Friday, March 29, 2024

Mopani Copper Mines to continue with its mining operations

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Mopani Copper Mine in Kitwe
Mopani Copper Mine in Kitwe

Mopani Copper Mines (MCM) has announced that the mining firm would continue with its mining operations in the country.

Company Secretary, Kyansenga Chitoshi, said that MCM and its Board of Directors had reached an agreement with its shareholders to continue mining operations at both mining assets at Nkana Under Ground and Open Pit Mine as well as Mufulira Mine whose shafts would not be placed on care and maintenance as earlier suggested.

Mr Chitoshi said the mining company had carried out a detailed review of its mining processing and administrative operations and was expected to achieve a significant cost reduction through the implementation of a range of cost containment programmes.

He added that a slight increase in copper prices has also enabled the company to make decisions to continue with its mining operations at both Nkana and Mufulira rather than place the shafts on care and maintenance.

Mr Chitoshi further said the aging ore bodies currently being mined were now nearing the end of their productive lives, hence the decision by the Board of Directors to re-evaluate the potential of the synclinorium ore body, an as yet untapped resource of 100 million tonnes of copper bearing ore,located below the existing Nkana South Ore Body and Central Shaft Ore Body.

He observed that the Board of Directors was hopeful that the measures which have been put in place would significantly contribute to the profitability and sustainability of the operations, prolong the life span of the mines and secure a brighter future for the work force.

MCM has in the recent past retrenched more than 1000 employees in their quest to remain afloat following the fall in copper prices as the effects of the global economic crisis continue biting.

And government has commended Mopani Copper Mines (MCM) over its decision to continue with mining operations in the country at a time when copper prices were low and the global economic crisis biting.

Labour and Social Security Deputy Minister, Simon Kachimba, said MCM must be commended for deciding to continue with operations at Nkana and Mufulira Under ground and open pit mines when most of the investors in the sector were closing down.

Mr Kachimba, who was speaking when he met Mopani management at the MCM Nkana board room today, said the mining company will not place its facilities on care and maintenance as earlier suggested but would continue to downsize on labour and devise new production mechanisms to ensure that the mining company remained afloat and continued operating on profitable levels.

He said the company has also reduced its expatriate labour force from 125 to 50 by the end of this month to ensure that the company continued to operate on profitable levels.

He disclosed that the company has also decided to implement all developmental programmes that were shelved following a reduction on copper prices to ensure that the company became economically viable again.

Mr Kachimba, who was on a three day tour of mining companies on the Copperbelt, further disclosed that MCM which had a workforce of about 20,000 people has reduced to 7,264 Zambians while 50 were expatriates.

He said Government was interested and ready to partner with investors that were willing to create and save jobs for the Zambian people.

He added that Mopani’s decision to continue with operations was a clear indication of the company’s appreciating of Government’s policies which had seen a reduction in taxes to enable the mining companies revise their production costs and, in turn, remain afloat

Mr Kachimba observed that MCM was the largest employer of miners on the Copperbelt, hence they must be commended for taking such a bold decision.

ZANIS/ENDS/LK/EB

27 COMMENTS

  1. So a total of 12,736 Zambians lost their jobs at MCM. Its a very terrible impact of the global recession. But our economic technocrats strongly argued that the global economic recession was not going to have a significant impact on Zambia. So what went wrong? Our economic technocrats misinformed the nation

  2. # 2 The so called technocrats are just a political tool used for campaigning. They have not yet stood ground and present a solid stance. This sounds like they are playing with our minds…I bet this will be quoted during the presidential and parliamentary elections. ‘They will argue that they saved some jobs such as these……!!

  3. This is good news. On a side note, Does anyone know who is behind the new party CDP? edited I ask because I recieved emails from them, and one of their solutions to the economic problem was interesting and made a lot of sense especially in light of the copper prices.

  4. This is good news. On a side note, Does anyone know who is behind the new party CDP? Their website is the-citizensdemocraticparty-com. I ask because I recieved emails from them, and one of their solutions to the economic problem was interesting and made a lot of sense especially in light of the copper prices.

  5. Thanks Lasa for the info. I think I may just defect to this party. CDP shows some form of seriousness, just in a way. but we have to wait and see if it will have some dirty hands in its ranks.

  6. Good to hear one mining company in Zambia is still thriving….

    Will always remember this site on above Pic..
    to the left.. you have just passed Wusakile township and Wusakile Mine Hospital, to the right is the Kitwe Agric. Show Grounds.. ahead, its the underbridge and torwards city…

    brings in plenty nostalgia.. hhhmmmmm.

  7. to #6 and #7. My goodness Zambians, what are we waiting for to get behind this CDP movement? How come I am just hearing about it. This is the movement to support for 2011. Is is truly Zambians behind this CDP or they are out of the country. I can’t believe it I am forced to comment today. I will certainly inform other people, there has to be a way we can support this party. CDP- Putting People First!

  8. 100 million tonnes of copper ore in Nkhana alone, yet the local work force is only around 7000 employees! We would not be as poor as we are if we learnt to manage our natural resources better.

  9. For our mines to remain operational , we need genuine and principled investors with great managerial acumen. The fake and brief case investors in their land are but criminals, always wanting to hold the govt at ransom… plan the gains and loss of world copper price well .

  10. to #6 and #7. My goodness Zambians, what are we waiting for to get behind this CDP movement? How come I am just hearing about it. This is the movement to support for 2011. Is is truly Zambians behind this CDP or they are out of the country. I can’t believe it I am forced to comment today. I will certainly inform other people, there has to be a way we can support this party. CDP- Putting People First. Visit their website

  11. #13 LNjovu , That seems a lucid analysis of health ,by the manifesto of CDP. Yes ambulance services as if I had seen it and so are the solutions to our troubled mine sector . Still reading on

  12. That road in the pic brings memories to me. if you move a further down 2 km then you turn right you reach Nkana East my birth place and the place of my childhood. Meanwhile, the turn that is seen in the pic on the left takes you to Nkana statium ‘pa cilata’ where we could see all the teams falling at the hands of the red devils. Nafuluka ku kitwe mwe!

  13. Thumbs up to the Mines Minister who gave them the challenge to surrender the mines back to Govt if they had failed to run them! He is a mining engineer and there’s no way MCM could dribble past him, the guy knew what he was talking about!!

  14. At least now Zambia has waken up from slumber. These so called infesters are there not for the good of Zambians but for their Nationalities. Let us now start telling them the truth as the Minister did. If they want to go, let them go and leave us with our mines. Have you seen how they are now looking foolish? They wanted to hold Govnt at ransom not knowing that Zambians now understand them well. They can no longer cheat on us as they did during the Chiluba’s regime. In fact we can tell them to pack and go. There is no business operated only when prices are high. These fake investors must be told never to mess up with us for once.

  15. ON-OFF KIND OF BEHAVIOUR IS STILL MIND BOGGLING FROM SUCH A BIG COMPANY! IS IT BIG ??? TODAY, WE GOING, TOMORROW, WE ARE NOT GOING. IT HAS TO DO WITH ISUES OF PAYING TAX TO THE GOVERNMENT WHICH MOPANI IS DODGING AND AVOIDING. HAVE THEY CUT DEALS WITH GOVERNMENT NOT TO PAY…..SILENTLY AND SECRETLY? JUST TO SAVE JOBS AND ROB ZAMBIA OF ITS NATURAL RESOURCES? YOU CANNOT TRUST SUCH COMPANIES POPULARLY CALLED INVESTORS…….SURELY THEY INVEST FOR THEMSELVES ONLY.

  16. Ehhe Bigge! Apo Mwalasa. Even if you keep stealing from Us! but God is looking into it. Every Dog has it’s Day.

  17. Mr Chitoshi further said the aging ore bodies currently being mined were now nearing the end of their productive lives, hence the decision by the Board of Directors to re-evaluate the potential of the synclinorium ore body, an as yet untapped resource of 100 million tonnes of copper bearing ore,located below the existing Nkana South Ore Body and Central Shaft Ore Body.
    AN ORE BODY CANNOT AGE IT CAN ONLY COME TO AN END. THIS THE PROBLEM OF HAVING LAYMEN AS SPOKES PERSONS. THEY WILL SAY ANYTHING JUST TO PLEASE THE LISTENERS EARS. HE SHOULD HAVE SAID THAT THE MINE IS NOW TOO DEEP TO MAKE ANY HOISTING OF PROFITABLE.

  18. Good work Mr mines minister. Hard luck to those who lost their jobs and to those who still have them, make the best out of them.

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