The private sector has advised government not to take over the operations of the mines in the country as it has no capacity to run them.
Private Sector Development Association, PSDA, Chairperson, Yusuf Dodia, has hinted that taking over the operations of mines can just result in over spending on the side of government.
Mr. Dodia was reacting to calls by a cross section of society that government should intervene in the affairs of the mines which are closing by taking charge of them.
He explained to ZANIS in an interview in Lusaka today, that government alone can not manage to operate the mines as it has other needy areas that require its attention.
He noted that if government goes aheard to take over operations of the mines in the country, other developmental projects would suffer as money would be expected to be channeled to the management od the mines.
He added that with this global economic meltdown other sectors are also likely to be affected and will therefore need government’s assistance.
He, further, added that government can only intervene by putting the mines on care and maintenance to protect the interest of local miners and cushion impact of the recent job cuts.
Mr. Dodia said there is need for government to ensure that the interest of miners are protected by ensuring that mines do not completely close while it is looking for another investor to take over the operations.
He also cautioned government to find equity partners that will not only take over the operations of mines but that will also ensure that miners that have lost their jobs are returned.
He also stressed that  nationalizing the mines can have a negative effect on Tax payers as they can be subjected to high taxes as way of raising more money for effective operations of the mines.
Zambia is one of the country’s that has been hit hard with the global economic meltdown which has led to the failing of metal prices on the international market resulting in mine closures and hundred of miners losing their jobs.
ZANIS/MM/ENDS/SJK
Back to KK days. Take them and mismanage them.
I have no idea what should be done with the mines….
You’re not the only one Most of our leaders are clueless too but they wont admit it. That is why they are always quick to issue mining licences to any chinese company that comes along.
Then shut up
The most important thing is to secure people’s jobs and the govt should do everything possible to ensure that,even if it means nationalising them.The last thing you’d like to see is a situation where there’s increased unemployement,leading to social unrest.Mr Dodia doesn’t understand capitalism and the big problem is that he thinks he does.Should the govt just sit and watch as the people lose their jobs while these petty private investors place the mines on care and maintenance?
I dont understand what he means by saying that
“government can only intervene by putting the mines on care and maintenance to protect the interest of local miners and cushion impact of the recent job cuts”.
How will it protect the jobs as the mines will not be productive?
He also insinuates that the mines are just an all input and no output in term of money. I think the government should way the amount of losses and see how it can operate at break even or at minimal loss by finding and employing experts to run the mines.
What is this guy Dodia talking about? The government has a social responsibility to its citizens and taking over of the mines which I believe are still viable will not only create employment but generate income for the nation. Mining is a lucrative business which is why our so-called investors want our mines so much. All we need is to have prudence in the way we run them with minimal political interference. Zambia has a lot of qualified and competent people to surely run the mines.
The best thing to do by the government is to set up value-adding industries that swallow up more than 50% of the produced minerals in Zambia and sell the finished mineral goods at home and abroad. This will create millions of jobs, more demand for minerals outside the country and therefore increased minerals prices and government revenue. etc.
Peter I am 100% with your suggestion. Let’s hope someone in leadership will steer implementation of your thought. We have a good number of qualified people in engineering, research, and management who an venture into industries that would consume the copper and turn it into finished products. The only thing needed is for government to render finantial support to purchase machinery. What are we waiting for? A good example we have is that of ZAMEFA which makes cables that are of a high standard. How about copper pipes, etc?
The GRZ can take over the abandoned mines but should not temper with those which are still operating. Then we shall see how capable GRZ can be.
That has been my concern too it. My opinion is that the current job cuts are a blessing because now we have a financial crisis and commodities a rarely found in shops, their is less money in circulation because of the increase cost of doing business resulting from the weakened kwacha. The laid of miners will help the economy back running as their will be alot of money in their pockets hence more business will emerge and more money will be in circulation. For me, mines must be put on care and maintenance as to help the struggling investors save costs.
That has been my concern too it. My opinion is that the current job cuts are a blessing because now we have a financial crisis and commodities a rarely found in shops, their is less money in circulation because of the increase cost of doing business resulting from the weakened kwacha. The laid of miners will help the economy back running as their will be alot of money in their pockets hence more business will emerge and more money will be in circulation. For me, mines must be put on care and maintenance as to help the struggling investors save costs.
Shallow Shallow Shallow, for how long will the miners have the money running, that is if they are getting any decent severance packages??? the same businesses that the laid off miners will be doing is probably trying to register as a supplier to the same mines.. unless some form diversification pursued i doubt that there will be any meaningful business development.
There is something the govt can do and that is get the mines, appoint proffessionals to run them and not to intefere in anyway other than when there is mismanagement. Instilling displine in the running of the mines just as the foriegn investors have done and do. although the only problem will be how to do that as most of our leaders themselves are not displined. When appointing directors or management this should be done not on partisan lines or on cadrerism but on professional lines. Then we will have a lot of money to pump into development of this country.
Kwind these are the guys who destroyed our mines! All they did was take company material such as pumps etc to their farms/plots. At one time they up graded jobs which had no impact on the indusry just because their relatives and girl friends were in such fields; they down graded mining and engineering jobs. So if you talk of local proffessionals you need to sieve very carefull other wise we shall be going in circles
I agree with you, we all know of the ZCCM big wigs who profited at the expense of the industry, there would be no difference between what KK did in the 70’s to what RB is proposing now.. (we should know better after all he is a former UNIP probably mentored by KK) and how can government not interfere when they have a vested interest. a way should be found were these mines are run at break even or minimal profit until such time that the global recession subsides. Also local investors should be encouraged in the small scale mining sectors, this would create further employment, instead of leaving the Senegalese to profit from our mineral wealth.
If the current owners say they are making losses, how does the govt intend to make profit. We are not like OPEC who can pump up oil prices by squeezing production. If there isnt sufficient market for copper out there, then put the mines on care and maintenace. Hard choice but teh govt does not have money to subsidize mine operations.
I THINK THEY SHOULD LET THE MINES THAT ARE DOING WELL BE THE WAY THEY ARE WITH THE PRIVATE COMPANIES IN CONTROL, HOWEVER THEY SHOULD TAKE OVER MINES THAT ARE NOT DOING WELL SUCH AS LUANSHYA. I WAS SADDENED WHEN I VISTED ZAMBIA LAST YEAR TO SEE A CITY (THE FRIENDLY CITY) THAT USED BE SO BEAUTIFUL, LOOKING THE WAY IT IS. I REMEMBER GOING TO WATCH RUGBY GAMES AT THE RECREATION CLUB AND A LOT OF PLACES. I WISH & PRAY FOR OUR COUNTRY, SUCCESS & PROSPERITY AS WELL AS HOPING FOR THE FUTURE GENTRATION OF OUR MOTHER LAND TO DO MORE WHERE OUR LEADERS FAILED SHORT AND PUT THE PEOPLE OF ZAMBIA FIRST..MAY GOD BLESS ZAMBIA