Copperbelt and was consequently appointed Government Chief Whip in the House of Parliament by President Edgar Chagwa Lungu.
In 2018, the straight-talking Musukwa was appointed Minister of Mines and Minerals Development, a position he currently holds.
On Thursday 16th July 2020, Glencore’s Zambia subsidiary Mopani Copper Mines said the country’s mines ministry rejected its proposal to suspend operations because of low copper prices and disruptions caused by the coronavirus crisis.
And Mopani said it would appeal against the decision and will continue mining operations pending the outcome of the appeal process.
Operations were halted at its mines at the start of April, with Mopani citing the COVID-19 pandemic and other problems, but mining resumed a month later after the decision sparked a backlash from the Zambian government.
“Mopani remains of the belief that the only way to protect the company’s value and preserve the option to deliver its growth projects when conditions further improve is to transition the operations to C&M (care and maintenance),” Mopani said.
Zambia’s mines minister, Richard Musukwa, said the government had made it clear from the beginning that it wants Mopani to continue and said he was happy Mopani had “responded favourably” to his call not to place the mine under care and maintenance.
Musukwa said that Mopani has cut the number of expatriates working at the mine from 94 to 49 and the company will address concerns over what he described as its high cost of production.
“We are open to dialogue because we want what’s best for the people of Zambia and Mopani is strategic to [our] economic trajectory,” said Musukwa on Friday 17th July 2020.
Mopani Copper Mines, which produced 119,000 tonnes of copper in 2018, is 73.1% owned by Glencore, 16.9% by First Quantum Minerals and 10% by Zambia’s mining investment arm ZCCM-IH.
Meanwhile, flanked by Mines and Mineral Resources Ministry Permanent Secretary (PS) Barnaby Mulenga, Musukwa said a technical team had been constituted and is in negotiations with Glencore, following ZCCM-IH’s decision to increase its shareholding in Mopani Copper Mine.
Musukwa is elated that negotiations between Glencore and ZCCM -IH are steadily progressing.
The negotiations come after Glencore decided to put its assets in Zambia on care and maintenance, a position government vehemently objected.
Musukwa said this when the Association of Mine Suppliers and Contractors of Zambia paid a courtesy call at Government Complex in Lusaka.
And Musukwa said Konkola Copper Mines -KCM- has continued to operate and government is dismantling the debt owed to contractors and suppliers, following the liquidation.
Meanwhile, Association of Mine Suppliers and Contractors President, Augustine Mubanga commended government for revising the Mines and Minerals Act.
Mr. Mubanga has explained that this will make it easy for local contractors and suppliers to participate in the mining sector.
Mr. Mulenga explained that the revised Mines and Minerals Act was at the Ministry of Justice, being interrogated by a team of legal drafters.