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Alba Iulia
Friday, April 3, 2020

Unlike KCM, workers at Mwambashi Open Pit Mine end year year with smiles

Economy Unlike KCM, workers at Mwambashi Open Pit Mine end year ...

In contrast to the challenges faced by workers of the Indian owned mining firm KCM, workers at the smaller Mwambashi Open Pit Mine have ended their year with smiles as the mining firm awarded them with Christmas bonuses.

The mining firm which is under Sino-Metals Leach Zambia said it had decided to award it’s workers with food hampers as a way of appreciating their hard work.

The Chambishi based outfit further said its workers are the most important part of their operations hence it was important that they are kept motivated and happy.

The mine further says it has gone into negotiations with the unions representing the workers and the negotiations are going on smoothly and expected to have improved conditions once the resume work in March.

The open pit mine has gone on its annual shut down till March due to excessive rain and will resume work in March.

During the shut down the company pays it’s workers and has done so since it started its operations which begs a lot of questions as to why the mining giant of Chingola KCM continues to play hide and seek when it comes to paying their workers and contractors.

Last week Mines Minister Christopher Yaluma it took intervention for KCM to commit to the debt as some contractors protested.

The Copper Mine (KCM) has since not fulfilled Christopher Yaluma’s commitment to suppliers and contractors over payment date.

And Mr Yaluma has warned KCM that if it fails to pay suppliers on January 7, 2017, it risks having its mining license revoked.

After briefing with KCM management in the boardroom last Friday, KCM management assured Mr Yaluma and labour Minister Joyce Nonde that it will make payment to both suppliers and contractors on Tuesday this week which made Mr Yaluma to commit himself and assured the protesting suppliers and contractors that he was putting his heard on the chopping board.

But he received shock of his Government authority when KCM told him that it will pay on January 7, next year.

KCM had only managed to pay one month salary to labour based contractors leaving out suppliers.

In anger Mr Yaluma warned KCM that if it fails to pay suppliers on January 7, 2017, it risks having its mining license revoked.

The Minister said that he would love to see all the supplies paid but KCM had expressed some serious financial challenges hence the company was excused up to January 7th.

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  1. these indian companies are a pain in the neck, these guys like cheap labour same as Techmahindra running the Call Centre for airtel, they have been laying off employees in the name of not making enough money and they promised to say they will not employee for the last quarter of this year, to our surprise these guys have just employyed this month when they are sending others packing, all in the name of cheap labour bcoz the people they chased where getting about k2000 and now they have employed people they will be paying k950…..these are not investors but stealing from us in broad day light

  2. With $2.9 billion in debt covenants and inter-company loans due in 2016 Vedanta is turning to increasingly controversial and irregular methods to bleed cash from its few profitable subsidiaries. Having already asset stripped the Zambian Konkola Copper Mines, being prevented by an employees union from getting access to Hindustan Zinc Ltd’s $4.6 billion cash reserves, and by shareholder action from getting hold of Cairn India’s cash, Vedanta are now paying themselves ridiculous 1200% dividends in a desperate attempt to grab the cash and keep the lenders happy.

    Vedanta Ltd was India’s second most indebted company in June 2015 with $12 billion of debt. Parent company Vedanta Resources has a net debt of $8.6 billion (Jan 2016) and inter company loans of $1.8 billion. The Wall Street…

  3. The government really needs to wake up over KCM, the president needs to show his authority over the MINE unless he is compromised,if not he needs to put his Foot down, i remember him crying in public at Satas Funeral, he cried on the microphone and shed tears in public, we all thought he was the chosen one, but his dealings have been shady and less desirable , Chagwa needs to show some authority over these mines, he does not appear like some one who is feared, by the so called investors.i know LEvy mwanawasa started this mess. but Edgar needs to clean it up. he live up to his campaign promises, the same ZEAL he has shown on the post should be the same one they should show on KCM.


  5. The investors who started their own mines are doing better than those who bought existing mines. Can someone explain why?

    • Look at it this simple way…

      If you bought a brand new vehicle the operating costs would be lower than if you bought a used vehicle!

    • @Mayo Mpapa on the contrary the opposite applies with the mines. Examples opening a new mine requires $billions in studies, equipment etc while most of old mines like Nchanga and Mopani were bought at not more than $25m and these mines were already in production. For a new mine you have to wait for some years before you start production.

    • @Ndanje Khakis, are you asking a question whose answer you already know?!

      Green fields (new mines) are easier to manage than ‘used’ mines because you are just going step-by-step as laid out in the feasibility study and, as such, cost profiles are easier to manage. The other upside with new mines is that all such activities as feasibility studies, construction phase of the mine, etc are tax deductable and, depending on a country, substantial amount of tax holidays are granted by governments of host countries.

      But, for ‘used’ mines, you are in production from the get-go and are eligible to pay various types of taxes. Worst still, like a used vehicle, you don’t know the size of operational problems left by the previous owners, which could substantially eat into your profit margin…

    • @Mayo, One investor bought a mine that had over 200,000 drilled tonnes, over 200,000 active tonnes and a substantial amount of concentrates. He was given five years tax holiday and within a month he recovered the purchase money. Apart from a due diligence study all information is readily available while the new will need to purchase the drill information from the ZCCM HI in addition to his own extra drilling. The problem with the guy that bought an operating mine is that he doesn’t pay attention to maintenance all he’s interested is to maximize on profits and sooner or later machinery tear and catches him.

  6. Isn’t ZRA’s continued non-payment of VAT refunds making it hard for the likes of KCM to service their debt obligations with suppliers?


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