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Saturday, July 11, 2020

President Lungu directs Mines and Energy Ministers to solve Mopani CEC impasse

Economy President Lungu directs Mines and Energy Ministers to solve Mopani CEC impasse

President Edgar Lungu
President Edgar Lungu with Amos Chanda
PRESIDENT Lungu has directed Minister of Mines Christopher Yaluma and Minister of Energy David Mabumba to quickly resolve the stand-off between Mopani Copper Mines and Copperbelt Energy Corporation over the adjustment of electricity tariffs.

The President’s special assistant for press and public relations, Amos Chanda, has also said that management at Mopani should engage in civil and decent business practices rather than actions that blackmail government.

“The Minister of Mines and the Minister of Energy will be engaging Mopani to deliver a clear message that the tariffs adjustment is just one of the components of the broad reforms in the energy sector that government has announced.

“The President in November last year gave clear intention about subsidies in the power sector, fuel sector and agriculture sector and cabinet has passed policies which government is following through,” Mr Chanda said at a press briefing yesterday.

He said if the reforms have been accepted by consumers at household level, government expects all sectors, be it business consumers, to accept the new tariffs.

Mr Chanda said, “the President has instructed the Minister of Mines to clearly engage Mopani and understand exactly what the mining company wants because the action they have taken recently is unacceptable.”

He said the President does not want to see that workers at Mopani Copper Mines are disadvantaged.

Mr Chanda said while the President is aware of the court case, he also does not understand why the dispute between Mopani and CEC should affect suppliers such as the termination of payments to contractors and suppliers, especially Zambians.

He said threats to retrench workers and failure to agree to normal business practices are unacceptable, hence the President’s directive to Mr Yaluma and Mr Mabumba to meet management at Mopani Copper Mines at the earliest possible time.

CEC and Mopani are locked in a dispute over the revised electricity tariffs, with MCM threatening to retrench nearly 5,000 miners after shutting down some of its areas of operation.

Last week, Government warned Mopani Copper Mines against going ahead with its plans to lay off 4,700 mineworkers.

Mr Yaluma has told journalists in Kasama that government will not allow Mopani to retrench any miner.

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  1. Is this a repetition of what happened in 2015 ? ,the president says no one will be fired but the company ends up retrenching 4300 direct workers despite the presidents assurance!!!

    • Just take back the mine. We did it in Zante, zanaco so we can do it on mopani. Ba mwenye hate blacks so much so even giving them a company for free is a further big insult to us.

    • If a common man in rural zambia can agree to pay the revised tariff, what more a mining company. These are the type of investors who are aimed at reaping and reping our wealth and country. Govt should just label them as traitors and believe me they will never take their investmen anywhere especially here in aussie where every investor is scrutinised based on previous records. Vendata was recently denied to take over the mining business because of the bad reputation in Zambia kcm.

    • And you claim to live in Australia? Did a common man sign a contract with to pay a certain tarriff? Thats why Africa has failed blacks just do not obey laws and regulations… you prefer to live like animals. Is that what happens in Australia?????

    • Mopani signed a contract with CEC… did you or any villager sign any contract with Zesco on a tarriff? You should be blaming you useless government. CEC buys power from Zesco and supplies to Mopani based on a valid tarriff contract. Why are you blaming Mopani for blackmail? let the courts decide. I would do the same shut my bar until zest supplies me power at agreed signed tarriff. You baboons need to respect laws and regulations.

    • Ubututu… you sign bad contracts and now cry blackmail …

      The facts of the matter is that CEC with some government officials have been involved in getting cheap electricity from Zesco using bribes which they on sale to the mines and they signed these bad contracts thinking it will be business as usual…. now the the world bank tells government to increase power tariffs and everyone has now been caught with pants down…. go on Mopani teach these blacks some lesson so we know who has is involved in the bribes… this goes back all the way to Lungu and PF, thats why you have cadres at Zesco

    • And by the way… Sunday Chanda why are you and your boss involved in a private matter between CEC and Mopani? You claim you don’t interfere in private issues at statehouse…. not that the rot points to Zesco and statehouse you are now panicking????

  2. The president doesnt know why the mines are not paying contractors.. Economics 101 Mr Lungu. if you are not generating income then ypu cannot payout. No cash flow, same as in a bar

    • Masalamuso:
      You surely must be a real id,iot that doesn’t even know the basics of economics! You fresher (first year university) economics with EC101 that gives you total confusion with huge misunderstanding is pretty dangerous!
      Think of if – if Mopani is not generating income, then why do they buy the inputs from the suppliers? They would only buy the inputs if they are trading – they have to pay! For christ’s sake Mopani is not a charity! Get your brains back in your thin skull you cunt!

    • Nothing to wonder about.Things have ground to a halt so how can payments be made to contractors who are unable to work and suppliers who are not providing any more goods since operations have ceased? There was someone who commented here last week that he works for a contractor and they were sent home coz they couldn’t work. And as this out of Mopani’s control, none of these companies have any recourse.

      The question is which individual came up with this idea to reduce power because it was a severe miscalculation, especially bearing in mind the events of a mere two years ago.

  3. @3 Masalamuso, never heard of a qualification called Economics 101, just a basic subject at university. Is that the economics that UPNDonkeys are applying in the real world?

  4. This is unacceptable blackmail, CEC is a private entity and let Mopani shut down if they cannot pay competitive energy prices. Alternatively the govt should just repossess the mine, Masame ba bakenwi ki mutanganyo!

  5. wrong use of the word ‘accepted’…..have the household consumers accepted the new tariffs or they just have no choice…?..Zambians are well known to be passive…just as it is the case on mandatory HIV test…..
    …if the students don’t demonstrate against something no one will….as a result the authority assume citizens have accepted…

  6. “He said the President does not want to see that workers at Mopani Copper Mines are disadvantaged.”

    PF administration, they give too many signals it hard to follow them.

    Formal and Informal Institutions it’s not only formal rules.

  7. Terrible you should know me better by now i am nor aligned to any political party, chilayata your comments are taken on board but did i say the are buying inputs now. The debts would be for past generation of income. But all thst aside gentkeman if you have a contract in place you should abide by the terms of the contract. That terribke is the rile of law in a democratic country

  8. Government must be serious abt this issue and that of kcm on OUTSOURCING.Sometimes u wuld wonder is ths govmnt really serious?They r jst being kickd frm right to left and cntre and they r jst there watching.If these *****s av faild to run the mines let them go and give the mines back to GRZ AND let ZCCMIH take charge.simple

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