Konkola Copper Mines (KCM) has announced that 1, 529 miners lose their jobs with immediate effect. However, Labour and Social Security Deputy Minister Rayford Mbulu when contacted said he was not aware of KCM move because the company had not notified the ministry.
Mr Mbulu said Government would wait for a notice from KCM on stating reasons for redundancies as provided for under cap 268 of the laws of Zambia before making an appropriate comment.
The move is line with KCM continued restructuring of operations in the company’s bid to move towards mechanization and automation in view of the decreased copper grades at some of its mines.
Company chief executive officer (CEO) Kishore Kumar announced the development at a media briefing held today at Nkana Flats in Kitwe.
Mr Kumar who was flanked by his vice-president human capital management David Kaunda and other senior staff said the process of laying off the 1, 529 employees had since commenced.
He cited the coming to end of the lifespan of some of the mines at Nchanga, principally the Nchanga Open Pit and the Nchanga Underground Lower Ore Body in the next three years as being the undermining factor behind some of these measures.
“Some of our mines at Nchanga, principally the Nchanga Open Pit and the Nchanga Underground Lower Body will be coming to the end of their mine life within the next three years.
“We therefore need to plan for this reality as with all mine closures. This is not new and has always been expected as advised by KCM a couple of years back. However, we need to take the necessary actions to manage this transition,” he said.
Mr Kumar said over the years, copper grades at Nchanga underground had significantly decreased, from an average of five per cent up to the 1980s, to three per cent in 2000 and currently 1.6 per cent, while open cast mine grades had dropped from three per cent to one point zero today.
He said there was need to note that current KCM productivity at eight tonnes per employee per year compared to global norms of 100 tonnes was unsustainable.
This was due to the fact that Nchanga operations were still using the costly conventional method of mining compared to mechanized mining, which most of the company’s global peers had adopted.
Mr Kumar said in the continuing restructuring of operations, KCM was moving towards mechanization and automation of all its operations to ensure efficiency and higher productivity.
He said new mines like Konkola deep Mining Project and the Upper Ore Body at Nchanga would be mechanized mines, compared to some of the current conventional labour-intensive mining operations and that hence would require a different labour profile.
Mineworkers Union of Zambia (MUZ) president Nkole Chishimba expressed disappointment with KCM management over its decision to downsize labour especially that the company had not communicated this to key stakeholders contrary to its claim.
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Oh my ! Now this is sad.My heart goes out to all poor miners affected by this cropping.
oh my what?? Wapya muzi!! everything is collapsing around your `boat`,,, i dont know if its still called a boat,, this shell is sitting on dry ground, there is nothing flowing
@ndobo it is “oh my !” because it is a big number involved and KCM didn`t consult government.But again the reasons the company has given for restructuring sounds reasonable to me because most companies tries by all means to maximize profits hence the decision by KCM to mechanize in certain areas as opposed to using human labour doesn’t come as a big surprise to me.Hey why are you blogging on a Friday mwana…i thought you are downing some Heineken`s or something by now ? I know i have mine beside the PC.Lol
Excellent! As a shareholder in Vedanta I warmly and gladly welcome this move. This move is good for the bottomline and positive for enhancing shareholder value. Best news of the year!
@Saulosi, did your Sata inform Zambians that he will fire or downsize “temporary” secretary Emmanuel Mwamba? So why does your PF government want KCM to inform them about their decision of sending Zambians into poverty?
KCM are just following PF culture…. ni mwachuleni.
It is best for businees. The government has also suspended recruitment for 2 year. This means more off loaded on unemploment line, and no space created by retirement i the next ten years due to adjustment in the retirement age. The more job provebial song remains fake.
Heh he he he he he ! more money in your pockets!
Mechanization and automation is inevitable for growing industries and sadly, jobs are always sacrificed as a result. Nevertheless, there are always other alternatives to reorganize the operations of the mines and protect against job termination. That way, a greater number of the employees can be retained.
Sad, anyway saw it coming, you cant mine forever
@Chale which Management Edition are you reading, is it from 1st edition you extracted that? How can you reorganise natural resources when it is finished? Minerals/copper is not like rain, if there is drought you may irrigate or dig a channel. Or cut a tree and plant another, with copper nga yapwa ninshi naipwa….
Why haven’t they automated and mechanised in the last 9 years also should they finish automation and mechanisation before cutting labour? I smell a rat! PF please consult with patriotic Zambians still on the mines
Just nationalise the damn thing! And make sure chaps like DK Lembalemba go with the Indians. Just like the Chinese, you will only get what they export to you: poor management and exploitation of local labour.
Get back the mines. mind games by KCM
Too bad and indians must leave and a serious investor must take over – first it was on contractors like U&M mining
At least they have done a better job that Anglo-American. Investors are not charities. Australia is also facing the same problems. South Africa is only saved by the fact that Gold is still fetching a high price.
There goes our natural resource. We have been swept clean underground. What have we benefited as a nation by selling the mines to foreigners? Nada. What is govt. doing to create jobs? Nada. On the other hand, may the people of CB feel the misery they have caused on themselves. Sata +KCM= No more money in your pockets
I hate to say this but we told you (Government) so a few months back but you through old man “papa smurf” Shamenda decided to give them more concessions…..we needed savvy public negotiators not these politicians from yesteryear. These foreign investors are too smart for them and literally playing them like pianos.
..we need savvy public negotiators
well if the copper is finished people shouldn’t complain!!!!!
KCM constructed and commissioned the new concentrator plant at Nchanga last year on which they spent millions of dollars to treat copper from NOP and NUG.
Three months ago KCM wanted to lay off 2000 employees the move which was strongly objected by the Government because of the weak justification they gave,sighting falling copper prices and high cost o f production.
1.If KCM new there was no copper ore at NOP why putting up such gigantic plants to treat ore from NOP??????
My appeal is that the Government must be very carefull with these indians.The fact is that these indians are not miners they are just business men who are avoiding tax issues
cutting down on Zambia workers and increasing more Indians. we see every day more indians coming but if copper has finished why these *****s continues to come in numbers in the name of coming to work for Onshore. And how can you get profit on one shovel on the pit doing the excavation and no activities and you expect to get copper when most Zambians workers are always threatens with dismissals. and if i may ask how much money does KCM has given to politicians because you don’t listen to what miners tell you about the ill treatment they face in the hands of these *****s
You Zambians destroyed ZCCM. So don’t complain. Shame on you!
That’s because our leaders are too corrupt and only care about their pockets- brown envelopes, TATA an Indian firm owns Jaguar Cars in the UK and offers one of the best condition in the manufacturing sector.
It is the reaction to the revoking of Statutory Instrument 89. Just get the mine back and send them packing.
And then what? Throw everyone out of work?
This has nothing to do with SI89. You people do you know your country? Kcm does not export concentrates. Infact revocation of SI89 is a blessing to kcm and mopani because they have the biggest smelters which are under utilised because of lack of concentrates.
That’s sad for the poor miner friends, but govt consult widely these huge tax holiday aren’t working Govt. is just loosing revenue,buy back some shares and control these mines slowly to just keep up with workers lives as Govt.
This is what happens when you privatize recklessly without retaining 51% controlling share!
Anyway what do we expect from foreign presidents? KK from Malawi, Chiluba from DRC, RB from Zimbabwe and MCS from Tanzania? Is it not true that Zambia is cursed? How can you have an abundance of natural resources and high levels of poverty at the same time?
Foreigners are looting this country big time because there has been no proper governance. Zambians have failed to govern themselves!
It’s the responsibility of the Government of the day to
save these jobs. That’s why we voted for you, we’re not
just ready to get back to the KOMBINI.save these jobs CHAPWA,
Nothing less or more.
The Govt knew as they as they are stake holders.The Govt have shares in KCM how can they not know.Bufi
Good lessons – some chaps at KCM were celebrating and campaigned for Sata’s lies of Wind Fall Tax, chasing chinese investors etc. You deserve this! Levy and RB resuscitated these mines after Chiluba’s administration sold them cheaply.
And yet not even a single so called Indian expat will be laid off or sent back home despite the fact that an average Indian expat earns an average salary of 5 Zambian employees. Typical animal farm. I have been there and done that. Worked for KCM Nchanga Smelter for a straight 2.5 years before I called it quits after seeing all the bull.s.h.i.t. going on.
this government doesn’t know basics of business, they are ripping off the mine owners through taxes, high electricity tariffs, high fuel prices and now toll gates. to make matters worse they are even ripping off workers taxes that they claim was under paid in the average of 5000k each. this means that this government lied to the people of Zambia that they will reduce taxes and that we were better of in the previous administration. please fellow miners lets do something and teach this government that we can bring things to a standstill.
Waaaaaaaah!
Good news,
Very soon the copperbelt will start “thinking” when doing things.
The money has been taken by the boat going to Lusaka, the choba of the boat has lost compass!
BA shamenda mwilabepa at u don,t know anything
Let the 1500 miners come to north western province and get employed by fqml,barrick, and Kalumbila. the new copperbelt
These Indians have failed to run the mines. Meanwhile govt is just watching.
more taxes
It has come just after the revocation of SI89. It could be a long term consequence since the company has projected delayed revenue in due course.
Copper is done then layoffs are normal course of action
RETRENCHMENT MAY NOT BE A BAD IDEA,THE ONLY ADVICE I CAN GIVE TO KCM IS :YOU SHOULD GIVE THOSE AFFECTED THEIR DUES PROMPTLY WITHOUT DELAY. I HOPE THIS IS WELL ORGANISED.BUT WHATEVER THE REASONS COULD BE, I DONT THINK THEY ARE BEING REALISTIC, IT IS JUST POOR MANAGEMENT. THESE INDIANS AND SOME SILLY ZAMBIANS HAVE JUST FAILLED TO RUN THE MINES PERIOD!
Bakaboolala. If the statutory instrument was not reversed they should have kept the workers. Viva abashing of the statutory instrument. Muleya bamwisa!!!!
They are cerebrating dewali right now lol!
@Zam cam,have ever seen the parliamentary report by Maxwell Mwela?Are you a geologist?Have ever heard of the cut off grade,debt to equity ratio e.t.c or assert right down.Perhaps this fcking company made bad investments that are not reaping off!The copper price at the moment is $7100/ton is that bad enough?Anglo exited at an extremely lower price!Think twice ashole!
Now it is true what Fred membe said in his editoria that they are Zambians paid by the mines to speak againist government policies.I urge every fcking Zambian who think and yet they are just being used like toilet paper to goggle Tabo mbeki’s report on how cooperate international companies have robed Africa.I wish we had a drone like USA to take out TAX evarders!
Right now I am being tracked by KCM because of my posts.But don’t ask how I knew but tell that fcking former intellengence officer they have employed to watch out.Traitor,did he even get a security clearance?