GOVERNMENT says Konkola Copper Mines (KCM) and the Non-Ferrous Copper Mine Limited (NFC) are frontrunners to buy the equity shareholding of Luanshya Copper Mines (LCM) by end of May 2009.
Minister of Mines and Minerals Development, Maxwell Mwale said in an interview yesterday that apart from the two, a Kitwe-based company in partnership with an international company was also bidding to take over running of the mine.
The minister’s announcement rests anxieties among miners in Luanshya who lost their jobs when the mine was placed under care and maintenance last year.
Mr Mwale said the new equity partner for LCM would be announced by the end of next month and that full operations of the mine were expected to start in June.
The minister said Government was studying the bids received so far and that it was in the process of finalising the list to determine who takes over the mine.
Mr Mwale said Government would increase its shareholding in LCM from the current 15 per cent to 35 per cent.
LCM was forced to put the mine under care and maintenance as it grappled with the impact of declining metal prices at the international market and the adverse global financial fallout.
The LCM put the mine under care and maintenance in November last year but finally pulled out and handed over the running of the mine to the government on April 6, 2009.
Government had already formed a technical committee that looked into the transformation of the ZCCM-HI into a vehicle that guaranteed continued mine operations at LCM to secure the interests of Zambian workers.
Mr Mwale said it was no longer justifiable for mine owners to continue retrenching workers because the prices of copper had continued to rise and that operations of mines were no longer in danger of financial fallouts.
The minister said copper prices were at U$4,400 per tonne as of yesterday, from U$2,800 in December 2008 when most mines opted to reduce labour force to ameliorate their operations.
Mr Mwale said the mine owners could no longer hide in the global economic recession or low copper prices because the situation had improved.
Mopani Copper Mines (MCM) last week informed the Mine Workers Union of Zambia (MUZ) that it would not close Mufulira Mine as earlier intended but would go ahead to retrench 1,500 workers in Kitwe and Mufulira.
MUZ general secretary Oswell Muyenyembe said the union and management held a meeting at which management informed them of the decision to retrench workers at the two mine sites.
The management informed the union that the retrenchments were part of the restructuring programme the company was undertaking.
MUZ has since appealed to its members to remain calm as management effects the retrenchments.
Mr Mwale said the mines should stop retrenching because they did not have the blessings of Government, especially that the copper prices had continued to rise since December last year.
“The mines should not use the copper prices as an excuse for retrenching workers, that is unjustifiable. They should not use the global recession to clean up their houses, that is unacceptable,” the minister said.
[Zambia Daily mail]
Let’s hope they wrap up a good deal with a serious investor who will secure the future of the mines & it’s employees.
Give it to KCM these guys are more serious than NFC. NFC does not care the pride Zambians
eeh, we can not rule out corruption mwenyes and mmd everything is possible
Yes give it to KCM than NFC it will be better managed by them though good development
Before they gave the mine to these thieves the so called JBW, first quantum minerals where the ones that wanted the mine in luanshya and right now the mine wouldnt have been going through what it is going through……..pipo of luanshya have been through a lot,its high time the government gave the mines to right investors and not briefcase businessmen who call themselves investors….KCM will be the best option…..!
Giving everything to KCM will be just like creating something similar to ZCCM. These NFC guys are more serious than you think. As at the moment they’re the only ones with the capacity to run Luanshya mine in the current economic scenario. For your information so far NFC hasn’t hinted about retrenching anybody as compared to KCM which has so far retrenched more than 1500
Arent the NFC guys the ones who’ve put up Africa’s biggest copper smelter in Chambishi? And they are not serious right?
I expected people of the copperbelt who knows who between KCM and NFC can be a serious investor based on their present perfomance to be recommended as an Equity partner in LCM to blogg and debate on this one so as to give an hindsight to us who are far way but am suprised they have not pitched up.and tommorrow when goverment announces one who is not their favourite kukaba ichisungu.
Shimaini are you truely a shimaini? coz NFC are not in no shape of running the mine in luanshya,chambeshi metals is not under NFC,chambeshi metals is part of luanshya mines now becoz the guys the JBW who were running lya mines are the ones that were incharge of chambeshi metals…and they have failed.NFC metals failed to run their plant in Ndola and up to now they havent yet payed off their employees.lya copper mines it not a small mine, if am not mistaken it should be the biggest mine in Zambia……
Ross, I think you must be misinformed, Chambishi metals is not owned by NFC. NFC operates an underground mine separate from the metals. Chambishi metals is owned by J&W which owns Luanshya mines. If I’m not mistaken this is an Indian firm. The difference between Indian firms and Chinese firms is that, Indian firms are owned by individuals whilst Chinese ones are owned by Chinese government. I think from there you can draw conclusions
SHIMAINI,
Good posting.i’ve learnt something on the ownership of LCM
Shimaini you are right I was wrong sorry for that,I confused None-ferous metals in Ndola am sure you are in a position to remember this one and NFC which is in kalulushi……Thanks for the correct info……
Not a single chinese run firm in Zambia has retrenched workers, let alone, blamed their incompetence on the economic crisis……….yet, KCM has retrenched and is still threatening to close down Nampundwe which has 2,500 workers. Now which would you give Luanshya mine to, KCM or NFC. Be very objective not subjective. I would give it to NFC many times over coz they’ve proved themselves worthy by their respect for human souls.