By Dr. Nevers Sekwila Mumba
Fellow Citizens,
The News coming out of the Copperbelt should make each and every Zambian to wake up and sober up.
Yesterday, Mopani Copper Mines (MCM) announced that they were proceeding with their plans to place the operations of the mining giant under “Care and Maintenance”.
In their statement, Mopani Copper Mines says it can “no longer continue its operations in a Covid-19-stalled environment as a result of the critical disruptions to international mobility, transportation and supply chains arising from COVID-19.”
At the same time, the Government of the Republic of Zambia, through the Mines Minister, Honourable Richard Musukwa, has issued an official statement rejecting this position and accusing the mining company of ‘fishing for reasons’ to shut down the mine against any legal provisions.
OUR CONCERNS
- As the MMD we have been in government before and we understand the implications that any disruption or threat to mine jobs can have on any Zambian government.
- We also appreciate the role that the Copperbelt and the the role which its underlying economic mood at any time plays in the political dispensation and we fully understand why the government would be quick to try and issue a warning to MCM in light of this.
- We equally take cognizance of the recent developments in the relations between government and the mines with specific mention here of the Vedanta Resources run Konkola Copper Mines which was forced into provisional liquidation, a dispute which has ended up in court and actively so, to this day.
- We also wish to recognise that before the onset of the COVID-19 pandemic, the mining industry has been, and remains a major source of Foreign Exchange in Zambia and its closure will have an immediate negative impact on our already deteriorating Exchange Rate which is just a few ngwees away from breaching the K20 to $1 psychological barrier.
- We also take full stock of the fact that our National Reserves, as held at the Bank of Zambia currently represent only about 1.4 months worth of IMPORT COVER. This means we have insufficient cushioning to sustain a stable exchange rate, as well as to cover for our critical imports including FUEL, OILS and GAS.
OUR POSITION AS MMD.
The picture that the above Five points paint is very gloomy and delicate.
We wish to advise and warn our colleagues in the Patriotic Government that they should not mishandle this matter or fall for the temptation to start playing politics.
Government must instead start to see this as an opportunity to change the negative image that they created in the international business community of being an intolerant government only out to re-nationalise the mines by force in the way they handled the KCM issue.
This time, we must choose to walk hand in hand with the Mopani management and find a way to keep all the 14,000 jobs despite the COVID-19.
To their credit, Mopani have also announced that 5,000 of their permanent Zambian employees, excluding management, will be sent home on their base salary. In addition, About 9,000 affected unionised contractor employees will receive an ex gratia payment. Employees and their dependents will continue to access health care and Mopani will remain committed to its corporate social responsibility projects.
To us in the MMD, this means that the mining company is willing to adopt a win win option where both company and employees survive as they try to deal with the obvious disruption the mining businesses all over the world are facing.
The greatest issues that require urgent government attention are not just the threat of COVID-19 itself, but the derivative problems that it presents as a result.
For example, we know that with China and South Africa still on lock down, most of the value chain including suppliers and manufacturers of spares, and mining consumables, the buyers themselves and the direct health threat on the Mopani Mine workers themselves are all real.
We urge this government not to fall for the temptation to start playing politics. This is a real issue and it can be resolved, but only on a round table.
CONCLUSION
This government must quickly rise above their crisis of fear. Fear that perhaps the Mines are only creating a false reason to cut jobs and blame it on a “FALSE MAJEURE” as one of the tabloids called it today.
The Mining Houses and the entire business community must also rise above their own fears that government is just out to get them and grab the mines by force. It is these fears that will hinder proper conflict resolution.
A win-win approach can bring about a solution that both keeps the jobs and helps the mines survive this turbulence.
A win win approach, anchored on dialogue, rather than fear, can help bring NEW HOPE to our people in the face of COVID-19 and its devastating effects.
Together we can, and Zambia Shall be Saved.
I would honestly love to see the PhD thesis for all politicians with “Doctorates”. I know my friend Dr. Brian Mushimba completed and defended his last year.
This may be inevitable in the face of the world crisis due to the Covid 19, but it also continues to bring to the fore how over dependance on foreign investors can dictate how we run our country and how ultimately we can become captured as a state.
All industries world wide are affected. Don’t just criticize for the sake of it. Opposition I this country are hopeless. Our main concern are the workers and through effective negotiation they will continue to be paid and receive benefits they are entitled to. What more can anyone want given the economic climate ? Kz
As usual, Nervers is just playing politics and seeking attention. He had chance to deal with Mopani when he served as VP and he knows how stubborn Mopani can be. If they could disrespect a VP how about a mere Minister. MCS used to tease late Stalin Chitalu Sampa about how Mopani treated him. Mopani is too quick to act whenever the business environment isn’t suitable. However, on this one it’s inevitable.My goods are also stuck in China because most airlines have suspended flights. Even DHL has failed to courier my goods. So if Mopani continues with production where are they going to store the copper? When Zambians are idle they’re very destructive. They steal in broad daylight. Dan Callow was shocked about that K2.0M cable that was stolen without a trace. So I can’t blame Mopani
This is what we call true checks and balances critising with offerin a solution, bear in mind the issue of industries collapsin its not only in zambia by globary.
The Mines were wholly Zambian owned and we saw the benefits that accrued to the country that included education, sport, social responsibility etc. The proceeds from copper was going to the BOZ directly unlike the situation now where we only collects crumbs and cessation of corporate responsibility leaving the once glorious mine townships looking like ghost towns. This came about by that reckless privatization where we sold the assets for a song.
The KCM saga has told us something, we can still run the mines on our own. Nationalize Mopani and any other mine misbehaving ASAP.
Lets Gold mining be in the hands of the State immediately. Finally lets have a Commission of Inquiry on Privatization to see the root cause of our misery today to avoid future occurence.
Mopani should not play monkey tricks. Commerce is still going on albeit at a slower rate. Flights are all over if you care to track them live. Have they put all their mines on C&M outside Zambia since COVID-19 is worldwide?
I don’t think the govt needs patronising, they are aware of the content of this University entry level essay.
There is a big hold in this fancy advice. WHAT EXACTLY IS THE WIN WIN SOLUTION?
I can’t understand Zambian opposition. They just put forward mediocre comments as solutions. We can’t walk around stating the obvious. Stuff happens, our affairs were not in order and we been caught with our pants down…..once again.
Glencore have mothballed their biggest cobalt producing mine in the DRC – Mutanda Mining with a capacity to produce 120k p.a tonnes of copper and 11k p.a tonnes of cobalt. This was taken as a business decision because of the falling price of the cobalt. The current decision should be taken just as such – to leverage the falling of commodity prices. No amount of round table meetings will sawy the Glencore board.
@Patriot Abroad, Couldn’t agree with you more! It is disheartening to see how clueless the alternative rulers are. It is obvious our country lacks a bold and prudent leadership but then Zambians are cautious and tend to adopt the philosophy of “better the devil you know’ and hence we are laden with mediocrity and forever losing recovery time …God help us.
How I wish Zambia was one of the provinces in South Africa.
Loadshedding to reduce dont forget
The tragedy of Zambia today is that you have people with zero management or leadership history wielding power in the corridors of state. Imagine Chakolwa Chagwa Agwa as president coming is with Kainyo Zulu as special advisor dealing with Mopani, it’s like expecting two baboons to fix a car mechanical problem, no ways!
COVID 19 will fix Lungu in 2021 elections, ba PF come 2021 kano lunyee bebele tuf.ikala imwe! Anyway, with all his incurable ailments swelling up his fact like a balloon, he might not even live to 2021, the PF might be left without a candidate! Only time will tell, bakoswe will scatter like rats from a sinking vessel.