Friday, March 29, 2024

Mining Companies Accused of Exaggerating the Energy Crisis

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Konkola Copper mine shaft four in Chililabombwe Township
The Association of Mine Suppliers and Contractors has accused some mining companies of exaggerating the energy crisis being faced when making decisions affecting their future in Zambia.

This follows a decision by Chinese owned Mine in Luanshya on the Copperbelt to send 1,640 miners on forced leave and place Baluba mine on care and Maintenance due to the energy crisis.

Glencore the owners of Mopani Coppers mines one of Zambia’s largest employers have also announced intentions to suspend production for 18 months following a slump in copper prices.

And the Mine Suppliers have appealed to Government to immediately call for an indaba with the ministries of Finance, Mines , Commerce, Energy, Mining Companies , labour movement and mine contractors to address issues affecting the mining sector.

Association President Augustine Mubanga says it is unfortunate and a blow on Zambia’s Economy when Mines begin to close due to Electricity problems when government has put in place measures to address the situation.

He says Government is currently importing power to ensure that the mines are well fed to maximize on production to boost economic growth.

Mr. Mubanga appealed to ZESCO and the Copperbelt Energy Corporation to prioritize power supply to the mining companies if Zambia’s economy is to survive.

And Mines Minister Christopher Yaluma has appealed management at Baluba Mine to engage in dialogue with government as opposed to closing down and retrenching workers.

Mr. Yaluma says the issue of the mine laying off workers as a result of a drop in copper prices and power deficit is unfortunate.

He says Baluba Mine must realise that the drop in copper prices on the international market is a global issue which has weakened commodity prices in various economies across the global.

The Minister says the drop in copper prices is a global issue that Baluba mine should run with to see how they can cope and proceed with their business.

Mr. Yaluma also added that the power deficit is another issue that has come, stressing that Baluba Mine should NOT use it as an excuse to retrench workers.

He says the mine should see how it can manage its operations within the given constraints to maintain and sustain their operations.

Mr. Yaluma says he has already met representatives from Baluba mine and indicated to them that the power is highly constrained in the country.

He told ZNBC News in an interview that ZAMBIA will receive some premium power coming in adding that anyone that want to draw power will draw it on a premium price.

Mr. Yaluma said companies can utilise the premium power coming to compensate their current power deficit.

He said premium power to be supplied will however NOT be subsidized.

6 COMMENTS

  1. What do you mean the company should run with the drop in copper prices…. have you ever managed a business? This is a decision which any responsible business owner would take anywhere in the world. Go to Australia and go and see how many mines are being closed… the prime minister is not shouting no sense. Its a business DECISION, the current price can not support the business.

    You as a government should be finding ways of lowering the cost of business. For example why is the price of fuel in Zambia the highest in the SADAC region? This affects mines and agriculture.

    I now believe what the late Sata (MHSRIP) even if i was not his supporter said, “PF minister are useless”he called them ifipuba

    • @ TheEngineer

      Bro, why are you arguing with intellectual non-entities? Do you think that your reasoning will reach any part of “cadreism” infected brain?

  2. This is sad coming from leaders of an association close to mining operations as well as those leading the policy on mining in the country. The power problem COMPOUNDS the low copper prices and gives credence to the concerns mining conglomerates have about their operations and profitability going forward. If you are not being paid at work you certainly will face problems managing your domestic help at the house, won’t you? I think it is simple logic. We must stop playing politics (read: LIES) with reality for once in our fcuking lives!

  3. Fake investors! Copper prices above USD5,000 per tonne is a very very good price. They bought the mines when it was less then 2,000 per tonne

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