Mines Minister Yamfwa Mukanga has said that government was capable of taking over the operations of Konkola Copper Mines(KCM) if Vendetta Resources limited failed to run the mine. Mr. Mukanga was reacting to sentiments from the Chamber of Mines of Zambia that has insisted that the planned job cuts at KCM are in the interest of the mining conglomerate.
The Minister wondered why KCM plannned to lay off 2000 miners when other mining firms were employing more miners. The Mines minister said this in an interview in Kitwe at the ongoing Copperblet, Mining and Agriculture show.
But chamber of Mines General Manager Frederick Bantubonse insisted that issues at KCM are internal and are in the best interest of KCM operations. Mr. Bantubonse said that government should seriously examine the reasons why it privatized the mines 20 years ago before discussing any issues regarding KCM.
Mr. Bantubonse felt that mining companies are running better in private hands which was not the case when government was running the mines which saw production drop from 750 thousand tons annually to 250 thousand tones per annum.
He has insisted that the creation of new jobs in other mining companies should not be compared to KCM because different mines have different operational challenges and production costs.
KCM last Friday announced its intentions to retrench two thousand workers, a move that government has opposed.
Good to hear that.Slowly i`m starting to piece this story together.I will wait for more data before i start making comments on this issue.
To let kcm go on with this mr bantu will be the most graviouse mistake zambia has ever made sir do you know how many pipo have lost employment at. Kcm just this year we r talking lta. Mms gilgo ,carmine,the list is endless sir chingola or chililabobwe is not like lusaka or kitwe all these joblosses will. Hit these towns hard find time to understand why pipo r so much against these indians sir before u comment
@ta
its actually you who has no understanding of what you are talking about, Mr. Bantu has vast experience in the operations of the mines after having worked for the mines and holding several high positions. so he is well positioned to give advise to GRZ on this issue lad.
Retrenchment is the name of the game in the mining industry all over the world, ZCCM always used to retrench when ever copper prices went down.
The reality is that if KCM does not retrench and the cost of production remains the same in terms of Electricity and fuel + the low Copper price the whole mine will close down. Now i want you to imagine that my Friend.
This altitude of titi for tati is not good. Lessons have been learnt from the zccm of kaunda era i don’t think the same mistakes won’t be reapeated.50 of independence we must have great entrepreneurs who can propel those mines. Yes we can !
What is government waiting for? Bring back Edward Shamutete
Dear Govt, please take back KCM because those Indians got what they wanted, they have maximised their profits and now they want to play games. Nchanga Open Pit was second largest after Chile now it is like a kasido mine, even kajem is bigger than KCM. MMD is to blame to give this Chapat boys such a big mine. Tell KCM to send all the Skinny indians back to Mumbai. I urge PF govt to look for Jordan Soko in the Archives so that he can run that mine. After Anglo we made KCM survive even this time we can make it work. Fred Bantubonse at Chamber of Mines failed to survive on his own, he speak as if he is not Zambian, he should follow the Indians to Mumbai.
Dear Govt, please please check operations and management at Lumwana, when this mine was run by Equinox it was making profits but ever since Barrick can on scene it is a different story, you know why? because of poor leadership. The company has too amny Australians doing nothing, At this mine all whites are senior supervisors and above, how can Ken James who came as crane supervisor be given Vehicle repair workshop. How can they give Guy Cordingly the managership of the process plant who cant listen to any advise, he thinks he is the Ayatollah (Supreme Leader), How can you have a baby Simon Kinver run LPDC, this palce is full of comfusion. We had fewer whitess in the days of Harry Micheal but now it is free for all and it is a field day.This mine is capable of producing but it hasnt got le
The same with ATS, all the unemployed south African Boers are coming to ATS Lumwana and they know next to nothing but get paid huge sums of money. Every time to renew they work permits they have to bribe the HR person and immigration guys.
The reason why Equinox sold the company to Barrick is that it saw beyond 2 years that it was going to be hard to run Lumwana profitably because of complex issues. Equinox is more of an Australian company than Canadian that’s why you see more Australians at Lumwana. Zambian Government, ZCCM failed to run the mines profitably. Sorry, the minister is just impressing the workers he has no substance. The minister cannot compare one mine to another because of complex issues and operating costs.
jordan soko if this man is alive then no problem for gevrmt.He can and he has done it b 4
Please, let Vendetta go even NOW. Our copper will still attract other investors & copper prices are being projected to rise to US$15,000 per tonne in the next 10 years! Mugabe grabbed 51% from foreign investors and they’ve not left Zim, so let’s not succumb to these dirty and cheap threats!
ths is da chance the government has to let these dirty indians go to cultivate paprika & chilli no other chance will present itself like this..to add salt to an injury pliz government order this indians to employ da very 2000 people..
Very mature and sensible comment Mr. Fredrick , how can we compare new mines creating job Vs old 50 year mine like KCM creating job ? kansanshi and lumwana have new projects and new jobs will automatically be created but still they are 50% less manpower strength as of kcm ??why we dont tell them to employ 9000 people, question is keeping 7000 happy and prosperous employee or 9000 unhappy lots , suggest union and kcm should talk and find solution together , at the end reputation of our country zambia as investor freindly should always remain , we cant afford banks and outside world considering investment risky
Please govt, this is the chance for us to take over our mines, or atleast let the team of Zambian indeginous investors pull the resources together and partner with govt. Why do we want pipo to do things for us? Cant we run the mines? 50% individual Zambians and 50% GRZ. The country we be well off in 3 years
If its labour costs they want to cut they should send back the hundreds of useless indian so called expatriates that are just loffing and making thousands of US dollars. Zambians should only go after all the Indians are gone!!!
Unless we begin to appreciate that the land of milk and honey is indeed ZAMBIA we shall never progress. NATO [no action talk only] tactics are just another futile attempt to sound
populist!
If they insist that they want to chase the 2000 workers, then GRZ get the mine back. Mwanawasa did the same and things worked out well. These Indians are playing games just coz subsidies on fuel have been removed. They make supper profits, let them go and others will come for it. Dont listen to them suggesting the non sense of retrenching the 2000 workers. They are not serious period.
Peace and Prosperity to mother Zambia.
I am very angry such that if given ‘munchini’ i can blow off someone’s head .l am angry because(1)ba kcm batumona upuba (2)We seem to have accepted that id iocy by remaining abazinkimana 4 50years.Shame upon o u Zambians!Wake up from slumber!
Are you telling me that Zambia has never produced anyone that can propel the mines?U have done caurses on all areas that can grow these business ventures.Zambians just what is the problem?kushama nangu kufita,elo mano ayacapa? l think amano.
Gentlemen please! Hold your horses now! Let not xenophobia spiced emotions cloud reason.
When a Government Minister makes any popularist hint of nationalization of a mine in this time and age, the noise will sound sweet to the ears of the Unions in very short term, but the ripple effects will be too ghastly to contemplate in the long term.
These mines are business enterprises that run on a purely profit and loss basis. They have financial experts that calculate risks years ahead and when these factors outweigh the profitability,these people move like bees to protect their investments. Most of these monies they plough into these ventures is borrowed money from International banks who watch its application and use like a hawk watches its chick from birds of prey.
I have no doubt that…
Gentlemen please! Hold your horses now! Let not xenophobia spiced emotions cloud reason.
When a Government Minister makes any popularist hint of nationalization of a mine in this time and age, the noise will sound sweet to the ears of the Unions in very short term, but the ripple effects will be too ghastly to contemplate in the long term.
These mines are business enterprises that run on a purely profit and loss basis. They have financial experts that calculate risks years ahead and when these factors outweigh the profitability,these people move like bees to protect their investments. Most of these monies they plough into these ventures is borrowed money from International banks who watch its application and use like a hawk watches its chicks from birds of prey.
I have no doubt that…
… I have no doubt that the removal of fuel subsidies by Government though an economically wise decision, has had an influence on KCM’s decision to lay off the 2000 workers. There will always be “collateral damage” in these things Gentlemen. Government has led the way, let others follow.
Guy Cordingley has been on the run since 2006. He ran away from the most profitable mine in the world, Grasberg in Indonesia. He was a failure in Turkey. He failed to perform in Vietnam. His ship was sinking in Kyrgyzstan. YET WE EMBRACED HIM AS A SUCCESSFUL HERO HERE IN ZAMBIA?
Eddy Shamutete and Dr Silane Mwenechanya ran KCM efficiently with a copper price of $1,500/tonne. Its demise came when the profits were used to buy Mulungushi Traveler and Kasaba Bay lodge. Please check the archives!
Mike forgot to mention Cordingley’s abysmal failure at the Wheal Jane mine in Cornwall, UK
I always thought the company was called Vedanta though.
WHY ARE CONTRADICTING YOUR ACTING PRESIDENT ?
The indians must pack up and this could come out as a an opportunity to reposses what was given as gifts to these morons. Most mines in Zambia run at $1.5 / Ib copper ($3300/tonne copper) and at the current price of $3.3/Ib ($7300/tonne) copper the earning before interest , tax and ammortisation is very superior (mouth watering for any investor). If we check the platinum business here in SA the platinum price is at about $1400/ounce compared to the operating cost of $1100/ounce and non of these platinum mines ever threaten to close the mines. Let those chaps pull out and my Anglo is ready to pounce back.