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Saturday, October 31, 2020

Mopani, CEC agree power deal on President’s intervention

Headlines Mopani, CEC agree power deal on President’s intervention

Amos Chanda
Amos Chanda
Mopani Copper Mines (MCM) and the Copperbelt Energy Corporation (CEC) have reached an agreement that will lead to the resumption of power supply to the mine today.

This is in a statement issued by President Lungu’s Press Aide Amos Chanda, below is the statement.

According to the statement, MCM and CEC have reached an agreement that will lead to the resumption of power supply to the mine today.

The agreement which has been facilitated by Government is to be amicably concluded between MCM and CEC over an agreed period of six (6) weeks. During the same period, Mopani and Government will also conclude other outstanding matters on Value Added Tax (VAT) refunds and transfer pricing disputes.

The statement further said that the Minister of Finance Hon. Felix Mutati, the Minister of Energy Hon. David Mabumba and the Minister of Mines, Hon. Christopher Yaluma facilitated the Mopani-CEC talks that went on late into the night in Lusaka on 29th August 2017.

Mopani will today inform Labour Unions that negotiations are taking place in good faith and therefore there was no cause for panic. All other matters incidental to the power impasse will be addressed by Mopani management.

Glencore Limited directors, the owners of Mopani were represented by Mr. Telis Mistakidis who flew in from Geneva, whilst CEC was led by Chief Executive Officer Mr. Owen Silavwe.

“His Excellency Mr. Edgar Chagwa Lungu, President of the Republic of Zambia earlier in the day met Glencore Directors to discuss the situation at Mopani,” concluded the statement

60 COMMENTS

  1. Zambian was robbed of funds by who ever resigned that 40 year agreement in 2015….what was the hurry ?? Was mopani promised anything ?? Who signed in 2015 ??

    • Waala so nganiba Presido bachilandafe ati OK it’s fine Mopani don’t pay the hiked fee, nokusendamo ka ngweee

    • Way to go our dearest Lungu. These are things you need to be working on, not Mandatory testing and increasing the marriage age to 21. Keep it up

    • This shows President Lungu is the right presdeint for your country.

      It would be a scandal not having him in 2021+

      I have a PhD

      Thanks

      BB2014,2016

    • Fire fighting all round.
      The decision leading to the business impasse between the two companies to the point of this intervention was as a result of the unresearched directives by the intervenor to hike electricity retail prices in the first place. He must now dismiss his incompetent business advisers for making him a referee in a matter they raised a green flag when it should have been red.

    • “His Excellency Mr. Edgar Chagwa Lungu, President of the Republic of Zambia earlier in the day met Glencore Directors to discuss the situation at Mopani,”

      Really, if ECL was duly elected and the people surrounding him believed it they would not always include “POTROZ”. Sometimes they even include Commader in Chief of the Armed Forces title. Pathetic.

    • THE SALE AND PURCHASE AGREEMENTS OF YEAR 2000 FOR ZCCM BETWEEN GOVERNMENT AND NEW OWNERS WERE SHROUDED IN SECRECY UP TO NOW.
      WHY??
      LET OUR GOVERNMENT NOW KEEP US IN LOOP. WE ARE ALL AFFECTED.

    • CEC is a parasite, unnecessary middle-dealer . What value does CEC add to electricity? Zero. It should be scrapped so that the mines can buy electricity directly from Zesco. Full stop.

    • People are paying more than what these investors are paying and you call it a deal. You guys are a waste of space.

  2. What we want to hear is whether they have agreed to pay the new tariffs because that’s the primary issue at hand…All other explanations are secondary…What is the Government clear position of Mopani paying the new tariffs because I do not trust the Finance Minister Mr Mutati on such issues…

  3. In the interest of transparency, What conditions has Copperbelt Energy Corporation and Glencore’s Mopani Copper Mines agreed to?

  4. What has the President intervented…what transfer pricing disputes? How much is involved? Why was Mopani refusing?
    As usual the govt treating taxpayers like kids..gone behind our backs and cut deals…for next generation to sort out.

  5. Who ever signed this 40 year non dynamic contract that does not take electricity and other changing costs into account must be investigated…….

    Zambians are being duped……zambia has lost money on this deal……the 2015 signing stinks of corruption and someone must be held accountable..

  6. My take on this is mopani contributed to lungus campaign funds before 2015 and were clever enough to put a contract in front of PF to sign and this was promptly signed thus losing the country millions in the long run….

    • You are absolutely right…thats the reason Felix has gone there with ZRA gifts…Zambians are docile easily dubed in honesty what can a president intervene with as dull as he is? Mopani are not fooools.

  7. Everything has to involve the president?? This is not the best model of running the economic affairs of our country… Can we please have the full details .. On this one, we are closely monitoring everyone involved..

  8. We also want the President’s intervention over the farmers & FRA. We are still crying bwana Lungu, or do we have to cry louder by firing our farm workers?…

    • Mopani have an agreement signed years ago..the govt wont tell you that ..on top of that you go to milk them for campaign funds.
      Why would a foreign company refuse to electricity this is not rocket science.

  9. Mopani must be made to understand that they have taken the nation for granted. There are a lot of stuff that the government must look into this company. Right now it is twisting the government’s arm a thing it cannot be allowed to do in countries such as Nigeria, Zimbabwe or Botswana. It is unacceptable!

    • You are too dull to understand what is really going on here…yes the Great Lazy Lungu intervened just like that and all problems disappeared.
      Amen in Jesus name!!

  10. There are many investors that can take over Nkana and do better. It is my home city and I know the potential it has!

    • You think taking over a mine is like taking over a katemba….really laughable..no wonder you are duped by dull chaps like Lazy!!

    • Mulenga,

      What do you mean by war zone? I was in Kitwe only last weekend and didn’t see anything that looked like a war zone. I know that some of the roads haven’t yet been all worked on, but there are some significant developments I saw there: a lot of progress on the ECL Mall at Freedom Park with a large three storey four – star hotel complex being constructed at the same site; Builders Warehouse opposite Mukuba Mall under construction; Chingola-Kitwe Dual Carriageway; Mufuchani Bridge; new office blocks being constructed along Independence Avenue from the CBD up to Freedom Avenue; road reconstruction in Wusakili near the roundabout, etc., etc. What I saw was not a war zone but hopeful signs of economic revival in Kitwe.

  11. What is good about all this is that at least both parties are content with the outcome of the come together. Beyond that the Lord knows. Thank you to all involved in this indaba.

    • Beyond that is what you should and need know as a taxpayer…was the lord witness to when agreements were being signed…they are simply kicking the can down the road and telling you all is well.
      Wake up from your docility!!

  12. Tit for tat, you are withholding their VAT returns and yet you want them to pay new tariffs? Mutati is a clown who thinks he can dupe everybody. Imagine does it always have to take the President to intervene when these cases are in the courts of law? What precedence are we setting for other investors? They have asked Mutati to pay the VAT returns and they would in turn pay the new tariffs, its as simple as that. Now looking at the colossal amount of money owed in VAT returns, Mutati is at the cross roads knowing that the IMF deal has not gone through. The question is where is he going to get the millions of dollars to refund the mines? Why have they turned state house into a dang-on of arbitration?

    • Where in the article has Mopani agreed to pay new tariffs? I too would not pay a landlord if the tenancy agreement states your gas will all be inclusive.
      These tins have simply swept the dirt under the carpet…

  13. When are my brothers and sisters going back to work? Reactivate their access cards so that they can troop back to work. We need to produce. The price of copper is god I am told.

  14. THIS IS THE CORRUPTION WE TALK ABOUT!! WHY CANT THE PUBLIC BE INFORMED ABOUT THE DETAILS OF THE “AGREED POWER DEAL” ?? There is too much secrecy about Mine deals that we all left to conclude that there is alot of corruption involved!! WHY CANT OPPOSITION PARTIES and CIVIC ORGANIZATION TAKE GOVERNMENT TO TASK TO EXPLAIN THESE DEALS?? We know that TRANSFER PRICING is the way these Mines ESPECIALLY GLENCORE USES TO EVADE TAXES AS THEY ARE BOTH MINERS AND COMMODITY TRADERS. SO THEY SELL THEMSELVES COPPER AT RIDICULOUS LOW PRICES AND THEN SELL TO FINAL CONSUMERS (CHINA) AT HIGHER MARKET VALUE PRICES AND THEN RETURN TO THEIR BOOKS TO RECORD LOSSES OR LOW PROFITS TO EVADE PAYING APPROPRIATE TAXES!! Criminals they are!!

  15. I just love the business acumen of these Glencore guys. Thats how to run a business. All of you blaming Mopani, please direct your energy at your own people who represent you at these agreements. Mopani has done nothing wrong, your OWN people agreed to give them power at fixed rates up to 2040! Their claim for VAT returns, is also correct all documentation is right before ZRA. Whatever finger you wish to point at them, remember they did NOT do it on their own but YOUR OWN people are always aiding them or favouring them for reasons we can only speculate.
    And you say you can negotiate with them,what negotiations can you put up when your part is full of inconsistencies! The bigger f00.l is that CEC CEO who thought he could pull a fast one on these shrewd Glencore guys.

    • They never thought about growth..they thought Kariba will be supplying power with surplus left over forever.

  16. The statement from AMOS is simple loud and clear, MOPANI has outstanding Tax, and Transfer pricing fees, the same are written off or made to pay pan’gono pan’gono most likely CEC electricity tarriffs are upheld. But why the three ministers could not solve this problem until ECL TRADED this way? Why dance to mopani songs aiya we are in trouble. Also no need mention someone flew from GENEVA so what tiyope?

  17. Comment:
    The system must be wary of this company Glencoe. They don’t mean well going forward. Could be in cahoots with Icilema’s controllers to cause havoc in that very important industry.

  18. yaba..in kitwe the houses which ZCCM sold to miners are cracked,the roads in the streets are no longer maintained, no street lights either.What value addition have this mining firm brought to C.B. Now you can wounder what other mining firms are contemplating since they are already paying new tariffs to CEC. Without any intervention from Plot One.

    • When you sold the mines to them did you agree with them that they will cloth you from toe to underwear to your head.
      They came here to make a profit…tax them on that let them axe the jobs…use tax money for farming

  19. The post was shutdown on the pretext that it owed ZRA huge sums of money in tax arrears when infact it indicated commitment to settle the same,yet Mopani copper mines owes CEC millions of dollars with no indication to settle arreas nor to comply with the new cost reflective tariffs put in force by govt and tend to get away with it and treat mcm with kid gloves.Where is the fair play here?We know your card and posterity will judge you harshly.Bad managers in office.

  20. Somebody was bribed to sign that renewal contract in 2015.

    Money exchanged hands or is still exchanging to the detriment of the country.

    • That’s why its cheap to invest in Africa simply toss $5million dollars to shortsighted greedy fooools like Lazy Lungu and make billions for yourself in the longterm…I doubt Old man Sata would have signed that he is too smart for that!!

    • Then you have dimwits on here praising lungu when criminality was committed in form of corruption in the first place when someone signed in that contract in 2015….

      We should be asking why and how such a contract was signed and by whom

    • Swiss tax deal doesnt make sense…i highly doubt there is a company registered in Zurich that uses the same trading name as its subsidiary company in Zambia

  21. There’s always one thing I have forgotten to tell you bloggers here.
    Felix Mutati is Zambia’s Finance minister While his brother Emmanuel Mutati is Executive Chairman for Mopani Copper mines kaaaa!!!! I smell something fishy (uluche)

    • Electric Guy,

      The Executive Chairman is not Emmanuel Mutati but Moses Chilangwa. Mutati was replaced By Chilangwa about two years ago. So what fishy thing have you smelt?

  22. I was surprised to read on LT that awtzerland is the biggest buyer of zambian copper. Switzerland is not a large manufacturing country. So i think a swiss company buys then on sells at a higher price. The tax that will be paid is the negotiated rate of i think the new agreement is 15% when company tax here is 35% then switzerland has agreed to apply the same rate to zambian entities in switzerland…….. but this deal over six weeks also fits into IMF timeframes. IMF is tbey common denominator in all financial annoucements at the moment by the MMD/PF regime.

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