Mopani Smelter in Mufulira
Mopani Smelter in Mufulira

Government says it will not allow Mopani copper mines to place the Mufulira and Nkana plants on care and maintenance.

Mines Minister, Maxwell Mwale, says government has written to Mopani copper mines asking them to surrender the assets and expects an answer from them by Friday.

Mr. Mwale however emphasised that government will not nationalise the two mines but only secure their assets.

He told ZNBC that other investors are interested in taking over the mine and that government can not allow the management to go into care and maintenance while miners suffer.

Mr. Mwale said government will not rescind its directive to Mopani management to surrender the assets of the mines.

Mr. Mwale said due diligence tests carried out on most of the mines indicate that Zambia still has viable mineral resources.

He said there is no excuse for firms to pull out their investments from Zambia because copper prices on the market are economical.

Meanwhile, only about 10 out of more than 500 mining rights in the emerald restricted area on the Copperbelt have been developed.

This came to light at the Emerald and Semi precious Stones Mining Association of Zambia -ESMAZ- Annual General Meeting in Kitwe.

ESMAZ acting president, Dale Litana, said all the developed emerald mines are owned by foreigners.

He said the gemstone sector has seen very little development since the inception of emerald mining in the 1930s.

And Mines Safety department chief inspector of mines, Billy Chewe, assured the gemstone miners of continued government support.

/ZNBC/NEWS

[Read 23 times, 1 reads today]
Loading...

57 COMMENTS

    • This is really serious!! What will the Government do if the Assets are not surrendered by friday?
      The Consequences are missing!!

      0

      0
    • thats mere politicking. considering how lopsided the contracts of sale were made, i think palibe chatu!!

      0

      0
    • Iwe Jamaco why are you replying to yourself? This is also SelbstgesprÃĪch (symptoms of Dachschaden! Don’t let these stories penya you!

      0

      0
  1. Why not just nationalise seeing that the owners have thrown in the towel? Why do our leaders like to issue warnings and not act

    0

    0
  2. Certainly the mine owners should not hold the nation to ransom but Gov’t policy on weathering effects of the global credit crunch are simply non-existent. It’s no point issuing empty threats without clear direction in the event that the mine owners do not comply with the directive.

    0

    0
    • In a game of Chess, players know not to reveal their cards before time, hence, the consequencies of not surrendering assets cannot be given now!!! Get it?

      0

      0
  3. I think the decision by the govt to secure the assets of the mines in a good precaution. No one can predict when copper will start selling again and everyone is busy stocking up their gold reserves at the momment.

    0

    0
    • Iwe mudala wandi! No selbstgesprÃĪche hier!!

      The Government’s direction is half baked!! They never put a complete picture across. They warn but lack implementation. They are never taken serious since they themselves where act like amateurs. Its a shame

      0

      0
    • The decision by Glencore has nothing to do with low copper prices. When Glencore bought the mines in 1998 copper prices were $1400 per tonne. Today they are $3660 per tonne. Look at yesterdays edition of the Financial Times and you will understand the doldrums ion which Glencore is in. Glencore (as everyone else knows apart from dull Zambians) is a metal trader and not a miner. As a the world’s biggest metal trade Glencore is first and foremost a speculator. With metal prices going down they have lost cash and are therefore pulling outof the two mining assets they control. Thus they have sold their coal mine in Columbia to Xastra. Zambian assets will follow later when they can geta…

      0

      0
  4. This should be a lesson to Zambia. What has privatization achieved so far? Pain and suffering! Lots and lots!

    0

    0
  5. Zambia must get back those mines which are closing. And at the same time, we must revise our mining policy so that all future agreements with interested parties are based on the law of the land. As the situation is now, Zambia cannot take these characters to court for breach of contract or whatever you want to call it. That is how one sided the so-called ‘Development Agreements’ were framed with the ever-green ‘help’ of World Bank! Hey Mr Mines Minister, I can recommend that you must constitute a team from UNZA and CBU to work on the new Mining Policy. Do not I emphasize, do not hire consultants from some unknown God-knows Island to do the task that us Zambians are more than qualified…

    0

    0
    • I would personally want to see more Zambians get involved however, we must realize that we are limited in some ways just as the consultants are equally limited in certain aspects. In fact we are acutely lacking.

      0

      0
    • I don’t understand what you mean when you say we are lacking. We have the capacity to draw up our own policies without running to World Bank, IMF or foreign consultants. We have highly trained and experienced people to do the job. Of course, the process should be consultative and involve wider participation from all stakeholders, but professionals from higher learning institutions should lead the process. I am skeptic about the interested ministry being the leader because of political interference and influence. Please do not underestimate the capacity and capabilities of Zambians.

      0

      0
  6. The Minister of Mines talks about “other investors” interested in the mines. Who are these investors and how credoble are they and why would they be willing to invest at a time when major companies are failing? In a critical atmosphere like the present are we likely to get a good deal if we could not when copper was seeling well? Is the Minister’s statement an empty one?

    0

    0
    • This is all half baked!! Even the warnings are not serious. It would not surprise me if there were no other investors. Otherwise the “Other investors” would have pumped there finances in the mines!! What a shame. This kind of talk gets on my nerves. The Government will never be taken serious if all they do is shoot with blanks.

      0

      0
    • The problems is you guys are busy ‘shooting’ at govt. ok, tell us, whats the best solution to this issue?

      0

      0
    • The best solution is to spread more positive news than issuing threats! Which investors are you going to attract if they see how you as a government treat other investors? Positivity is the way forward.

      0

      0
  7. Why is mwale talking about mopani and not kcm nkana which is not even under care and maintenance. What is so special about mopani? Lcm is still down why not repossess lcm

    0

    0
    • Man, two wrongs dont make a right. If govt realises now that the best way to handle investors is by asking them to surrender those sections they feel are unprofitable, why not exercise that power. Investors should start feeling govts weight. I believe its the right direction for the govt.

      0

      0
  8. It is indeed good to secure the assets. Nomba bane, the warning by the Minister of Mines only holds water if the Agreement (Contract) is violated by Mopani Mines. Before we make further comments or raise our hopes in vain what does the contract say bwana Minister?

    0

    0
  9. Stop appointing ‘shuhshus’ as Ministers, they only know one thing – thriving on lies.

    0

    0
  10. I think it is a good idea for the goverment to secure the investment. It is high time goverment started looking at other reliable sectors that can contribute to the development of our country.

    0

    0
  11. so the mining companies should do gov. favours by keeping mines operational when they are making loses?

    what signal does this send to would be investors? whether profitable or not keep the business running,at whose expenses ba MWALE? efyo chaba bane governing is not easy.

    0

    0
  12. This is the effect of giving the investors too much authority.Lwenu you are still facing more problems from these pipo kaili you thought they were great pipo mwabalesha nokulipila task Oh sorry! tax.Tapalati ba Govt mukose nokukosa.

    Stay blessed my fellow bloggers.

    0

    0
  13. “And Mines Safety department chief inspector of mines, Billy Chewe, assured the gemstone miners of continued government support ” ………… which continued govt support ? Stop using these tired cliques and phrases that mean nothing.

    0

    0
  14. This matter my fellow Zambians is complicated because no one expected such a thing to happen. The other day it was LCM followed by Abidon now it is Mopani plus massive retrenchments from other mines. Only a dedicated government can solve these matters otherwise with our current government i don`t think anything will be achieved to stop these investors from doing what management has already decided. Its a pain to us because government cannot run these mines because most of the money left in the reserve bank by the late president has been spent by the MMD government. Shame!!

    0

    0
  15. This is really Politiking, Maxwell knows that the Govt., is powerless to do anything and he is busy lying to Zambians. Friday the 13th is today, we await the decison to be taken. They said the same thing a few weeks ago and weeks later Albidnon Munali Nickel Mine closed. Nothing was done. The MMD signed toothless agreements that advantages the investors.

    0

    0
    • Good morning. I was about to ask just how feasible this statement/directive by Mwale was. The Govt should learn to tell the truth. Unless there is something am missing, but is it possible to take over assets?

      0

      0
  16. I think I will petition this one male Maxwel mwale for lying to Zambians. he must be dropped by NyamaSoya. or we drop the head instead. day in day out, he keeps lying to us about Govt., intention / plans to block the mining companies laying off workers. 8000 direct jobs lost is not a joke as mean more than 100,000 people indirectly to be affected. More crime, more people out of school etc.

    0

    0
  17. I just cleaned my telescope, waiting from a distance to see what government does today if the handover is not done

    0

    0
  18. We have been watching on the sidelines from the time RB and this clientelistic government took over the affair.s.

    0

    0
    • Free Market Capitalist : I strongly disagreed with you over your support for the World Bank representive in Zambia , the statement that ‘economic growth record or national output will be higher than the one recorded in 2008 ‘ is ridiculous for the readers and economic speculators. Copper exports contributes about 90 percent of Zambia ‘s Gross Domestic Product and 10 percent is contributed by other sectors of the economy. It is my sincere hope that you have realised that it practically imposible for agriculture and tourism to transformally replace minning within months of exeriencing the financial melt down.

      0

      0
  19. And why Mopani only anyway? Other mines have closed and jobs have been lost. The Govt has done nothing. Today is friday (the 13th, for that matter). This, i have to see!

    0

    0
  20. We are fed up with these investors. Let them leave our Copper, moreover tafya kabole. After all it’s our men who does the mining whilest them they are just busy with their meetings which never finishes. Mr Minister please don’t spare these investors at this time when the whole world is faced with the Global Sunami. It’s high time we jelously guarded our Mineral Resources.

    0

    0
  21. Fascinating! If Mopani was making money why would Glencore want to close shop? If there are serious going concern problems is the government (and the country) prepared to fund this bottom less hole? If the desire of policy makers is to make another NCZ then this is the correct policy response. If however, what we wish for is a Zambia that weathers the storm and comes out stronger and able to face the challenges of the future then we need to use those skills that miners have and rather invest on an infrastructure (rail, road, ICT) renewal and investment programme for the country. For too long the mines have distracted the true potential of our great country…..!!!

    0

    0
  22. Mopani Mines does not keep the money they make in Zambia.All theyb have been doing is getting out as much as possible.Look at their so called Geriatric expertriates whose salaries are10 times that of their Zambian counterparts who even know better!One chap was even boasting that they only give less than a $1000 back in the community.Now imagine that with all the money they make.Let these Aussies leave .There is always someone else to replace them.As long as Soy Sauce does not give the mines to his sons.

    0

    0
  23. Ala kamfulumende tayakwata matwi. Way back in the late 90s GRZ was advised not to sell the mines but just remove political interference. No one listened. Now the very characters GRZ thought were the saviors are now taking off, having become rich from our Copper and Cobalt. Just imagine what amounts of money would have become zambia’s own if the mines had remained zambian owned during all the years of excellent metal prices. Now GRZ has no option but to do exactly what we as professional miners told them. Ala umupini ukulangile umwanakashi libwelelo.

    0

    0
  24. Thats what happens whe you have myopic people for leaders. Like someone mentioned somewhere here, this is just the begining of bad things to come for mother zambia

    0

    0
  25. This is what happens when you are too dependant on a diminishing resource,this should open our eyes to diversify,everytime the copper mines have the FLU the nation has a serious TB outbreak.And next time dont give the so called investors abnormal rights,when the tax holidays end they simply pack and go,its business after all no hard feelings

    0

    0
  26. There are hundreds of well trained Zambians languishing in the townships, plus dedicated expatriates. Guys who were sidelined with privatisation. These people can come out of retirement and make the mines profitable. All that is needed is 3-6 months working capital, which Zambian entrepreneurs, or a consortium of banks can supply. A proposal for Luanshya was submitted to Hon Mwale on 02 January..we await his decision. The assets are there, the human resource is there, the resource is there.JUST THE CAPITAL IS MISSING. Our sharp accountants will have to be at the forefront to guard the cashflow. I can see success for Zambia and Zambians on the horizon. Foreign investment is not the solution!!

    0

    0
  27. This obsession with mining needs to come to an end. Successive Zambian governments seem to think that mining is the answer to Zambia’s economic woes. I think that manufacturing and agriculture are the solutions. We need thousands of small Zambian owned factories producing anything from screws to nails, from screw drivers to spanners. We can export our way to properity. But this can only happen if our governments moved from being obsessed with foreign investors and used the citizen’s empowerment fund wisely. Unfortunately we have a culture of dependency.

    0

    0
    • I agree with you totally. The Zambian administration thinks that foreign investors are the only hope for Zambia. With govt support we can raise and support domestic investors. People have money but the investment climate does not support them. Take for instance registration of a business name which takes two to three months. But for foreign investors it is overnight. Getting land to put up infrastructure is another nightmare. These are but just a few obstacles that must be addressed by the system.

      0

      0
    • Your proposition is good man, but a few things need to be in place. GRZ need to identify those small scale manufacturers and the products they can manufacture and what quality. Then they should increase duty on those products(imported) so that when they are bought from abroad they are too expensive to sell in Z. This will make the Z products cheaper to capturer the local market first. Then later, when they grow, they consider exportation. As it is now there are very cheap high tech asian products such that any locally manufactured will have to be saffocated.

      0

      0
  28. I though these were private companies. Can Govt ask the likes of Shoprite to surrender assets? Hmmmm

    0

    0
  29. We need manufacturing I agree. But for manufacturing to work a few things need to be in place. GRZ need to identify the small scale manufacturers and the products they can manufacture, quality and quantity. Then they should increase duty on those products(imported) so that when they are bought from abroad they are too expensive to sell in Z. This will make the Z products cheaper to capturer the local market first. Then later, when they grow, they consider exportation. As it is now there are very cheap high tech asian products such that any locally manufactured will have to be saffocated.

    0

    0

Comments are closed.