THE China Non-Ferrous Metal Company/Luanshya Copper Mine (CLM) is set to inject an additional fresh investment of more than US$150 million in the rehabilitation of Luanshya Mine, which commences production on December 14.
And Mines and Minerals Development Minister Maxwell Mwale said the Government was impressed with the manner in which CLM had introduced the new mining technology replacing the 1930’s technology.
Mr Mwale said replacing the 1930 technology would lead to a situation where the mine would now start rocovering 93 per cent of copper which was being lost under the old copper ore processing method.
Meanwhile, Labour and Social Security Minister, Austin Liato said he was impressed that the CLM management and the unions had signed the recognition agreement and were now chatting the way forward in signing the collective agreement.
CLM chief executive officer, Luo Xingeng said in Luanshya yesterday that so far, his company had spent over $30 million in the rehabilitation of the mine and replacement of equipment and by the end of the year, $42 million would have been used on the development of the mine prior to the commencement of production.
Mr Luo said although the mine had not started actual production of copper, it had recruited over 2,250 employees despite the company having earlier projected that it would recruit 1,700 employees. The lowest paid worker at CLM gets a monthly salary of K1, 224,000.[quote]
Speaking when Mr Mwale, Mr Liato and Copperbelt Minister Mwansa Mbulakulima toured the mine’s concentrator and the Muliashi Mine project sites yesterday, Mr Luo said the CLM management and Mineworkers Union of Zambia (MUZ) and National Union for Miners and Allied Workers (NUMAW) were coordinating well.
Mr Luo said although the mine had engaged more than 37 local and foreign contractors, most of the qualified personnel working for most of the former contractors had been re-engaged by the mine.
He said the CLM had over the past six months been undertaking the rebuilding and rehabilitation works of Baluba Mine.
“Already we have done the necessary preparations of viability of the conditions needed for production. We are scheduled to do the first blasting of the copper pre-underground on December 14,” he said.
Mr Luo said the mine’s concentrator was undergoing a complete overhaul with all the five crushers being replaced by modern ones and so far, three out of five had been replaced while two new crushers were still in transit.
He said the hard work being exhibited by the Zambian workers was helping in enhancing production at CLM.
CLM deputy chief executive officer in charge of technical services, Robert Kamanga said all was set to ensure that the Muliashi Open Pit Mine project and seven oxide camps were made operational next year.
Mr Mwale said the Government was impressed with the manner in which a lot of work had been done at the mine within a short period of time.
He said the rate at which the mine was being developed had left those doubting about the viability of Chinese investment with no option but to join those who wanted to allow the Chinese to work with the Zambian people as partners in development.
The minister said there was need for all those working on the mines to ensure that the Zambian and Chinese cultures converged to all the people from the two countries.
Mr Mbulakulima said construction of a 7.6-kilometre-long tarred road from the mine’s offices to the Muliashi mining site at a cost of K8.2 billion, which was being incurred by the mine even before the commencement of production, was a clear testimony of how serious CLM was as an investor in the mining sector.
I have seen this investment with my eyes, keep on China-town!
What is US$150m given the scale of mining operations? Nothing to talk home about. The mine was even sold for a song! These infestors will even reap more given the soaring world copper prices. Dont be always impressed by little! This is nothing!
This is welcome however I hinestly dont know how much US $150 m is in mining . So I wont comment. However Zebron, its worth noting that the mine was sold for a song because it had low market value. The government only received three bids and this is a high cost/ low profit mine. Thats why it is normally in problems
Its Just a drop in the ocean!!!!!!!! what is $150M gona do?
#2 & #4 you call this Just a drop in the ocean. Ask Kambwili about that and how the $30m has changed the mood of the town that thought it was going to go the way of Kabwe. Learn to give credit where it is due. Go to Luanshya and ask for yourself. Things are now different Roan people have a new song in their heart. This will be their best Christmas ever since the word privatization was introduced in their vocabulary. The Chinese investors have exceeded everybody’s expectation and my friends $150 million is not small change even to the richest man or country in the world.
# 3 $150 million as a cost in mining is minimal. Maxwell Mwale should know this very well or maybe maybe he was never in management so he just knows to extract the ore. The mention of the figures should not scare people they should tell us exactly what projects they have undertaken. What 1930 technology has been changed? A few days ago a loan with the Japanese to rehabilitate 12km of copperbelt roads at $23 million was signed. Today Mbulakulima says the Chinese will tar 7km mulianshi road at K8 billion. Can these people be serious with the figures they tell us, we are not *****s.
# 5. $ 150 million can be alot of money but it’s not something to pop your eyes over when yo talk about mine operations. Mines have turnover in hundreds of billions of US$. Moreover you should be talking of how much of that $150 has remained in Luanshya, then you will convince me that there is development owing to the Chinease or any other investor.
Am sure Kambwili is not complaining about the $150 million the Chinese are putting into the mine. Yes it is true that mining companies make billions of dollars but lets not forget that this is a single mine. In that sense $150 million for a town like Luanshya is not something to be laughed at. Lets not forget that only a couple of months ago the mine was going to be shut so what more do people want?
Suppose the Chinese did not buy this mine, what was going to become of the mine and Luanshya. Ladies and gentlemen, lets appreciate what other people have done for our people. Whether $150m is a lot or nothing is not an issue.
The issue is, have the people of Luanshya been blessed by the coming of these Chinese investors? It’s all about people’s lives. Some of us are critisisng from the comfort of our jobs, and we have not done a thing for those jobless and suffering people in Luanshya. If you asked me, the people in Luanshya would rather have the Chinese than you. What value have we added to these poor people. Nothing.
I support whatever benefit and hope the Chinese investment has brought to people in Luanshya.
These guyz are just too many and puting their investments in Zed is viable coz most of them do not think of going back to their country, profits are maxmised in a country where they invest. China has population of 1.7 billion by April, 2009 with limited land left to accommodate its people. So the more chinese investment in a country the more profit maxmisation the country benefits.Plz go go China.
# 8 exactly my point how does the $150 trickle down to the locals in Luanshya?? You are talking about infrastucture at the mine. I will tell you for instance the former owners of LCM had a deliberate policy of giving first priority to supllier companies that are from Luanshya hence the money was to remain in Luanshya. Figures usually excite people but you must be critical and analyse things for the benefit of the masses. Unders ZCCM that town was heaven. Why couldn’t government sell the mine to Zambians even after they put a bid for it? I would bet on my life that more than 90% of that money people are excited about has gone to pay chinease suppliers. If they can help each other even in your country why cant you???
Zedian look at the business side. When the mine was advertised no Zambians bidded. And i must say again that is not a very profitable mine and that is why it has been running into problems. As for the 150m dollars. Well as long as it improved the situation and the got the mine running again. I am happy.it has done something actually a lot to all those workers who were on the edge of losing jobs.. I agree that the chinese are likely to give chinese suppliers but thats what you have to put up with when you are the weaker party in a negotiation. And this is just what private sector run economy means.
# 12 I do agree with you on the last part thats why we need a leader who can be bold enough to make hard decisions that will a ensure a win win situation right now all investors are just here to reap off. Do we have any Zambians being seconded to their countries for instance so our labour force can acquire skills that will remain even when the investor bolts! As regards that mine being unprofitable, the main asset there is Mulianshi thats what all investors are after. As for Zambians bidding they did bid but as usual where politicians control things it’s difficult to get a local unless they are getting shares.