MOPANI’s ‘s unilateral decision declared 11,000 direct workers-ZYAFAC

The Zambia Youths in the Fight against Corruption (ZYAFAC) says it is illogical by some opposition political parties to try and disturbalise the country through their schemes to make the country ungovernable.

ZYAFAC Executive Director Maurice Malambo in a statement says his organization is surprised at the sudden turn of invents surrounding the impasse regards the
relationship between the Zambian Government and Mopani Mine arising from the unilateral decision by Mopani Mine administration to put the Kitwe and Mufulira mine divisions under ‘care and maintenance’ for three(3) months citing ‘ Force Majeure’ reasons in relation to the COVID 19 Pandemicand the plummeting copper prices on the International Market.

“This unilateral decision entails declaring 11,000 direct workers, another indirect workforce redundant and loss of revenue to the country in terms of the related taxes. First and foremost, the Mines and Minerals Development Act of 2015, provides the reasons and pre-requisite administrative guidelines for placing a mine under Care and Maintenance and even closure in relation to the reasons of ‘Force Majeure’. The term ‘Force Majeure’ is a French legal maxim under commercial law coined in reference to “an event of supreme strength; unforeseeable and unavoidable circumstances outside the control of a party to a contract that renders that party incapable of carrying out contractual duties,” he said.

“Therefore, ‘Force Majeure’ in the field of mining would in principle refer to natural disasters of the highest magnitude such as earth quacks and excessive flooding due to torrential rainfall, making the principle activity of mining impossible, it is also known as ‘vis major’ or‘the act of god’. As much as the COVID 19 Pandemic is a global economic disaster, nevertheless, it is NOT one beyond mitigation and whose economic ramification or diverse impact is of permanent nature or practically irreversible, because COVID 19 Pandemic can and is being fought with visible success in Zambia and world over, and its ramification is and can progress over time be mitigated by governments and international cooperating partners across the globe.”

He emphasized that the Zambian government under President Edgar Lungu through the Ministry of Finance has announced immediate mitigation measures to the economic impact of COVID 19 Pandemic and the plummeting copper prices on the International Market.

“Let me emphasize that in all sectors of the economy, the mining sector inclusive, normal operations have been sustained with strict adherence to practical Public Health Recommendations. Removed provisions of Statutory Instrument numbered 90 relating to the claim of Value Added Tax on imported spare parts, lubricants and stationary to leverage the cost of doing business on the part of the business community, the mining sector inclusive. Suspended import duties on the importation of concentrates to leverage importation cost in the
the mining sector,” he added.

“Other measures include suspended export duty on precious metals and crocodile skin; and. Lastly, the government has indicated its intention to issue a Statutory Instrument for the classification and provision of Loan Directives to encourage the Financial Market to provide relief to the private sector and the facilitation of long term lending to productive sectors of the economy, the mining sector inclusive. Suffice to mention that this measure is being implemented by the International Financial Market to which most mining conglomerates are indebted.”

Mr. Malambo stated that his organization does not find propriety in the unilateral decision by Mopani Mineadministration to place the two mine divisions under care and maintenance citing ‘Force Majeure’ in respect to COVID 19 Pandemic and the plummeting copper prices on the International Market as the plummeting of prices is a normal and temporal setback trend in any market in view of this global pandemic.

He further added that a worst-case scenario, addressing this temporal setback individual mining conglomerates can seek permission from the Ministries of Mines and Finance to engage in well-structured and time stock Pilling in mitigating the magnitude of actual loss arising from the cited reasons.

“In conclusion, as an organization, we strongly hold the view that a named opposition political party is working in league with some mining houses, players in the milling and petroleum sub-sectors, other criminal elements that had engaged in protracted gassing of citizens across the country and the subsequent incidences of Mob Justice, as well as its repeated call for a total country lockdown in respect to COVID 19 Pandemic, all tailored to carefully orchestrate economic sabotage in order to create a political environment potential to supplant the current government,” he said.

“In another related matter, it’s NOT malicious to think aloud that few hours after the leader of the United Party for National Development (UPND), Mr. Hakainde HICHILEMA on Friday, April 17th, 2020, accused the government of gross incompetency in running the economy and made an offer to intervene by dialogue in the impasse under discussion that the Mopani Mine administration decided to resume dialogue with the government which they had earlier on last week abandoned and went ahead to effect its unilateral decision without reaching some consensus with the government. In all fairness, the sudden change of heart by Mopani Mine administration and the offer to intervene in the impasse by Mr. Hakainde HICHILEMA, could this just be an innocent coincidence or something more pointing to a devious political cartel against the social-economic stability of our country,” he questioned.