KONKOLA Copper Mine (KCM)’s decision to lay off more than 1,500 workers has not gone well with various stakeholders with some calling on Government to take over its operations and others suggesting that a better equity partner be found for the mining conglomerate.
Mine Workers Union of Zambia (MUZ) president Chishimba Nkole says it is important that government takes over KCM until it finds a suitable investor to run the mine.
“KCM’s plan to lay off more than 1,500 workers is unacceptable. Government needs to find a serious investor for the mine to safeguard the jobs of the workers,” Mr Nkole said.
He said KCM has failed to run the mine and that this is not the first time that the Indian owners are threatening to retrench some workers despite government’s intervention. Mr Nkole wondered why other mining firms who are facing similar challenges like KCM have not resorted to laying off the workers.
He said should the 1,500 workers lose their jobs; a lot of families will suffer because KCM is the largest employer after the government.
And National Union of Mines and Allied Workers (NUMAW) national treasury Saul Simujika expressed concern over KCM’s plans to lay off the more than 1,500 workers.
Mr Simujika appealed to the government to intervene in the matter to protect the jobs for the locals.
“As a union, we are aware that KCM is facing numerous challenges but they should engage the union officials and the government to resolve some of these problems they are facing,” he said.
And in a walk-in interview yesterday, opposition Alliance for Better Zambia secretary general Eric Chanda said it is unfortunate that KCM has decided to increase unemployment levels at a time Zambia is looking forward to the creation of more jobs, especially in key economic sectors like mining.
“KCM has become irrelevant to the economic equation of the country. At a time when Zambia is crying to widen the taxation system in our country especially the mining sector, KCM has always stood up to say ‘no’ to any plans to broaden the tax base in the mining sector. This is why we are saying KCM has become irrelevant to the economic equation of this country.
“To this effect we call upon the PF government to move in quickly and save economic development of this country. The best way forward, since these people have made their money, is to part company with them. Let the PF government look for another equity partner who will help in job creation…who will adhere to our proposals in terms of taxation system in the mining sector,” Mr Chanda said.
He said despite Zambia being Africa’s largest copper producer, the country’s debt ratio to gross domestic product is about 37 percent and yet mining firms have continued to pretend as if they are not making profits.
“This is totally unacceptable in our economy like Zambia. It is high time we woke up as a country and as a leadership of this country whether in opposition or ruling party because this concerns our brothers and sisters on the Copperbelt. This concerns the economy of this country. KCM has made its money and this is why they don’t care whether they are kicked out or not,” he said.
Mr Chanda called on Zambians to realise that copper is a wasting asset and this is the only time the country can make money out of the mineral.
Emotional outburst is natural for those who lose jobs and have worries of school going children, food on the table, old parents, young children, extended family, sick relative and similar realities of life.
But union leaders, politicians and economists shall analyse the issued before running to the press and be seen to the first ones who care about the ones who lost jobs.
I miss RB too much. Instead of resorting to outbursts and encouraging his party cadres to call all kind of names, he brought in the Chinese, gave them concessions to bridge the gap left by Luanshya mine’s abandonment by short sighted investors.
KCM has many challenges. It is the wettest mine in the world. Cost of producing a pound of copper is one of the highest in the world. Mine needs government support and…
KCM does not need government support. They knew what, from day one, what they were getting themselves into.
They have fooled you on taxes and now they are fooling you again on employment.
KCM does not need government support.
They knew what they were getting themselves into.
KCM like all other investors in Zambian have been cheating
the government out of taxes, simply because the politicians
are weak and corrupt.
Everyone knows KCM is biggest employer after goverment.They have maintained for years, now when operations are not going well, more automated equipment are in use.Still goverment and people are not understanding the pain and also trying to impose taxes.Which any troubled company will oppose.
HOW CAN WE ALLOW A POOR COUNTRY LIKE INDIA TO HOLD US TO RANSOM?? THESE INDIAN CHAPS LIVE IN CAVES WHERE THEY COME FROM – THE MOMENT THEY SET FOOT IN ZED, THEY BECOME SMALL KINGS. THIS IS REASON ENOUGH FOR US TO KICK THESE PIRIPIRI EATING CHAPS CALLED ‘KA CHULE MWANDI’ (KCM) OUT OF OUR LAND, WE SHALL LOSE NADA! BETTER GET A MALAWIAN INVESTOR THAN THESE KABOLALAS….ATASE!!
Ba Chanda Bakalamba you are correct to say Copper is the finishing asset. The life span is finished so Indians are supper Accountants world over. If you read and understood their analysis then you wouldnt bother to pickup a quarel with them. Those 1500 employees to be retrenched can be employed by GOVT and posted to new 30 districts. It doesnt matter even if they are doing nothing they can be paid like the D Cs /DGs. Indians are running a business bro not social welfare. The shareholders are wainting for their dividends not budget over runs synonimous with Zambian budgets.
I totally disagree with you buddy.
A Japanese chief executive once said, an accountant
is not the best person to run a company, because an
accountant does not know anything about product
quality.
If government absorbs KCM employees, don’t you
think other companies will follow suit. And where
will the government get the money to pay these new
employees? KCM hasn’t been paying the rightful taxes
to the Zambian treasury.
Please these bastards from this country and bring Anglo-Americans,we need abasungu,not ba mwenye,they are useless,they ll soon start stripping off the mine assets like they did in luanshya remember these are the same people.
.They have brought Indian companys .so that we Zambians becomes casuals.zambia was given to us God and every thing in it.So please. People of Zambia if god wanted copper to be in India he should given but he gave us .so that out of copper we can put. Food on our table
Zambia has a lot of mining engineers why can’t they run their own mines?
ask the people of Luanshya what they went through they will tell you. People of Chingola the rains have just sterted lets just do farming each family has to do 1 Lima.next year will be better. People of Luanshya have learnt how to do farming because of the Binani saga they went through. KCM employees expect he unexpected. the little you will be given do not think of buying a car and beware of con men will be all over Chingola.
It is easy to blame investors and to call them names, and that is xenophobia, but we need to understand the challenges KCM is facing and whether the government has taken any interest to resolve the matters. If it has, then it cares for the people’s jobs and if not, I leave the conclusion to Zambians. How can the world’s wettest legacy mine be paying the same amount of power tariff like a new open cast mine? I understand the predicament of KCM if they are paying for over 50 megwatts of electricity to pumping out water. That can run a medium size enterprise. Would that not be a loss on the company?
kumar has failed as ceo, these guys are going to leave as lemping as copperbelt something be done about it weres the mines minister? these indians have destroyed most of the equipment thers no realiable storck in the stores department ,i mean wat kind of a investor is kcm in the mining sector FAILURE
these idoits let them go , they have made there profits period. @9 i agree with u that these guys they have been using the machinary which ANGLO left. To me a person who has worked for these piripiri chaps , the problem with kcm is not what they are telling us but a luck of re investing in machinary over the years and we saw this problem way back in 2007 . If u go to nchanga open pit to day there are hardly any machinary to do the mining , no wonder they had to close east mill becouse there is no cupper coming out from the pit. The indians are just interested in the smelter becouse they know they can still make money without mining.
Its not right to call on PF Govt to kick out KCM and start looking for an equity partner. Its a huge challenge which needs pipo with big brains to sit around the table and get to core cause of these problems. Name calling will not help. Investment has become difficult to come by.If KCM is trying to blackmail Zambia because they have made their money and they dont care then its unfortunate. Every investor is motivated by huge returns on his invstment and if returns are shrinking then solutions have to be found in terms of investing in modern equipment reduction of production costs which includes labour etc. U can not maintain a large labour force as though its an army no no. KCM like any other investor is serius in business to make huge profits and nothing else. Its up to grz regulators.