Mopani says it will go ahead and place its Nkaka and Mufulira mines on care and maintenance with effect from today.
In a statement released late Tuesday in reaction to Mines Minister Richard Musukwa objection to its plans, the mining giant stated that operating, regulatory and macro-economic environments remain very challenging and have continued to place significant pressure on the business.
The statement did not give an end date for the shutdown but Mr Musukwa said it would be for three months from April 7.
Mopani Public Relations Manger Nebert Mulenga assured that permanent Zambian employees, including those in management, would continue receiving their base salaries for the period the mine would be under care and maintenance.
“Mopani Copper Mines Plc held a number of meetings with Government Ministries on 6 April 2020 in which it provided an update of its comprehensive operational review. The operating, regulatory and macro-economic environments remain very challenging and have continued to place significant pressure on the business. In addition to the impacts of a rapid decline in the copper price, Mopani’s situation has been further impacted by the critical disruptions to international mobility, transportation and supply chains arising from COVID-19. Mopani has had to place a number of projects it was in the process of commissioning on hold until key personnel are able to travel to site,” Mr. Mulenga said.
“In the circumstances, and following consultation with its majority shareholder and funder, Mopani can no longer continue operating its mining operations and will transition those mining operations to care and maintenance (C&M) with effect from 8 April. Regarding the smelter and refinery, we currently have material on site which will continue to be processed until further notice. Mopani believes that the transition to C&M will help protect the company’s value and preserve the option to deliver our growth projects when market conditions improve.”
Mopani further stated that it would continue with its commitments and obligations to the workforce and host communities adding that it could continue engaging unions and government regarding the nature and duration of that support.
“…but we expect, permanent Zambian employees (excluding management) will be sent home on their base salary. Impacted unionised contractor employees will receive an ex gratia payment. This measure is over and above what is required by our contractual agreements. Employees and their dependents will continue to receive healthcare. Mopani will remain committed to its CSR projects,” stated Mr. Mulenga.
“The health and safety of the workforce and surrounding communities is our top priority. Mopani will engage with its employees, contractors and local communities regarding the impact of any operational change. Mopani remains committed to supporting its community projects, hospitals and schools during the period of C&M. Mopani will work with the local authorities and community leaders on how best it can continue to support its partners in light of the government decrees relating to minimizing the spread of COVID-19.”
MCM, which produced 119,000 tonnes of copper in 2018, is 73.1% owned by Glencore, 16.9% by First Quantum Minerals and 10% by ZCCM-IH.
Ooops!!! COVID 19 and now this!! My God, what have we done wrong to deserve this?
My fellow Americans, ask not what your country can do for you, ask what you can do for your country. John F. Kennedy .
This quote is misused, abused and usually used by lazy politicians in developing countries, yet the same America that came up with that quote, will be busy pumping billions in their industries to keep afloat amid the covid 19 challenges, in some countries its the other way round govts will keep squeezing milk from the dry udder .
…No , I should ask the opposition, but for that I will wait for the Sunday clown.
In times likes these, Zambian government could have fallen back on its reserves built by prudent fiscal manager over the years. Unfortunately , the reserves are dry, debt levels are high. Populism was at play by our leaders in the name of infrastructure development
Currently,there is no contingency fund to meet cost of covid 19 and bailing out strategic business like mines,energy and health. Political threats won’t help. You can’t compel a business to continue when the fundamentals are adverse.
We need strategic turnaround managers who can identify kpis for the business . No jokers like my mbuya bowman, Tayali, or walk ni wako…. No malice.
Headache after headache
Musukwa comes out like he is on top of things. Yestreday at his presser, Musukwa was full of hot air. Ama investors balimisulu bad. They wont just listen from you no matter how much you threaten them,
Exactly what I said, now who looks styopet between Mopani and Richard?
Dull diasporans musukwa didn’t want the closure due to wanting to ensure our workers were paid during this closure. As mopani has agreed to pay them, then no vundu. The workers are happy,we are happy. Nomba ninshi
For how long bro KZ can this be sustainable?
KZ, this is not the first time Mopani is doing it. Last time I checked Mopani was threatened with sanctions if they went ahead to put Central shaft under care and maintenance. Mopani went ahead and closed central shaft. Did Musukwa come back to us to tell us what sanction he meted on Mopani? Again, The entire humble leader promised us in Mufulira that Mopani was not going ahead with pruning excise it had embarked on. boom, no sooner had the powerful leader left Mufulira than Mopani pruned over 500 employees.
@chichi the whole show is to make their F.OOLish DULL supporter fell like they are working……
Mopani is not a charitable organisation or a church. By the way even a church is a business… its closes if you stop umutulo.
The joke is on your clueless leaders…. its going to be tuff.
1 US Dollar = 18,93 Zambian Kwacha
This PF government is the only one the world over that is expecting the private sector and private citizens to bail it out during this crisis period of Covid-19. From asking landlords to stop collecting rentals, ordering buses to load maximum of 60% capacity and private businesses to continue paying employees even when they have closed. The question we need to ask the PF government is “What are you bringing to the table during this period of hardship?” An this is the problem of not listening to advice, when people told them to go easy on the borrowing habit. Even when they continued borrowing, they were still advised to go multilateral lenders like World Bank, EU, IMF who have flexible terms instead of going to lending markets and Unilateral lenders. Now, market forces have driven us…
This is jst the tip of the iceberg, given Zambia survives on “Kaloba” as per Alexander Chikwanda…& All our Kaloba givers are worried with their own Covid-19 problems.They learnt frm Lungu as they gonna also now play “Wako ni Wako”.
Contd…driven us into Junk status and we are still falling. These Poor Failures can be likened to a parent that borrows for every little problem that he needs to sort out. He has borrowed from all his neighbours and his friends but does not pay back, if he does, it’s because he has borrowed from someone to pay another one. Now come a time when his child is seriously sick and requires special medical attention, the poor parent has no savings in the bank, he can’t go to his usual lenders because he is still owing and now wants his children to sacrifice even the little they have for him to sort out his problem. This parent can only be described as a failure. Full Stop!!
Watch “The Oxygen of Democracy | Dr Chishimba Kambwili | April 6 2020” on YouTube
Where is that foooolish mines minister Richard so he should cry someone…he thinks he is dealing with chaps at Black mountain…really laughable…the PF only want to use covid-19 when it suits them even ti the extent of contemplating tenants not to pay landlords forgetting landlords have to pay taxes themselves to the govt.
Tarino you have no clue what you talking about. Are you saying you would rather our people went without being paid just so you can please your mopani friends ? I don’t understand you . What are your motives? One day you speak up for people the next you sticking up for a multinational. Are you seriously normal? You are like a yoyo. Maks up your mind and spoke thinking in a tribal and partisan way or you risk coming across contradictory. You are not a very sharp guy for a person who claims to have done a thesis, are you?
That kama-silly boy at the ministry of mines is full of nothing but hot air. Amasushi yekayeka.
Seems like covid 19 will soon “hold all the cards” Tough decisions will be made for us by external forces. This is wat happens if successive govts keep shouting slogans about diversification without any action. Empower your own citizens and devt will be guaranteed. We have had 55 years but failed miserably.
Zambians, learn to elect leaders who understand business!
This decision by Mopane is a BUSINESS DECISION!
We should actually be thanking Glencore for the transparency about this three months lockdown! Care and Maintenance (C&M) is a normal process in the life of any Mine! It’s politicians who want to politicise business. It’s not a defiance act neither is it an arrogant stance! We should not kill Mopane the way PF has killed KCM!
Just brace for harder times ahead!
Unlike MMD under Chiluba, the PF government ws born with silver spoon in its mouth, inheriting overflowing reserves left by RB’s government. MMD under RB took us through the world financial crisis so smoothly that only economists in zambia knew what was hppening to the world economy. Enter PF and its so called “pro poor policies”, it was spending spree to contractors, to suppliers and to pockets. Barely seven later the economy was dry, debts unbearable, and warning signs flagged. Alas! PF leadership said there is no country in the world which does not borrow climate change blah blah and continued to borrow to the last drop of blood. Taxes on industry? Now unsustainable debt is with us, COVID9 joins the party, low copper prices, high taxes on Mines, problem after problem no end in…
…Now unsustainable debt is with us, low copper prices, high taxes on Mines, problem after problem no end in sight…and now COVID19 joins the party!!….you think PF is innocent? Sunday clown and Lubinda Hanzoka think so, you agree with them? You must be a fyul too!!
Mopani has shut its gates today….so is PF gonna liquidate them too? Not so successful with KCM so far…. from 2011 can we say that the poor are better off under PF? Bug NO from what we see on the streets, day and night. These are all lessons on how not to protect the poor…build business and commerce and industry, the poor will be protected automatically, all they want are jobs to feed and educate their children and their orphans…you saw and heard for yourselves from the street vendors on Prime TV last night.
Oh sorry Dora, I know you are not happy that Prime TV remains our prime source of uncensored local news.
I said it yesterday that whenever the govt speaks against the mines laying off workers nothing good comes out this govt always loses out. and KZ Mopani didnt say they will not pay off their workers yesterday all they said is they will lay off the workers and put the mine on care and maintenance, let us be factual before claiming credit that is not yours. now 11000 plus workers and those 270 for edgars have lost jobs what next for Zambia?
These mining things ine vimani pita.
I will just keep quiet.
Sometimes it is wise to accept that u have failed then you give way to someone else to leader the country you found Zambia better economically but u r leaving it worse than you found it what more would you want to do President Lungu must gracifully bow out he has failed to run this country and that is the truth.
“…but we expect, permanent Zambian employees (excluding management) will be sent home on their base salary. Impacted unionised contractor employees will receive an ex gratia payment”
Does anyone have the figures of how many are permanent? Considering also that this excludes management who assumedly will continue as ‘normal’ and contract employees will only get an ex gratia payment. Then we may know the extent of the number of people that will be affected. Not everyone is assured of full pay or employment after that period. Indeed, I thought someone was on top of things from the Press release yesterday.
Let Mopani seats with management to sort out this issue.
This is all because h² sold our mines. They thought privatization was the answer. Some fainthearts still think foriegn direct investment is an answer.
May God deliver you from your hearts of dependance. A mentality of laziness.
Rebrand ZCCM IH to Zambia Exractive Industry Corporation.
Let’s mine our ore and rig our oil.
Haven’t you done enough begging on a backmail leash????????????, Hugh!!!!!!!
Meanwhile Barrick Joins Fight Against Covid-19 in Côte d’Ivoire
Abidjan, Côte d’Ivoire – April 9, 2020 – Barrick Gold Corporation’s country manager for Côte d’Ivoire, Bodiel N’Diaye, today donated $1.3 million to Minister of Mines Jean Claude Kouassi to support Côte d’Ivoire in its campaign against the Covid-19 pandemic. The donation will be used for medical and social aid, including the provision of protective equipment and sanitary materials.
$850,000 of that amount will be allocated at a national level, $320,000 at a regional level and $135,000 will go to the district and communities around Barrick’s Tongon mine.
Barrick owns and operates the Tongon gold mine in Côte d’Ivoire and has a long history of partnering with the government and local communities, including in the field of…