The Chamber of Mines of Zambia says if low copper prices continue on the international market the industry will have to review its operations in the country.
Chamber President Emmanuel Mutati says if the prices which are currently below 7-thousand US Dollars per tonne continue going down, mining firms might be forced to address their operations through cutting down expenses which include labour costs.
Speaking during a CMZ-Press Association of Zambia Media Breakfast in Lusaka today Mr. Mutati has noted that the global downturn has affected the copper prices the past few months.
He has also revealed that capital investments in the mining sector amounting to 8-billion dollars since 2000 have led to an increase in copper production currently standing around 700-thousand metric tonnes up from 260-thousand metric tonnes a few years ago.
Mr. Mutati has however stated that current projects such as the Kalumbila and Kansanshi smelter both costing over 2.6billion US Dollars are projected to increase copper production to about 1.5million tonnes per annum when completed by 2016.
He says this is expected to make Zambia the 4th world producer of copper from the current ranking of 7th.
Mr. Mutati who is also Mopani Copper Mine Board Chairman further reveals that the mining sector as of 2012 accounted for 74-thousand jobs an increase from 27-thousand in 2000.
He was also quick to note that a shortfall of 250 mega watts in terms of electricity generation is among the challenges being faced in light of high production targets.
The Chamber of Mines of Zambia President has further commended government for allocating 120-million US Dollars toward revamping of rail infrastructure in the country through Zambia Railways Limited.
And Konkola Copper Mines -KCM- Director-Strategy and Business Development Brad Gnanasivam reiterated his company’s commitment not to cut down on jobs in view of challenges being faced in the sector.
He says KCM has instead looked at ways of making its operations more sustainable without cutting down any jobs.
No back up plans as usual. Working in the mines is like walking on egg shells
chipimo said it!!! but anyway we´ll wait for ukwanomics for answers to the threat
Brad just the other week you where saying KCM’s best option is cut down on costs is by letting go of the 2000 employees, today your are saying something else..Ba KCM give us your honest stance.
We’ll thsi has already been predicted…. some bloggers insulted me.
The haneymoon for copper is over and Zambia will soon be in manigi trouble… with a government of NO Plan… trouble will be in the land soon
http://www.bloomberg.com/news/2013-07-08/what-s-good-for-u-s-china-japan-leaves-emerging-markets-losers.html
This was my post yesterday….
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
As expected you are very current with events. Just pity the dimwit who doesn’t want to hear the truth……there’s no need for that tick down. I guess the same person ticked down your contribution you are now referencing. Continue spreading the sane and rational word, my bro ! Peace!
Chinese ware houses stockpile copper and create an artificial deficit.In 2012, China consumption increased and the demand rose to 11% offsetting the 3.8% reduction in consumption from Japan, USA and the EU.There is surplus of copper at LME and that figure is part of the contribution from the Chinese bonded ware houses apart from the contribution from world production.In the mid 2012, China was being accused of controlling the commodity market artificially.We will see how this plays out as China economic growth has being predicated to slow down and every one is bearish about the market !
My post yesterday….
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
@Austrailan engineer…
i stand with you … i remember your comment
That is investors for you in boom times they don’t want you to introduce a tax on windfall but in harsh times they want you to suffer together.
That’s why I say, only our Engineers will truly save this country by making use of our God given Human and natural resources. Lets not put too much of our faith in foreigners or private sector to come and build our economy because it will take for ever. We need investors definitely to bring their paper money(cash), but we have more money locked up in natural resources and Human ingenuity.
The Chamber of Mines of Zambia is registered as an association for mining employers, be they large mining companies or single employers.
Mission Statement
Promoting the interests of its members, and encouraging, protecting and fostering the Mining Industry of Zambia and doing everything necessary and advisable for the advancement /achievement of those objectives.
I hope Mr. Emmanuel Mutati enjoyed his working breakfast.
Where the are cadres who were insulting Chipimo yesterday.Learn to look at facts sometimes before exposing ignorance.
The insulted me and have all run away…….
Africans,africans when will we ever get it right? Zambia produces about the same amount of copper as Chile and it gets the same int’l prices,Nigeria produces 2m barrels just like UAE and gets the same int’l prices.Kenya exports slightly more tea like Sri Lanka and get same int’l prices.Why is it that all three african countires come up short on development,investments and per capita income when compared to their equal competitors working within the same int’l trading environment?
Its because most Africans no matter how educated think in there native languages… hence concepts of economics and development can not be understood in bemba, njanja, lozi etc etc
For exaple the concept of time and length can never be understood in any African language. Thats why you find that Africans are always late…
Secondly as an Africa how far it is from one place to another … the will tell you anything because the can not understand length.
Eish, Bwana Engineer then how do you explain the common occurence of very astute african businessmen who had little or no formal education or very educated fools who are financially illiterate and are very bad managers of their own monies? Your analysis ain’t right.
In statistics we call those few people out layers…..
Dont worry the copper price will rise by January.
After a series of delays, the $6.2-billion Oyu Tolgoi copper and gold mine in Mongolia has started shipping copper concentrate to customers in China, Rio Tinto and its 51%-owned Turquoise Hill announced on Tuesday.
A convoy carrying some 600 t of concentrate departed from the mine, located in the Gobi desert near the border with China, on Tuesday, with the remainder of the 5 800 t order to follow over the next two weeks.
The mine is expected to produce more than 1.2-billion pounds, or 544 000 t, of copper, three-million ounces of silver, and 650 000 oz/y of gold in the first ten years of operation.
Seven years later, at its peak, it is expected to produce about 1.7-billion pounds of copper and one-million ounces of gold.
The planned copper concentrator at Oyu Tolgoi would be the largest industrial plant ever built in Mongolia, processing 100 000 t/d of ore, or 36.5-million tons a year. By the end of the fifth year of operation, the concentrator’s capacity would be expanded to 160 000 t/d or 58-million tons a year.
FALLING COPPER PRICES IS A DIRECT RESULT OF NOT HAVING THE USE OF IT IN MANY COUNTRIES THAT PRODUCE COPPER. ALMOST ALL THE COPPER IS EXPORTED. PRODUCERS ESPECIALLY ZAMBIA NEEDS TO USE UP ALMOST EVERY COPPER IN THE MANUFACTURING INDUSTRIES SO THAT DEMAND FOR COPPER ABROAD IS CREATED. GOVERNMENT MUST HASTEN THE ESTABLISHMENT OF MANUFACTURING INDUSTRIES TO USE UP ALMOST ALL THE COPPER. WE SHALL SEE HOW DEMAND WILL RISE AND SUSEQUENTLY FALSING THE PRICES OF COPPER ON THE INTERNATIONAL MARKET TO RISE, TOO.
for how long are u going to produce copper and u never get rich divesify