operations of the closed Luanshya Copper Mines-LCM.
President Rupiah Banda announced in Luanshya on Friday that the firm has taken over 85 percent of the shares, held by the former owners of LCM.
“It is now with great pleasure that I announce the sale of the 85 percent shares to China Nonferrous Metals Mining, commonly known as NFCA,” Zambia’s President Rupiah Banda told former Luanshya Copper Mines workers at a public meeting.
He disclosed that a government technical committee will enter into negotiations with NFC to work out issues related to the take over of the mine and the talks will be concluded by May 22.
The President said the new mine owners will start operations at Baluba Shaft on May 30 and will take over the development of the Mulyashi project.
Mr. Banda is happy that the new investors will also take over the running of Roan General Hospital and Luanshya Trust school.
He paid tribute to the people of Luanshya for their patience, which enabled government to come up with a credible investor for LCM.
The President said Luanshya residents resisted all calls to take to the streets and demonstrate over the closure of LCM.
Luanshya Copper Mines closed early this year after investors running the mine at the time pulled out, citing falling copper prices.
The LCM shut down the Baluba copper mine and abandoned the development of the 60,000 tonnes per year last December saying it had been making losses because of low global metals prices and other effects of the global economic crisis.
The LCM, which was a joint venture of the Bein Stein Resources Group (BSRG) and International Mineral Resources (IMR), also shut down the Chambishi Metals Plc, Zambia’s largest cobalt producer, and retrenched 1,700 miners.
[ZNBC/Reuters]
does this mean pipo get their jobs back
There we go again.
many pipo are on the steets bcos of mine closurs,as long as these guyz get their jobs bak,then hakuna matata
I hope the Chinese did a full and proper diligence study before moving in. Otherwise we shall be moving in circles. They dont pay well but a few 110k is better than 0
The move is welcome.Chinese have money(liquid cash resrves) than any other country in the world and its a good gesture tha,at a time when untrustworthy investors are pulling out,they(Chienese) have seen it prudent to pump in their money.Now our Govt should work to protect our workers from not being eploited and make sure they do meet their obligations.
The Chinese can run the mine but their wages are low
I am glad a Chinese firm was picked to run LCM.
China is the only country that has got hard cash to invest in any sector at the moment. They have over $3 trillion dollars in reserves and the whole world is itching to get their hands on those reserves.
China is also increasing its manufacturing output despite the global turn down. A Chinese firm is clearly the right firm to invest.
#4 Deja Vu I agree with you. A few kwachas for now is better than nothing. Its just that our govt system for now is broken, old and rotten. Its not a sin for the govt to ensure that employees in mining companies must be incetivised should copper prices go up so that in case of such unforseen occurences atleast the individual will have himself to blame if he did not put the incentives to good use. Why should the govertment and the investor only benefit when copper prices go up? Put the employees in the plan man.
#7 Its a good turn of events. Question is what are the conditions. I dont know where you are calling from, but those in Chambishi can tell you that the wages are too low. Only reason they are working there is due to lack of employment. In ZCCM hey days only desperate people would work for companies like Mpelembe etc. But when there is no meat, a lion will settle for grass.
#5 and #7.Spot on.I have no more words but endorse your comments.
China can have $3 trillion in cash but they have no morals.
Bwezani agwila Nchito (Bwezani has caught the job). At least Luanshya won’t be a ghost town. I like Luanshya, its a good town with lots of potential.
I am glad that the mine has gone to NFC. I was not for the idea of Vendetta Resources as these guys already own KCM which is the largest Mine Pa Zed. As for the low pay well, I agree with #4 something is better than Zero, but i hope Govt can try and press on them to pay better so that our brothers and sisters in Luanshya can start living decently again.
Good move but how many Chinese expertrates are jumping on this bandwagon? Zambia has been in the mining business since the colonial rule and today most Zambians have the experience any investor would need. The funny thing is that for one Chinese investor…you get 500 others-labourers etc. Are we indirectly helping the Chinese government in dispersing its population by accommodating anyone that comes in the name of investment?
Deja Vu
You have not even seen the conditions of service this firm is going to offer. You are simply lumping all Chinese owned firms based on select few which used poor wages.
The firm has not started operating yet and you have already jumped to conclusions.
To answer your question: what are the conditions?
My answer is “I don’t know because the firm is not in operation yet”.
It is like saying all Zambians are criminals based on a few individuals who have committed crimes.
Now that I have answered your question, answer these for me.
1. Is the firm that was running Chambishi the one that has been selected to run LCM?
2. What evidence do you have that the chosen firm offers poor conditions of service??
3. Which firm do you suggests runs LCM?
#11 inte028
I agree with you. In fact thats the way they collected $3 trillion in cash.
Diversification of investment sources is a better way forward, or else we shall become a provincial-level administrative arm of china.
Zambia will eventually become another part of china, the choncholis are all over the land trying to get each and every profitable mine. Their wages are too low such that take home pay cant even take you home.
careful with these guys.
I am a shiftboss(supervisor) at Chambeshi and my monthly gross earning is K850,000.
Therefore, majority workers below me earn less than K900,000. Be mindful that the cost of living in Zambia is very high.
#15 My dear man NFC is the owner of Chambishi Mines in Chambishi Township North of Kitwe as you go to Chingola. They have run this mine since 1998. They own BIGRIM explosives and Chambishi Copper Smelter. We know the conditions there and we dont see any thing better for their new mine. Yes there top Zambians who will defend NFC to the hilt because they are well looked after. However am happy for people in LY for at least they have some Kwacha to see them through. In Bemba we say insala taipaya uwatensha akanwa. So do not misread me. I only made an observation.
#15 Oh Idont think anyone can run Luanshya Mine in its current form. There are a lot of complications especially with the Shafts. Baluba is the only viable mine. Mulyashi is not openned but it offers the future if any one is prepared to develop it.
Deja Vu
Thanks for answering question 1 but question 2 and 3 still need some answering.
I have to go. Later everyone
Welcome to Zamchina.
Zed journalist should learn to balance their reporting. A bit of comments from the opposition, mine workers unions etc can be included in this article so that Zambians can be better informed. I am sure there are various views over this sale.
As for the sale itself, this is good news for Luanshya. At least someone will have a job. It is better than nothing, thou this should never be an excuse for low wages. It is an excuse within China herself due to their huge population.
In any case, the mines have always paid low salaries. At least Zccm compensated this by free housing, healthcare, mealie meal, water, electricity and education etc
I knew that we are going to give the Chinese this mine? Does it mean wealthy Zambians are incapable of investing in their own mines? RB, Maureen Mwanawasa, Lupando Mwape & all are slowly selling Zambia to China. What a sad development. It’s only in Zambia under MMD that Zambian genuine investors are discouraged to invest in their own mineral resources at the expense of Chinese & Indian investors who are investing to make their own profits. I am challenging all those wealthy Zambian businessmen & women such as HH, Sata, Ben Mwila, Kavindele, Maureen Mwanawasa with the millions you have syphoned to re-invest your money in Zed. Form a consortium & start investing in telecoms, mining, agriculture, retail, manufacturing, tourism and not wait for Chinese or anybody for that matter
#22 Freemarket. I have answered all 3 only I havent numbered them, I have even given reason why LY is a tough proposition. Overall its something for our People in LY
I hope the Chines Investors will pay the miners decent wages. Its not a question of takes over the mine but being responsible to the mining community. From this Governemnt leaders and the oppostion should WORK TOGETHER for the good of the common man.The problem that we have as a nation is we are not good negotiators, look at the Chinese are level headed and skill. The other problem is with technocrats charged with national responsibilities they negotiate slowly and have a tendancy of ma “cuts” and the investors take things for granted just coz some senior officials were oiled. No wonder they boast that you can go and report anywhere nothing will happen to me. This your country but money is ours.
Did any South African company bid for the mines?
South African mining companies would be a good option.
zhonguo ren you qian.
We seem to think we can only develop with foreign investors. While foreign investment is vital, we need to change our mindsets & start taking Zambians with enough capital seriously. I still feel our mines will have great meaning if Zambians where allowed to own stakes in them & not look to foreigners to put our house in order. We need to be at the forefront of lifting ourselves before anyone can assist us. In Zambia it is the other way round & that’s where we need to start from. All we know & like in Zed is bragging with money we don’t have and wanting to please people who really don’t matter… Wake up Zambian youth and reinvigorate the entreprenuerial spirit that is inside many of us.
#27 AMBWEZI- Our gvt seems to have a problem with local investment. Remember that at one time a Zambian Consortium bid for ZCCM as Kafue Consortium. This group was made very prominent businessmen and industrialists. Chiluba refused and instead sold the mines to foreigners most of who have run away. LPM did the same by selling LY to JW who are not a mining house but are simple traders. The Chines can make it because they are gvt owned and use very cheap labour both Chines and local. Like I said lets pray that our people are not traumatized once again.
This is not news. One Chishimba Kambwili Luanshya MP anounced on radio Chengelo about a month ago and informed the nation that some big fish had already been greesed and that Luanshya Mine was going to be sold to the Chinese. Chinese workmen/prisoners will take over jobs at Luanshya Mine. I deliberately dot not want to talk about wages because it is anybody’s guess.
#34 Musange- You are the only one who understands what I ve been hinting. Am sure you are on CB. Most who are supporting are abroad.
Stage 1-We awoke up one morning in the early 1990’s to find that government Department had been targeted for “restructuring”
Stage 2-The catch word was corporatisation.The clever folk explained to us that this would increase efficiency.We said oh good.
Stage 3-We awoke a few morning later to see a new word in the paper.It was privatisation.The learned ones told us that this would increase efficiency,we said good.
Stage 4-We awoke and upon reading the morning paper,i see a new word apear-SHARES.At this point I smelled a rat.
Lets hope they’l improve on the conditions of service. Pantu ……
Lets hope they’l improve on the conditions of service.
1.Restructure Government Department
2.Corporatisation
3.Privatisation
4.Shares-initially only 49% overseas
5.Shares- increase to over 51% overseas
6.Investors from overseas
Notice now,that without these investors,Zambia will collapse economically as you have been already cleverly conned into the selling up your major assets.
Good move RB for that one, at least we have an assurance that another group of uneployed will have a formal occupation.
But, although I have been seeing NFCA owned mine along kitwe – chingola road for some years now, I can confess that I personally, know nothing about the company.
#24. Indeed this is Zamchina
Good move RB for that one, at least we have an assurance that another group of uneployed will have a formal occupation.
But, although I have been seeing NFCA owned mine along kitwe – chingola road for some years now, I can confess that I personally, know nothing about the company. yyy
Chinaman is another big blunder of a choice…..
Poor Luanshya. Pimped yet again.
We never learn. Chinese chaps don’t give a f…….k about workers condition. Its not long ago when we lost our Brothers in one of explosive making company owned by Chinese in copperbelt.
This was expected. It’s a shame but the truth is that we are at the mercy of foreign investors because Zambians have failed to manage their own resources. No need to cry once they leave with everything.
It’s good that a Chinese co has been selected after all China is the major consumer of copper they’ve liquid cash.It is also logical to say that better to have people working and earning a salary than having a ghost town full of loafers crying for help from the govt.Most investors only want to reap maximum profits especially when the market is gud.The price of copper has gone down so few investors will fancy investing in copper mines as it is not a viable investment anymore. ABWENZI,you’re right about Zedians taking the initiative but you forget that this is not a small scale investment,this is major investment that requires major capital,i doubt there is any bank in Zed that would be willing to finance such an investment on its own,the risk is great.
The only way that Zambians can benefit from it’s own products & running the mines themselves is when there is a revival of the manufacturing industry at least then the copper would have to be used within the country & the surplass exported but we export raw material at a low price & import finished products at a high cost.Most manufacturing firms died during the structural adjustment programme & the govt made no effort to cushion the impact coz they were equally incapacitated due to losses in the mines & ineffective tax authority & to run a proper tax system.We can all cry foul but i think the govt is doing its best,i only hope they put to good use what was realised whenthe price of copper shot up,am sure it will again.Am also glad the kwacha is gaining strength again.
# 15 NFC does not pay well. their wages are so bad that people usually run away from them. am not happy that it has been won by NFC. I hear KCM wanted it too. they shud have given it to them. they are better than these felaz
#7 Free-Market-Economist
You are right on the gong. There are Africans in general and Zambians in particular who are reverse racists. They think if it is not a ‘white’ muzungu, it is not good. Every progressive country in the world today is courting the Chinese. We are in a better position because of our friendship with them going back over many years. We should realise that these guys civilization goes back thousands of years and Marco Polo pinched a great deal from them. Mandarine and Cantonese are favourite languages to learn in UK. Why? The west has realised that all economic roads lead to China. It is the third largest economy in the world today and it has notched more than 6% growth year in and year out.
The Chinese compensation packages may not be as lucrative as capitalist companies. But to have high salaries and high employment rates is like having your cake and eating it. Obama commended people in Chicago who took pay cuts in order to have their comrades remain in employment. The western managers live in huge former ZCCM houses with swimming pools for a family of four, but the Chinese are happy to share accomodation. It is in their blood not to be extravagant but hard working. Let us learn a few things from them.
Though the Chinese give slave wages they’re able to invest and keep things moving. The backbone of LCM is the development of Milyashi as soon as possibe & only NFC has the capacity as at now. KCM is still struggling with the completion of KDMP and has to get returns b4 embarking on another major project like Milyashi. Next GRZ should be sold to the Chinese
Is it the Chinese that create and pass legislation on labour laws in Zambia or it’s the MPs you vote into power who are suppose to come up with good labour laws that guarantee the working class in Zed particularly miners a living wage? Come on now! Our labour laws are weak and probably the weakest I have ever seen in a developing world. We seem to be good at passing blame without acknowledging that any capitalist that comes to Zed, white, black, green, yellow etc will exploit our weak in many instances non-complied with labour laws. The opposition parties when they have majority have failed to bring up labour legislation that protects ordinaryt working class Zambians. So talk of wages should be directed at what the labour & mines minsters are doing when they negotiate the sell of mines
Zed & DRC are probably the 2 countries in SADC where miners are not guaranteed a living wage despite politicians saying the mines are the largest export earner to the country’s economy. In SA & Zim (before the trouble started) the governments in those countries passed legislation which guaranteed a living wage for their citizens cause of the strategic importance of the mining industry in to the economy. All mines in the 2 countries are owned by state & only exploration rights are given to investors. So why can’t we learn and develop something similar that is sustainable for Zed? The answer is simple, we have desperate & most importanly recycled, corrupt politicians who are serving their pocket first before the country & the office they are suppose to serve. We owe it to ourselves to…
ZCCM paid well but it went under. No one has asid anything about what LCM paid, but Im guess not worse than zCould it be that we have overrated ourselves in terms of wage expectation/ Just a thought.
ZCCM paid well but went under. No one has said anything about LCM wages but the silence indicates that they were not worse off than ZCCM., and LCM went under.
Could it be that we overrate ourselves in terms of wage expectation? That for the kind of cost and income from these mines, the mines cannot pay well?
The RB did not take all the Concerns into consideration. We have alot of chines investors.
Concerns
Poor salaries.
Chines does not take local suppliers and contractors
Supply Chain.
Compare Obama’s thinking to that of RB. Obama is concerned not only to employees that will be directly taken by the LCM investor but also the Value it will add to the Economy through the Supply Chain.
This chinese company has borrowed over U$400m from Standard Chatered Bank in Zambia to start operation in Luanshya. How come? I thought they would come with money from China.
60 Ubuntungwa mu
Interesting piece of news you’ve got there.
History repeating itself. Kwena ubuteko tesana. I agree with you guys…we are not good negotiators. I can even imagine the scene. Tough looking Chinese on one side …embarassed looking Zambians on the other just faltering on each others words. It sucks. But so here we go again. What do we do? We grit our teeth and while the Chinese do whatever, we have to begin to restore the town ourselves. We have to start making ourselves valuable. Americans tell themselves they are the best until they believe it and the whole world eventually figure that well, mmaybe there is some truth to it. We’ll do the same for Luanshya until we beliveve that Luanshya is valuable and everyone else does too. Good Luck Luanshya. You still rock!
I would just wanna say that its unfair to criticise China for wage, low or high, it is the resposibility of a countrys goverment and laws to enforce that wages and work conditions are appropriote, not to the individual companies investing in your nation, Chnese companies desnt only invet in 3rd world natons but are also a major investor in western nations in North america and europe, I doubt that they are paying the same wages there as they are paying in Zambia, why is it different? Not be cause of the investing foriegn companies, chineseor european, its because of lack of regulation and laws, but its all about balance though, if you put too high standad of wages and work conditions, there wont be too many intrsted in investing in your country anymore.
I need your help to make understand something. I am not an economist. How come we let the investor get 85%? To me it is like giving everything to them with nothing left for us. We have to be mindful that the price for copper will rebound in not too long a time. Consumption for this commodity is steadily rising with population growth. The manufacture of electronic goods, copper wire, copper bushings, and copper pipes is similary increasing. If as a nation we are going to raise revenue from our natural resources, the way to go is 49% for Zambia and 51% for the investor. This is where I stand as a proud Zambian.
#64 Developer: Usually the GRZ does not have money put in the Mines but as owners of Mineral they have to get a GOLDEN SHARE of 15% without paying a single Dollar.
This is for you #65 Deja Vu. Do you think 15% is good enough for our poor country? In comparison to our annual expenditure, are we able to break even? As you know, our tax system has not gotten to a level where three quarters of the population is able to pay taxes. We can’t also just rely upon non-mining businesses which are few in number. My worry is that someday, we shall run out of the natural resource. Thereafter, only the high consuming countries of the purified natural resource will benefit from it since they can always recycle it. Where shall we be and what can we do?
#66 Developer; Remember this 15% is free and the buyer(NFC)are the ones who have paid 100% to purchase LCM. They are the ones who will inherit all the liabilities and pay salaries. GRZ could have bought the mine if they had the means and own the mine 10%. A beggar has no choice and this is the situation GRZ finds itself in. As for resouces coming to an end- I doubt, you know Luanshya started production in 1920s and copper has not finished except that to get it you have to mine deeper(Shafts). We have a lot minerals to last us centuries, what we dont have are the means to exploit them ourselves. Europeans are lucky in that their gvts assist them, like Collier the one who discovered LY was sponsored by HM’s gvt to exploit this part of Africa. Even Colombus who found America had help from…
the Spanish Government(King). Even now you can see the interest Western governments have in research. Not us- I remember a certain student(HAchinzobolo?) at ZIT now CBU who invented a complicated electric train. He appeared several times on TVZ appealing for help to enable him develop this machine but he never got it. Like Cassius told Brutus(Julias Caesar): The fault does not lie in our stars but in ourselve for we allow ourselve to be weakilings to be strided over in the huge legs of Caesar whom we have turned into a god. Imagine these people came all the into the unknown interio of Africa and managed to make wealth right under our noses. They are still doing that even after more than 500 years in Africa.
AAYO BIG PROFITS WILL BE SHIPPED TO CHINA.. WHERE DOES ZAMBIA’S PRIDE LAY? WAPUSA