National Restoration Party (NAREP) president Elias Chipimo has predicted massive job cuts in the country’s mining sector.
Mr Chipimo told Qfm News in an interview that this is because of the current economic conditions prevailing in the global economy resulting in low copper prices.
He said the increased cost of production in the mining sector as a result of the PF government’s introduction of new laws and regulations without consulting is another factor that will lead to job cuts in the sector.
Mr Chipimo noted that the combined effect of the PF policies and global the economic conditions are impacting negatively on Zambia’s copper mines.
The NAREP leader said the looming state of affairs is sad noting that instead of more jobs being created, people are expected to lose jobs.
So now you are becoming a pessimist bosses ? Good observation though.
The truth about life and the economy is that it is easier to be a doomsayer than to preach optimism. I can give an example- say I randomly pic a group of infants born today at UTH and state that “none of them will be CEOs”- it is highly likely. Why is it that no opposition party has stated a blueprint of their economic policies? It’s because they all do not policies and as much as we aren’t PF supporters, they came into power because they at least laid out something that ‘looked like’ economic policy.
Well said.
I’m suprized, PF never laid out anything on the economical front.
They were busy saying jokes during their rallies. Bufi too much.
This did not make any sense.
@Pobo; The statement reads ‘something that looked like an economic policy’. Their message resonated with the average person’s desire to have less taxes and to the corporate person regarding Windfall tax, unlike the current opposition talking about their persecution at rallies and what- note, how can an average person really connect to that?
Prophet of Doom
What is the problem with this rat called chipimo? Is is because the savings he made from the Brazil trip with UKWA has finished? Who cares what this rat speaks? Let him just continue his adultery with UKWA! You called HH bitter when he mentioned the same and today you want to come out as though you are a saint. Is that positive criticism? What solution is there in this statement from this rat? Well, we resolved with my friends that this time around we will only vote for a candidate that is consistent. We will soon start campaigns door to door night campaigns for HH in Muchinga, Luapula, Northern and Copperbelt provinces. We know that such a mission doesn’t require a police permit.
Mwapunzila ma insults how do you expect Rats to vote for your candidate
Bupe, your language is very bad. I guess you take it after your leader HH.
Use good language if you are to win people’s hearts. Add value as a blogger, not insults. Am sure Chipimo has the same body parts just as you do. So be vareful what you call him
positive thinking and observation but its unfortunately if you are given the chance to rule zambia your policies will be worse than PF.
Those of you who read my posts will recall that i predicted it 3 months ago. Copper prices are set to drop on the world market due to over supply (3 major mines coming online) and projected contraction of the Chinese economy
Long term US$6000 KCM and Mopane will be making massive losses
My other prediction… Zambia will fail to pay the EURO bond as the coupon on the bond will increase significantly
You sound as though you feel a sense of greatness for your ‘prediction’. However, every individual understands that when any product is at an all- time high, the only trajectory is downward. Job losses are inevitable in any company, especially one in the machine- intensive industry where heavy financing through loan capital is predominant. Regarding the Eurobond, it is impracticable that you state that the government will fail to pay due to an increase in the coupon. The interest rate is fixed and was not based on the LIBOR or any other basis measurement so that’s off. $750m is not an amount that can give ZRA headaches to raise, really.
I do not feel a sense of greatness… i am exposing the sense of ignorance of your government. Chilean government last week predicted significant loss of government revenue due to the foreseen fall in copper prices..
What has your government told you? Instead they are borrowing money everywhere.
Secondly the significant strengthening of the USA dollar is going to hit commodity producing countries hard… Zambia’s current account deficit will balloon and the kwacha jsut like the Rand, Aus Dollar and Brazilian currencies will all head south.
Watch this space…. its called ECONOMICS
Firstly, you have got your economics wrong, when the USD Dollar strengthens, it enhances export profits because your revenues mean more locally, so the notion that a strong Dollar means a bad economy is far fetched. Secondly, have you stopped to consider the fact that the IMF projects that Zambia and Mozambique will have the highest GDP growth rates for the next decade up to 2022 at 7%+? You talk about economics but you get the gist of it wrong, which country in the world is not an exporting country? In other words, you predict a global downfall except for the US?
Again you are wrong… a strong USA dollar only make sense if you are a manufacturer like Japan. Zambia is not a manufacturer its a an exporter of primary raw material… a weak Kwacha mean import bill on Oil and primary capital equipment for mining. A huge import bill on oil for Zambia mean increase in current deficit resulting in the weakening of the Kwacha. Remember most imputs into mining in Zambia a dollar based so a weak Kwacha does not help anything.
Dream again young boy, while new investors are coming and our copper is gaining value because demand. Unama bandani ka Chipimo iwe?
You must be blind, that why you could believe money in your pocket in 90 days
PF and Sata in particular appeal much to semi-iliterates,unprincipled pipo like Munkombwe,Masumba,Namulambe,Ngoma,Taima etc,and also the povery stricken pipo.
We cannot build a nation on donations. We look too much to the mines. Most of our pple are in the poor rural areas and engaged in rain-fed agriculture. Our govt, IMF and WB are busy killing this most important sector for us. Poor agric. policies ( ‘Poverty is a man-made problem’. Mandela)… How I wish all those so called politrickans could get the msg in ‘ Revolt ain’t a Revolution’. Agriculture is the solution…the Green Revolution in Asia did not happen w/o involving the smallholders farmers. Why not follow their model….?????????
Copper mining. Why can’t govt get local mining surveyor, geologists, metallurgists, technicians engineers, technologists, technicians, workmen and workwomen, assemble jack hammers, explosives, conveyors, crushers, construct smelter and refinery, get haulage trucks: with all these establish another mine, run by zambians, for zambians? Can such a project work? If not why can’t such project work?
Mining is not an attractive business and am confident that no Zambian is willing to take such risk when similar profit margins (mark my use of the term) can be made from say, selling fast-foods. A 21st Century government must not support socialism and all its traits, why support such a project simply because ‘it is fashionable’ to have Zambians also participate in large- scale mining?
Chipimo predicts job loses, seemingly, with relish. Is Chipimo, really, normal?
how come the real prophet of doom hh did not see this? zambian politics geting dangerous the opposition is constantly wishing for the worst
chipimo, were you given that K30million you wanted when the police disrupted your general conversion in kitwe?
Problem we have is that opposition like to make alarming statements. Chipimo was very constructive but he is slowly getting into the ditch of HH and Nevers Mumba. He has started opposing everything that this government is doing and wait a minute his political fortunes will start dwindling very soon.
I thought this moron called Chipimo had brains. By the way what are his qualifications and capability to analyse technical and finance matters. We the zambian enginners run the mines before privitization when the operating costs were higher than the copper selling price. The copper price at $7000 per tonne currently ($3.2 per Ib) is still extremely attractive when compared to the average operating cost of most mines at $3300 per tonne ($1.5 per Ib). Do not open your mouth and comment on something you do not understand unless you are just trying to incite or alarm the nation. The era for supper profits for the mines is gone and take my word the current prices are the realistic ones and the same goes for the oil prices.
Hahahaha
Go read the annual financial reports of the companies. Its public knowledge… apart form Lumwana and Kansenshi, all other copper mines in Zambia produce copper at US$5000 – 6000 as direct cost. If you add capex that cost is US$6500.
What you probably also do not know is that copper is not like Gold which is sold at spot price in most cases… copper is sold on long term contracts. What is see as spot price is not what the mines are selling at.
While you can insult Chipimo, he may just know more than you know..
The reality is the copper honeymoon will soon be over
Great Analysis, I am also disappointed in Chipimo, how can he make an alarming statement like that sure? He lacks technical knowledge on mining and finance, therefore how can he comment on such matters? He is trying to incite people to raise against the government which I see he will fail. Try to gain cheap political propaganda will not work for Chipimo, he is becoming a moron just like HH and Pastor Mumba.
we like praising these investors and we always give them good incentives that us Zambians will never get when we invest in foreign companies. Let the introduction of new laws and regulations benefit Zambians and not foreigners. Let these investors feel the pinch as business is not that easy to do. I fully support PF’s policies.
Am sure you do not have a brother or sister on the mine who will be on the street when the investor feels the pinch…. i guess PF will give them other jobs… in 90 days
@Engineer; See, none of us here have stated allegiance to the Patriotic Front, we are simply arguing against extremist doomsayers who make the easiest of predictions without a line of thought, that reminds me of the many prophets in the past who predicted that the world will end in the year 2000.
The Australian Engineer i do not agree with you, you are frustrated and angry pathetic PF critic, I am a fairly educated fella with B.Eng from unza as well as a M.Sc Eng from capetown university, I have worked in the copper mines in Zambia, Anglo platinum mines and currently in the worlds largest gold refinery here in South Africa and believe understand the mining business at avery higher level. By the way, what are your qualifications?Hope you not an artisan and claim to be an engineer.
He must be a Wikipedia Student or google fanatic who believes anything he reads lol! Probably watches bloomberg news and does not get how the markets behave to swing demand or produce a false alarm!The Chinese are good at it.
Super job done PF!
Job losses are worrying. Though the key issue is the extent of
Investment in the economy. The fact of the matter is the copper
prices are determined elsewhere. But more needs to be done in
Agriculture and small scale mining where the prospects for jobs
and growth are best. The talk of Uranium mining should be turned
quickly into action. And beneficiation of the mining sector must
be discussed more deeply.
Mr. Engineer; you seem to avoid statistic; analyses show that China consumes 35% of the world’s copper and that in the year 2012, demand surpassed supply by approximately 400,000 tons and value is projected to increase by an average of at least 30% in price alone by 2020. This is a study done by outsidergroup (outsidergoupr.com). With China’s desperation for development, if there will be any dramatic fall, it will happen well after the year 2020. Look, you have lost a simple argument but that’s the gist about debate- arguing pro the simplest and obvious notions is dangerous because the audience expects your thoughts! Schooled enough?
Don’t be stupid Ka Chipimo what can you tell us that we have not heard in politics? Because we all know how you play your dirt game of politics.Even if you were given a chance to rule you would even do worse things than what your fellows have done already.So just shut up and focus on how best you can improve your life.
Stop insulting Chipimo, he may know a bit more than you…..discuss issues not insults.
Chipimo is not being genuine, these multinational companies operating in Zambia are siphoning over $9 billion tax free from the country every year! This was confirmed at the last G8, that lady from Vision Aid was there. When the CEO’s from these mining companies were asked about tax avoidance, they said it not their job to set the laws on tax, it was the job of the host governments! More Money is leaving the country than FDI coming in, the PF is doing a good job to correct this anomaly and seal the loopholes for tax evasion like transfer pricing, which is rampart among Zambian mining companies. How do you consult people who are stealing from you through sophisticated tax accounting systems? These firms have to follow Zambian tax laws not laws to benefit them only!
His observation is like saying, it will get really muddy when it starts raining. Ofcourse, it does not take a genius to figure that one out.
The usual Zambian behavior-POSE!.Who asked for your qualifications?
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