PRESIDENT Edgar Lungu has stepped in at Luanshya Copper Mines (LCL) and ordered the mine owners to rescind the decision to lay off 1,200 miners at its Baluba Mine.
President Lungu said the decision taken by LCM management is null and void and an expression of arrogance after Government asked the investor not to take the harsh action to lay off workers.
President Lungu has since directed Mines Minister Christopher Yaluma, Fackson Shamenda for Labour, and Information and Broadcasting Services Minister Chishimba Kambwili to hold an emergency meeting tomorrow to address issues affecting Baluba Mine on the Copperbelt.
The President’s message was communicated by Mr Kambwili who is the Chief Government spokesperson when he addressed hundreds of miners in Luanshya’s Mpatamato Township yesterday.
Mr Kambwili said he had discussed with the President on matters affecting the smooth running of Baluba Mines were discussed.
“The decision to lay off workers is null and void. As far as government is concerned Baluba Mine is still operational and workers are still working,” President Lungu said during the discussions.
Mr Kambwili during his address to the miners urged mine investors to respect Zambians and not to abrogate the Minerals and Mines Act.
He said it was important for the mine owners in the country to involve Government before rushing to take steps such as cutting their labour force.
He said amid cheers that Government would ensure a consensus was reached in the matter involving the affected Luanshya miners.
He appealed for calm among the miners as Government strategizes on finding an amicable solution to the matter.
Government had already taken steps to intervene in the concerns of reduced power supply to Baluba Mine.
To this effect communication between the Copperbelt Energy Corporation (CEC), LMC and acting Mines Permanent Secretary Paul Chanda was already taking place to provide a solution to the problem.
A letter dated September 7, 2015, from Mr Chanda to CEC, indicated that concern was raised by LMC over plans to reduce power supply by 30 per cent and the power company was advised to reconsider this decision.
“If indeed you intend to restrict the power supply, I suggest that you reconsider your decision and see how best you can manage this matter to ensure continued operation of Baluba Mine and Concentrator to avoid placing such a huge number of employees on forced leave with uncertain future,” Mr Chanda stated in his letter to the CEC chief executive officer.
LMC confirmed that 1,200 miners had been sent on forced leave while the attendant departments had been placed on care and maintenance.
Ndiye bupuba ubu. How will Luanshya mine bring back workers if there is not enough electricity to operate the Baluba mine? Where will the mine owners get the money to pay workers salary if there is no production?
This is the presidency you wanted at all costs a Jamasoni Lungu without knowing fully the demands of the job.
Meanwhile things continue to fall apart for Lungu
Viva HH
Kambwili the Ogre! Luanshya is dead and bullying Mine owners won’t resurrect the town.
The president with a socialist mentality running a Capitalist country is equal to Zero. So the mine owners will continue paying miners even if they are not making what they expected???This move will scare away would be investors Mr President. Laying off workers is not only happening in Zambian Mines but also here in Australia thousands of people have lost work in the mines. They have been made redundant (laid off) but government has never gone to a mine to threaten the mine owners. This move kikikiki smells like dictatorship mentality lol. What would expect learning from Mugabe?
Who owns the mines? The Government or a private enterprise? If it is the Zambian Government, fair enough but if it is privately owned, this directive is null and void ab initio, unless government will pay for the non productive salaries that will ensue for keeping workers idle at the mines. Sort out the electricity supply and then you can talk, not the other way round. This directive affects the decision of potential investors into Zambia.
You have not heard that Zambia is importing power?
Zambia is importing power fro Namibia… Namibia of all places! Am shocked, we need to send our Zesco guys to shool in Namibia. By the way why doesnt pf govt give those miners jobs in ZNS to construct rural roads? Since pf cares so much about the poor!
The mines pay very little wages and rake millions of USD
They can afford to retain their workers from their reserves, don’t be fooled but you cant have it both ways. You don’t divorce a woman all of a sudden because you have lost a job, no you find solutions and rectify the situation by standing with them during the difficult times.
These mines have made millions and millions of dollars, during these temporal trying times, they still have enough monies to pay these workers.
Thanks
BB2014
To add to Mushota’s point.
In Chile and Peru, when copper price is high, the well-organised mines there set up a SINKING FUND. On average, 25% of the selling price they receive, above budgeted figure, is set aside in the sinking fund….FOR TIMES LIKE THIS!
Ifintu ni Lungu. As if investors are mother Theresa. Clueless individual. Sorry but no, this one is a chipu.. Alibe nzelu uyu munthu chako…
Maybe Lungu will borrow more money to pay Luanshya mine workers salaries
Ba Zambia finshi mulefwaya natwishiba fwe bene eeeeh Lungu eeeh Lungu eeeh Lungu eo tulefwaya x2 via singing kansi ni malabishi yeka yeka useless President
In 2016 Zambians should vote intelligently and Vote SMART as in Specific Measurable Attainable Realistic and Time Bound.
Lungu is about to make history as one of the most useless President to rule Zambia….this guy is a joke..
Mr. Jameson Lungu, are you sure you were sober when you did this?
Did you also ORDER China to pay us double the amount they are paying us for copper now?
Maybe you also ORDERED God to put more water in the Zambezi?
And you ORDERED someone (WHO? Investors?) to create 500,000 new jobs in Zambia today?
Let us see what will happen tomorrow when you have sobered up!
HE lungu thats how a leader must be. those pipo if they want let them put themselves on care and maintainance leaving zambians operating those mines.
These UPND people want the mines to close so that their HH and his LUFUMO friend can go and campaign ” If you voted for me the mines wouldn’t have closed” formula.
@Kayula and Andrew. This is a serious matter. And you cadres take it as a Joke. You want to politicize the issue.
.
Nobody, you hear, nobody would wish the mines to close. Families’ lives are at stake here. What we need are tangible solutions not wishes. It is not what Lungu wishes for that will solve the problem. It is concrete and planned action that will sort out this mess. Not Lungu and Kambwili throwing tantrums.
We want leadership NOW. NOW.
@Kayula. How will the Zambians run the mines without electricity? Let Lungu solve that problem first, then he can throw a tantrum! By the way, who owns the same mine? Is it govt?
It is laughable! Is it Govt which funds the mine? These are the bitter, logical consequences of mismanaging a key sector (energy): ripple effects. So you think the businessmen investors are going to eat your story of “natural causes at lake kariba, bla bla”? Politicians! And Lungu + Kambwili think they can just issue orders to mines, and orders are followed?
If these CLOWNS think they can do this with a private company, just think of how they will run the IDC!
With the chief clown as Chairman of the Board!
Clueless IDI0TS!
Surely Zambia can do better than this???
“…As far as government is concerned Baluba Mine is still operational and workers are still working,…”
Firstly, reality on the ground is different Your Excellency.
Secondly, just look at the Honorable Ministers you are assembling to deal with the issue:incompetent Yaluma, convicted liar Shamenda and bigest head with smallest brain Kambwili? WOW!!! What “shock” commando team.
Ba UPND you amaze me the President is looking out for the miners and you are condemning him. Your hatred nows no boundaries, do you love this country or are you obsessed with the freemason? .
@ Mambwe
Can you clarify under which law does President has “powers” to act in this specific issue?
And who will pay compensation to the mining company? Chinese government or….
Slogans are always nice, reality tends to be expensive.
So is Kambwili Minister of Information and Broadcasting or is he the Chief Govt. Spokesperson?
I am confused!
You should not get confused. A minister of Information and Broadcasting is also Chief Govt Spokesperson. I hope that clarifies.
The hate for Lungu makes some individuals fail to see what Lungu is doing. The reasons the mine gave are mitigatable hence the intervention.
Ikalenifye ba chinena and worry about your insulting name.
In Western province we had a team of GRZ workers who were laid off after working for some months without pay,no one called this as null & void, but you want to inter-fear in the operation of the private sector. I have just laid off my maid because I can not afford it since my disposable income has been reduced to half due to escalating cost of leaving, let me hear any one say its null & void. In short work on the economic factors that are rising the cost of doing business, the cost of living, diversify the economic, reduce corruption and create policies that will promote increase of production. Believe me if this is done, we shall see more mines coming in Zambia, increase in production that will stimulate exports hence more forex in, this will make the kwacha appreciate and imports will…
Losing a job is a painful and horrific experience, and as such any attempt to save jobs must be commended. Every country has laws which are supposed to be followed, at the best or worst of times. President Lungu has done what is expected of him. Please for once, let us see the bigger picture.
@ Bee Esi
Please, can you clarify which law has President followed when issuing “directive”?
No they want a platform for their HH to campaign do not even waist your time answering back. All they are praying for is for the country to be ungovernable.
Is Lungu’s broke GRZ going to subsidize the chinese mine operations? This will be embarrasing. What if the Chinese relinquish the mining licence like Metorex relinquished Chibuluma West and left the mine workings to flood?
Hatred has blinded ba kachema. 2016 come soon the baby boy is going to cry again.
While one can agree that global factors are also at play like low commodity prices, PF s mismanagement and ignorance is the mani player In this tradegy.
PF over saw the wrong turbines being installed at kariba, either through incompetence or corruption
PF participated or watched on as zambians were being ripped of by paying for the most expensive roads in the world. I belive if PF declared those prices null and void, close to a billion dollars would have been saved.
PF just found out the other day that Zambia, with all its waters and arable land, imports fish and cut chips, pies infact almost everything.
With all this fuss over 1,200 jobs, you’d almost think the President isn’t so confident of PF creating 500,000 brand new jobs anytime soon. Why the worry, boss?
@Spuds you are right! The 1,200 miners can be the first recipient’s of the new 500,000 jobs the PF are creating. Let LCM close if they want to we are not worried since HE is creating new jobs as we speak!
Well done President Lungu. That is the role of the Chief Executive of the country. You make we the Zambians in the Diaspora so proud to have you as a leader. INVESTORS OUGHT TO REALISE THAT THEY ARE THE HOSTS IN OUR COUNTRY! Your action today underscores that fact.
Do you know what the word INVESTOR means…let me see you build a house back in Zambia and rent it out to a stranger then charge them rent at half the market price a month its laughable aint it? That’s how silly you sound…an investor is not stupid enough to leave his home abroad to come and merely create emplyment for docile Zambians.
This is the outcome if you do not understand economics. Honestly, how does the educated President be BULLIED by KAMBWILI who knows literally nothing about economics. I am very dissappointed with LUNGU having sunk so low. Facts are on the antangalala. There is no enough power to be used to extract copper owes, above all, CHINA is no longer buying copper, hence prices have gone down. Where does the mining cokmpany supposed to get the money to sustain people who are not working? To own a company is all about profitability and not to sustain the work force without any profit. For me whether the Kachema boy cry again, but zambia is being led by a batch of I….ts. I wonder to some people who think being a kachema is to be a poor or bad person or are they trying to insult by saying KACHEMA. It…
The BUFFOON Kambwili is solely worried about the 1200 voters who will not vote for him….he is the wrong person to send to negotiate with the mines as he can not come out of that room and say yes I got a fair outcome which balances the interests of business and taxpayers.
This is what happens when you elect an utterly lazy dull President who lamentably failed to run even a small law firm.
We can afford to have a country full of traders only no manufacturers and you want to be rich. You elect a lazy president who has never owned a proper business and expect him to understand how an economy is managed. Lets be serious fellow Zambians. That’s why KK called us stupid Zambians. Lets wake up from slumber. Zambia is a sleeping giant. We better climate, soils, Minerals, waters ,trees and above trained human resources. Lets vote for a leader who will solve this paradox of poor country in country of plenty. A leader who knows who to utilize all resources to our advantage as Zambains not foreigners only. That leader is HH.
If these empty tins were investing in agriculture instead of stealing money via RDA in form of overpriced road contracts we wouldn’t be stuck in this selfsame paradox
I am sorry your HH is not that leader who will take Zambia forward. I have asked supporters of HH to name which manufacturing company HH started from the ground. HH was advising Kafupi to close manufacturing companies like LENCO. Today Zambia has to import window frames and trailers which were being manufactured by LENCO. Dunlop in Ndola which had the best equipment for the manufacturING of tyres in the region was closed during Chiluba’s rule. Dunlop shifted their equipment to Zimbabwe from where they started manufacturing tyres
NO SIR HH IS NOT THAT LEADER WHO WILL TAKE ZAMBIA FORWARD
@SIDO MARK
Your comment makes me miss KK!
Uneducated though as he is riduculed, he created/encouraged many manufacturing/ productuctive industries: Dunlop, ROP, Kawambwa Tea, Chipata Bicycles, Mwinilunga Pineapples, Mongu Cashews, Lenco, Supaloaf, Lyons Brokebond, Colgate Palmolive, Chloride, Livingstone Motor Assembly & Blanket Company, Nationalised mines, Zambia Airways,etc.
Yes things under him got out of hand but circumstances were harsh on him : liberation struggles that led to UDI, Apartheid, IMF dosage etc.
This time trade with liberated countries is booming: Namibia & Mozambique supplying us Electricity, Zimbabwe with Dunlop tires & Lyons butter, SA with chain stores etc. The man had foresight. He just overstayed. Apologies to him!
What a dull bunch of leaders will have who never learn from the past…surely what are you going to negotiate with the mines? You seem to assume running a company is like running your Zambian gov’t where there is no transparency and accountability just reckless spending on a bloated govt and civil servant at the expense of poor taxpayers… also where solving problems via loans at high interest rates.
What are you going to say when they say that electricity is too high, tax is also high and copper price is too low for them to sustain the business like they always say are you going to give them more energy discounts, fuel subsidies, tax breaks at the expense of taxpayers for a mere 1200 jobs?
Miners have lost their jobs because of power failure (pf). Lets just chuck this pf out.
Hahahaha! hee hee heee!!!! hoo hoo hohoho!!! Talk about failure this is it! A classic case of what it means to be pathetic!
..wrong move bwana president….this saga should have been left to the Shamendas, the Yalumas..the Kambwilis…..what happens if the mines decision is irreversible…???
What happens if it is reversible? They taxpayer still loses out…this is why you don’t send politicians to the negotiating table when business issues are being tabled.
“…As far as government is concerned Baluba Mine is still operational and workers are still working,…”
“…As far as government is concerned Baluba Mine is owned and operated by the Government,…”
“…As far as government is concerned the value of the Kwacha has not fallen ,…”
“…As far as government is concerned Esther Lungu is using her won pocket money for charity work ,…”
“…As far as government is concerned Lungu is making the right decisions,…”
“…As far as government is concerned no Zambians are suffering,…”
“…As far as government is concerned all Zambians are equal,…”
“…As far as government is concerned Lungu will win elections in 2016,…”
“…As far as government is concerned the present Government is ya mu yayaya,…”
The list is endless
“…As far as government is concerned all…
This is truly unbelievable. What kind of IDI0T is this that we have in State House?
The facts are that the cost of zesco and the low price of copper means that the mine cannot earn enough money to pay for their costs. Which part of this simple arithmetic can these F00LS not understand? Is this PF government now going to give the mine money to pay their workers? If not, where will the mine get the money from? The Eurobond?
Nobody will risk investment in Zambia now. This CLOWN has killed any future investment. And his 500, 000 is a sick JOKE!
This President is so dull, its scary. His ideas are so banal.
Surely what did Zambians do to deserve such idiocy, such ubupupu, bu CNP (Chimbwi No Plan). I mean how??????
Of the things that could tumble out of his mouth, thats the best he can do…!!!!
Sampa Mulenga(not your real name obviously from your comment you are Tonga) if your were president(not that it is possible) what would you have done in this case? The mines cited power interruptions as the main reason for making people go on forced leave. With the extra power coming from Mozambique power interruptions can be used as an excuse.
ECL IS TELLING THE MINE OWNERS THAT THERE WILL BE NO POWER INTERRUPTIONS AT LEAST FOR THE MINES.
Its not the Power issue alone which is major here for these Luanshya Chinese Mines and others They seen to be MORE ON TOP OF things than US and want to play a Winner
There is a slump in Chinese and countries we export to and Metal Sectors particularly copper and steel are feeling the heat You can see it on the LME Indexes and see the spot prices implied in the forward rates at CMEX Fore instance steel from South Korea as imported by China has fallen from 353,000 Tonnes to 332,000 a 13 % figure as previously The fall is forecasted to continue also in the wake of Chinese using there purchased metals over the period of time to Offload exports of Steel in…
Offload exports of Steel in reverse gear and also in machinery in competition with countries it once imported from Understand also the funding in capital structure of these mines and how it impacts the global happenings and see the DECISION rule But then those in CHINA and KOREA have not been made to close down amidst So its time may be also GOV came up with ideas in some METAL MARKETING company to buy and sell when prices are correct to ensure continuity of production even in depressed times benefiting on Forwards and future markets as it were participating in trades like the Chinese led metal marketing company
On the other hand the Chinese have managed to converge…
On the other hand the Chinese have managed to converge their official exchange rate to sport .This might be a good step further to making the YAUN a reserve currency Now that will have interesting scenario on how your settle your trades in metals and it might help to release some pressure on FX impacting by directly trading RMB without the cross currencies in USD or EURO holding it in some measure especially the inclination
You will need to move also fast to regulate your FX markets from Time Stamping, automatic orders in stop losses, market making in FX by banks and other FX dealers which is very common on Cairo road to ensure some savings trickle to the economy and…
to ensure some savings trickle to the economy and masses to create that necessary savings for entrepreneurial
In additional to your power also you will need to pay particular attention on how your commodities in copper will be affected by the rates hike as soon mining companies wait to respond from that 17 September decision that will certainly impact Zambia and other emerging markets in capital flight with those not so friendly mining houses Its likely to even put a strain on the global projected 2.8% growth resulting even in depressed conditions for emerging countries like Zambia
There has to be some fall back in these times not always being losers
Hardcore incompetence by PF. this is a PF GRZ where all ministers and other officials are business men. The lot of them including embassy staff are acting as sales men and women of forigne companies selling their goods in Zambia.
Kambwilli is one of the worst, that is why he is crying, his companies are the main supplier to that baluba mine. Instead of of doing his part and engaging local manufactures, he runs to South Africa. Because the business men who are GRZ corruptly get most contracts, Lungu should direct them to engage local manufactures first before running to SA as a measure to spure on local manufacture.
Compared to ECL, HH is proving to be an *****. So far he promised free education but will not tell us the cost of providing that free education. Promised to bring back Anglo but does not say what will happen to the companies currently running the mines. May be HH will nationalize the mines and privatize them to Anglo. HH is the master of the game when it comes to privatizing. During the campaigns in Mwinilunga, HH told the people that once elected president he will create a pineapple canning plant in the district. The question is why should HH wait until he becomes president to do that.
Why should private citizens be doing work that GRZ is supposed to be doing?? Is it so that GRZ can concentrate on stealing more eurobond manee by over charging zambians for road works???
@@Mwine Munzi… its suprising that you are worrying about HH’s election promises. What about ECL’s election promises? can you please remind us what ECL said he would do for you once elected? ECL is tearing down your house and you are worrying that HH said he would put electricity in your house if you make him president and your mind is on why HH only wants to put power in your house when he is president???
You have no influence on mines trades settlements and treasuries including global aggregates Its time you made amends and take charge apart from just merely regulating to ensure you control especially given the week fiscus we have for long-term
You will need to think outside the box
We warned ba Chagwa in the first place to be careful with the people he was mingling with. We mentioned he keeps a distance from Mugable and RB. These guys have a bad international reputation because of corruption and dictatorship, this has caused a negative impact on EL. Partially our economy is affected due to this fact.
Looks like these Mines are a curse to Zambia. They need low tax rate to operate and the moment you raise taxes to benefit the locals, the cease to be profitable and owners start threatening with closing them down. Now that they have the country by the balls on tax, they seem to want to go further. They want Zambians to subsidize power to the mines so that shareholders keep getting their dividend cheque. Of what value are such assets to the country? There is power for mines on the market but they just want cheap subsidized power from ZESCO. Well if that is the case, then we might as well just nationalise the mines and put them under IDC. I would support such an idea. Mines have had 20 years to prove their usefulness to Zambians and sorry to say they have not
They have had 50 years in Zambia and when they were nationalized the country went bankrupt!
Fine, lets kill, cook and eat the goose that lays golden eggs. We will have a huge feast – for one day.
What after that? Do you have a PLAN?
At the same time they interfere like this (…and insist their own mismanagement has nothing to do with Zambia’s problems) they say attracting foreign investment in energy supply is part of the “master plan”.
How many own goals are these guys going to score?
WHEN PEOPLE, COMMUNITY, ORGANISATION OR A COUNTRY IS NOT ABLE TO MANAGE ITS OWN AFFAIRS AND LET IT TO OTHERS TO MAKE DECISIONS FOR THEM THATS WHAT IT TAKES FOR SOME SMALL MINDED ZAMBIANS WHO CONTINUE TO CRITICISE GOVERNMENT AND ITS STAKE ORDERS TO MANAGE THE AFFAIRS OF OUR COUNTRY WILL NEVER HAVE A CHANCE TO LEAD THIS COUNTRY BECAUSE THEIR MINDS ARE SMALL. ITS NOT ABOUT WHO ITS ABOUT PEOPLE YOU CARE FOR .STUPID *****S
I feel for the thousands losing their jobs and stuck between government promises and corporate reality. What use to be a strength of this country (copper mines) has become a weakness. As terrible as this time in Zambia is — it should be a wake up call to diversify the power grid and diversify economic production. Leadership understands diversity and must provide a clear path — please, Mr President Lungu — I pray for you — now, please lead us!
Fimo iffintu kuti waseka mwee, Kambwili to be sent to say such things wemuntu wemukalamba sure.
I feel the bloggers for PF is just one person who is enjoying corruption with ecl. No normal person can say that the depreciation of the kwacha has no bearing effect on the economy. Zambia being an import oriented nation has a lot to lose when its currency is negatively affected. there is no normal person who can be supporting this failed Govt with all things falling apart. Even Lusaka Times You are fools misleading the nation about your PF. Report positively or close your site.
If only there was electronic or absent ballot system of voting in Zambia. Online -Zambians/diasporian’ favourite politician would be president by now…. Or will as they keep keyboard campaign ing on here and a few named media platforms wish him president next year!!
If only you realised that Zambia is not in the west or some developed country in the global north were the media is vital and often a deciding factor in elections.
Africans/Zambians tend not to vote for some one based on policies but we always vote based on; public liking, often a perceived poor candidate, …. Region and most importantly on…
Sadly, the leading opposition at the moment in Zambia ticks only one box!
Ticket me down because the truth hates!!
The govt should have just negotiated for decent separation packages for affected employees and create small farm holdings where these employees would have been resettled. Money that is being used to create new lanes in urban areas would have been used to put up infrastructure in those settlements. If we adopt this approach, Zambia would be a food basket in Africa within 2-3 yrs.
The President of the republic of Zambia has the power to intervene where he sees its citizens are being victimised and that’s what we call government intervention i.e Keynes theory in economics. Those condemning the President are known cadres whose supreme leader will still lose next year to Eddie mudala
Dumbest comment ever, how are the the investors going to pay the miners if production is no where near par??? *****s like u need to wake up and smell the coffee, this guy has no clue about what he is doing
Yes government can intervene by nationalising /taking over operations and absorbing the losses. KK nationalised the mines, milling plants and even bakeries.Nationalisation, thats what serious Presidents do, not ordering an investor to to operate a business that is making losses. I don’t support nationalisation but that’s the legal route to follow not empty rhetoric
@ Nexus Argue with points not insults, for your own information Zambia will be developed by Zambians. No need to be bitter. ZCCM holdings is there for the point I raised in case of any eventuality…
In RSA, Zuma is negotiating with the mines on the way forward so that there’s a win-win situation. In Zambia our politicians, the chimbwis no plan that they are, wait for the mines to do something and then react. Why can’t ECL sit down with the mines and all stakeholders and find the way forward instead of sending the ignoramus fat neck to go and insult mine owners?
It’s a bitter pile to swallow but things have fallen apart……… Ordering investors around is not good for attracting new investment…..
Save us the headache nationalise the mine to became part of IDC.
Is Kacasuman normal? So this how Kacasu can incapacitate people’s thinking capacity? Can a person come all the way from overseas to create employment for nothing? If you want take over the mines and run them. They will end up like ZAMTEL. Ati humble man. little did we know that he is humbled by Kacasu.
Is Kacasuman normal? So this how Kacasu can incapacitate people’s thinking capacity? Can a person come all the way from overseas to create employment for nothing? If you want take over the mines and run them. They will end up like ZAMTEL. Ati humble man. little did we know that he is humbled by Kacasu
Am convinced that even us UP AND DOWN cant create water at Kariba unless we follow suggestion by the special advisor Muliokela.We are just desperate for power cos its too much of just admiring ECL.
the kachemas everything ni ECL even the death of mr Winstone Chibwe am sure they will blame ECL.
And who will foot the bill for the miners’ salaries?If the mining company says the operation is no longer profitable then it won’t afford to pay salaries.