Friday, March 29, 2024

0ver 300 workers left jobless

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About 320 workers have been left jobless following the closure of a mining company in Chingola on the copperbelt.

JES mining Limited, which specialised in the extraction copper ore, has been closed because of financial problems.

The mining company has been operating for the last three years.

The company, which is owned by three partners from Zimbabwe is now under liquidation.

Labour Minister, Ronald Mukuma disclosed this in Parliament.

Mr Mukuma said the workers will be paid their terminal benefits.

[ZNBC]

27 COMMENTS

  1. There we go! We should brace our selves for more of such closures when the new Tax policy for the mines is implemented. This is a result of allowing investors with bogus financial muscle to run the mines when we can thouroughly scruitnize them before granting them Licenses. I hope we don’t get another Roan mines situation we had a few yrs ago.

  2. The Tax is not the reason for the closure….its due to poor finacial discipline……….You learn how to manage a company well…then you wont have such problems…can you honestly have finacial problems in a country as open as ours ??

  3. After externalising all our money, those bastards infestors are now running away from new Tax policy. Am I sure they will also run away from paying workers terminal benefits!

  4. Sad, i can imagine how hard it will be for the families. So these so called investors now want us to suffer, lesson learnt we need joint ownership to these mines.

  5. I agree with #s 3 and 4. These chaps have already made a kill and do not care obsolete assets they are leaving behind if at all. They found a safe zone (Zambia) for making quick money and externalizing and having achieved their goal, it is time to leave. On the part of Govt, it is time to thoroughly scrutinize these investors before they start operating. If it is possible allow management buyout of the remaining face value of this company.

  6. Do we really believe that in the three years this company has been operating in Zambia, its owners have made a killing and are now walking away and leaving obsolete assets behind? Dear Zambians dont be cheated. This was a kantemba with no facilities to process the copper ore they were extracting. At best it was a small operation selling small amounts of ore to the big players on the CB, most likely to the chinese who have been stockpiling ore for the chambishi smelter.

  7. The answer is partnership between Zambians and foreign companies. That way any dubious operations will be monitored by Zambian shareholders. Besides a sense of ownership will be instilled.

  8. Let’s not complain when our Investment regulatory framework allows such kind of mediocre chaps to set up shop in Zed. As #3 & #4 have rightly observed, the men have bolted to enjoy the spoils of their rape & are probably chilling somewhere in the carribean as we speak! My heart goes out to the 300+ workers left in the cold!

  9. It’s not fair ata all.they shouldn’t get any property form the premises without paying the workers.if they don’t have money,sell their assets and pay all employees.

  10. #1 Do not mislead others by commenting on things you do not understand. JES Mining was a contractor on a mine site owned by KCM. Contractors do not pay royalties nor are they subject to windfall taxes. They are just hired hands like road building contractors.Some contractors bid too low in order to win a contract & they cosequently go under. Others get excited with upfront/monthly cash receipts and forget/or deliberately ignore their loan obligations (I read somewhere that JES got a loan from Stanbic) Other contractors are simply incompetent and lack the capacity/expertise to do the job but are still intent on making a kill. New Mineral tax regime has nothing to do with JES failure.

  11. ctd; It is either a maangement problem or conmanship where the chap[s get a contract, borrow from a local bank on the back of the contract, make a kill and ignore to service the loan and voluntarily liquidate. I hope the latter is not the case. Remember Binani loans from Zanaco nearly collapsed the bank. Meanwhile the chaps went away scotfree.

  12. ctd: Quote from Times of Zambia 27/02/08He said at the time of being given the contract, JES Mining claimed that it had the equipment in Zimbabwe but that country’s government did not allow it to relocate the equipment to Zambia forcing it to borrow money from Stanbic Bank to buy equipment.

    It appeared that the equipment that was bought was not appropriate for the extraction of copper from deep underground levels and the company started to produce lesser quantities of copper.

  13. CTD: Additional comment: After 3 years the pit got deeper and the equipment got older and unreliable, costly to maintain. If the owners of JES lacked forward planning (blew all the money they made in the happier days/or externalised the cash receipts) they found themselves in a tight spot having to haul ore from deeper benches with old/rickety equipment and no cash reserves/or poor loan service record with the bank to buy new equipment. Also Fitwaola is not an underground mine but an open pit mine

  14. Remember guys that, that is what is called jobb creation and improved economy our goverment is boasting about.
    If criminals can attack a police station with axes and machets and get away with a police weapon\\\\\ m m m m m m m,it is unbeleavable. to me it just sounds like a commedy.

  15. Theoretician #11 thru #14
    Thank you. You offer great perspective and information making it easier for some of us to actually get a picture of what may be going on.I find it odd though that the liquidity news had to come from a govt minister,in parliament no less, and that he is the one reassuring about terminal benefits. I would think that we have regulatory bodies in place to screen and monitor patterns and perfomance of such (possible vagabond)companies so we can insulate ourselves and employees.I would also think that of immediate concern would be to initiate an investigation by govt rather than beeing their spokesgovt.What do you say?

  16. Theoretician #11 thru #14
    You are 100% correct and that is exactly what is on the ground. JES were contractors to KCM and never owned the mine. Lets avoid commenting on issues that we do not understand fully. #1 take note.

  17. The company simply meet it’s targeted profits? wait and see another buyer will surface ..make its money and leave? they simply do not want to invest more money in the mine?

  18. Theoretician good research work there…. you are quiet smart. I hurt to see comments with baseless support e.g number 9 Tarantino….who told you the investment regulatory framework allows setting up of shops in zambia? familiarise yourself with zambian legislation such as the ZDA Act and see whether there is a clause supporting what you claim. The problem we have is the weak instituition set up. we need to strengthen our instituitional framework and not what you are talking about.

  19. It is beyond me how “loyal Zambians” always complain about foreign investors in the private sector on the one hand, and then almost beg from donar countries to pump money into projects (e.g. roads, health etc.), which should have been funded internally through the proceeds these foreign investors have generated through their operations in this country.
    Thinks back for a moment about what happened to ZCCM. It got corrupted from inside – NOT FOREIGN INVESTORS.

  20. I have listened closely to some of our citizens yapping that Zambians must form partnerships with foreigners coming into Zed to infest their money.

    Does it not occur to these people, Levy included that it is really shameful to sit at a table as a citizen trying to negotiate with a foreigner who has money, but you have nothing in return to bargain with? One cannot sit at a table and offer a bag of air in a black skin. We need institutions that would enable Zambians access funds that they can use to join with foreigners. In this way, foreigners will know that the guy across the table is genuine and a serious business parson.

  21. No: 11 thumbs up bro! Ladies and gents lets offer sound and informed contribuitons. Typical of a Zambian is the zeal to talk about things he hardly understands whether in politics or wherever. I work for a company that contracted this private hand. I followed all the deliberations that went on till the company in question folded up.Many things have been said already, all i want to say is that you expose your ignorance when you comment on what you dont understand. As long as you dont understand an issue yo input will owez be shallow and mediocre!!No substance to it. You will be like one who beats the air. Fitwaola Open Pits was one of the three active pits namely COP F&D and NOP Cut II.

  22. contd
    The Open pit mine now remains under the care and maintenace of KCM.

    Another thing of paramount importance i would like to share with the Zambian people is that, work is not a marriage contract. Its not a till death do us part affair!!
    The world is so dynamic. And in its dynamism it presents a myriad of challenges. The political and economic landscape are not as they used to be.Even as we work let us have it in mind that change is inevitable. Lets train ourselves to manage change.
    JES Mining was a contractor. they did not come to stay. The fact that they have gone,though prematurely, are we so shocked?As long as we dont invest and be our own bosses we shall continue being..

  23. ..shocked!!
    You know it feels good to complain and win public sympathy but for how long.As someone rightly pointed out we have learnt our lesson in Luanshya and elsewhere.I know this is a challenge but let there be a level of preparedness in all that we do.
    All else believe me or not,we will find ourselves blaming the govrnmnt,the bad policies,the”fake” investors,corrupt ministers,the police etc.
    However I have no doubt in my mind that this country’s future still remains very bright.If it where not so we would not have people trooping in from everywhere in search of wealth!We have the wealth and it wil remain ours.Lets acquire the wisdom to manage our own resource and be our own bosses.

  24. Ba Mwine #19, pls learn to analyse carefully before making incoherent comments. If you have a basic grasp of the English language, you’ll realise that the term “to set up shop” is an idiom which means “to establish a business” and not opening an actual shop! My God! Your point simply repeats what I said about our Investment regulatory framework being inadeqate, resulting in mediiocre investors coming here, being granted investment licenses based on pledges they don’t necessarily have to adhere to. PS. you “hurt to see comments with baseless support?”…I assume you meant to say “hate”! Pls don’t expose your ignorance on the forum for crying out loud!

  25. Am dissapointed with the half baked information LT z bringing out.# 11 Theo has explained everything.
    Now some cadre z claiming Sata told us PULIIIZ! Nothing to do with new taxes or Sata its nkongole from Stanbic Bank bane & that happens in business.

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