Coal mining companies have bemoaned the lack of market for their produce as prospective buyers continue importing the commodity.
The two major coal producing companies, Chinese Collume Coal Mine (CCCM) and the Maamba Collieries Limited (MCL), both located in Southern Province, are facing serious challenges of finding market for their produce, a situation that puts the future of their employees at stake.
CCCM Shaft Two Director Xu Zian Rui told ZANIS that washed coal was being stored in its mining area with only a few customers from Lusaka going to buy a bit of it.
He said the state of affairs was affecting the workers who were being told to stop working once their storages were filled.
Mr. Rui said that currently the company has reduced the shifts from three to two to avoid over production since there was no enough space to store the coal.
He disclosed that Largarge PLC (formerly Chilanga Cement PLC) was still buying coal from Zimbabwe.
Mr Rui said that the company had enough coal for sale and urged the Zambian companies to be buying from them rather than going to Zimbabwe were they incurred more costs in transportation.
At Maamba Coal Mine thousands of coal had been heaped and there were no customers to buying it.
The situation has affected the workers as they have not been paid their salaries for two months.
ZANIS
Well this is a no brainer. Am not surprised. They have direct orders from RB to import coal from Zimbabwe his birth place. The motto is support your local economy and RB is doing just that. Good luck guys, try after 2011 and hope RB losses
Even though I’m not a proponent of trade barriers, this is silly. GRZ should sit down with ZIM and hammer out this coal issue and appropriate quotas, Importation levies(taxes + duties), Fuel and road usage levels specifically for coal carrying loads. there many direct and indirect (subtle) ways of competitively protecting ones business interests. Of course this is after correctly assessing the gross demand for the commodity in both Zambian Markte (mines+cement+sugar+other) and the huge DRC market, and honestly assessign the development stage of our mines old and new and their ability to deliver J.I.T avoiding down time problems from non-delivery. and of course all the litigations that would follow.
But then I doubt RB is even looking at these numbers and strateguies to exploiting our own esources, saving the much needed USD being externalised to ZIM. he just doesn’t have the acumen to head teh business of Zambia. 2011 couldnt come more quickly
#1-3
Don’t forget that we have a free-market system in Zambia. It is not the government’s job to tell consumers where to buy their commodities from and thereby directly intervening in the competitive environment. This would only lead to arbitrariness and injustice in the region.
#4 You are right. Free market system. We are also in a Free Trade Area so import barriers are low if not zero. Competition favours the strong.
What is Felix Mutati and his counterpart at Mines Maxwell Mwale doing about. You cant let local miners of coal failing to find a market for the product with the mines, Zambia Sugar, Zambian breweries, Lafarge Cement etc. Order that once the current orders are fulfilled then source locally. Its also a reminder to local coal miners to jack up their operations in case they fail and this will result in disruption of production.
Thats why ALL countries now employ indirect tactics.. ALL countries in the EURO ZONE or any otehr Economic union pull off something one way or another. Duties & direct taxes are not the only tool. besides we have a FTA not a Customs unions so every member state currently etermines its own poluicies regarding Import taxes and local industry protection. and commodity to commodity deals are left between member states to agree. E.G GRZ and and ZIM govt have now agreed SUGAR quotas for Zambian sugar export into ZIM, previously barred by huge uncompetitive duties and direct restriction. Such agreements are the role of Governments- Tofacilittate global trade. these are basics uys we shouldn’t argue on these. Our industries are in their infancy and need protection..
to summarise. COMESA is a Free Trade Area NOT a Customs Unions as is the EU, because member states in the former are saying that they dont have the developed industries ready to compete on global scale, that Importations are a key source of GOVt revenue and that their industries require a form of protection if to survive and grow, and keep their people employed, otherwise no SADC country would compete with South African Firms. who would wipe evry firm in ZAM, BIM, BOTS , MALAWI out.. so our arrangement is a Free trade one. taxes an Duties are left to agreement by member states, commodity by commodity.
Like “Investigator” says Mutati, Max Mwale, Musokotwane & Criticles Mwansa should get off their arses and sort this out and do some work for a change!!!!!!!!!
Honestly, we all believe in a free market economy but you have to do it in a way that it also protects sectors in the zambian industry that employ Zambians and contribute to the Zambian economy. The local Zambian people not Zimbabwe pay their taxes to the goverment. The goverment can use this tax money for infrastructure, schools, hospitals etc It is amazing why this has not been addressed as a priority as it affects the livelihood of people and can bring revenue to the goverment. Where is the management on this one ? I see more begging of donations in the local news than building up and supporting of local industries like this
There is nothing wrong with this arrangement. Normally supply of coal comes with a long term contract. Also the integration of the coal supply is good for both countries as it ensures security of supplies. There is nothing stopping them from exporting their coal to Zim and other countries.
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Good reading. What is the current status on this issue? Have the problems of lack of market continued or have been addressed. If addressed it would be interesting to know how.