An Economic Consultant has urged Government to clearly state its intended % shareholding in Luanshya Copper Mine on the Copperbelt Province which was recently sold to the Chinese Non Ferrous Metals.
David Punabantu told ZANIS in Ndola today in apparent reference to Mines Minister’s recent announcement that Government will increase its shareholding in the mining companies in a bid to have a stronger say in the running of the mining sector in the country.
Mr Punabantu noted that it was important for Government to agree with the new investors on the shareholding adding that having a stronger shareholding in mining companies in the country, would also enable the State to curb possible exploitation of workers and national resources.
He advised that Government should not merely focus on mine development but should equally ensure that possible unfavourable decisions by some investors in the mining sector are curtailed.
Mr Punabantu pointed out that it would not be in the best interest of Zambians to enrich the Chinese economy at the expense of the majority impoverished Zambian citizens.
On Labour laws, Mr Punabantu prodded Government not to be pre-occupied with opening the mine but in the same vein enforce these laws which should be fully adhered to by the Chinese investors.
He further advised Government to be wary of the conditions that will be offered by the new mine investors so that Zambia fully benefits from its copper resources.
During the low copper prices on the global market, Mines Minister Maxwell Mwale announced that Government will increase its share holding in the mining companies to about 35 per cent to enhance its say in the running of the mining companies in Zambia.
The Minister’s announcement followed threats by some major copper mining companies to close due to low copper prices which were obtaining on the global market at the time.
ZANIS
bachelwa abantu ukuposapo tafilepanga sence
There are alot of miners out there waiting for mines to be open can government do something about the remaining ones. Nkana smelter is still close, mcm and chambeshi are still waiting for government to move in. Whats happenin with the remaining ones
This is where we do not want to do basics. Why can’t we for once come up with a policy which stipulates GRZ’s partnerships? We can always fall back on what UNIP started through their Humanist Part 2 or 3 where they clearly stated the level of privatisation such as State with State, State with State and with Private Company, or State with private company etc. As such we have Tazara for instance but we could do better than that when it comes to efficiency. In this situation, why should GRZ peteka its muchila and settle for 35% and not 51% even when they have seen the rate at which that mine has exchanged hands? If it is the fear of technical capabilty and theft by Zambians, we can fall back on the other partner’s experience and tight controls respectively.
Government intention in this direction is progressive. What needs to be done is precisely what #2 Kamunyamna says. I agree with your observation. This will ensure avoidance of asset stripping when the investor pulls out as what MCM started doing when copper price went bust at the world market. The move will also ensure stable investment and at least job security to poor zambians who are the first ones to feel the pinch whenever investors wind up the businesses.
Our leadership makes me SICK. We are lways borrowing money to put it in things that will never give us returns and then we cry that we are unable to pay back our debts. We have been running mines ourselves as Zambians. Why cant we use the same experienced personnel to run these mines financed by the same loans instead of waiting for these so called investers or infesters who have no good will for our country. They invest when they feel like, pull out whenever and our brothers and sisters remain with no jobs. Why are we scared of running these mines ourselves? Why put borrowed money in one project (which does not produce any retains) to help a handful people and all of us get affected by the debt?