Glencore says it will reverse its earlier decision to places Mopani Copper Mines on care and maintenance if it reaches an agreement with the Zambian government.
Glencore’s statement came after the Ministry of Mines said Glencore had “rescinded” its decision to put MCM on care and maintenance following a video conference between Glencore executives and Zambian ministers.
Glencore’s statement struck a different tone to the ministry – emphasising that a re-start of mining operations was conditional on an agreement being reached.
Zambia had earlier said it “applauded” Glencore’s “gesture of goodwill” in rescinding its decision and opting for dialogue.
Glencore said it had submitted a proposal to the government, giving no further details.
“IIf an agreement is reached Mopani will re-start mining operations and issue a notice of its intention to place the mining operations on care and maintenance after 90 days,” Glencore said.
It said it had submitted a proposal to the Zambian government that, if agreed, will see if restart copper production before notifying the government of its intention to mothball the assets.
“During the 90-day period, Mopani will continue to engage with the government on potential solutions to its current challenges,” the company added in a written statement.
The Ministry of Mines said MCM had “sought relief” from government on issues related to tax and, in particular, VAT.
The Ministry said MCM must deliver a “detailed plan” on how it intends to proceed in the 90-day period and “possibly” beyond, adding that MCM would defer some non-production activities and cut capital expenditure in order to unlock cashflow.
The Ministry also said MCM must restructure its cost profile in order to become profitable and start paying corporate income tax.
The Ministry said Charles Sakanya, chief engineer at MCM, has been appointed acting CEO after the government allowed CEO Nathan Bullock to leave the country.
Mr. Bullock had been briefly detained at Lusaka airport on April 15.
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.
It seems there is more to what we have been told before . We heard about the low copper prices and covid 19 as the main reasons. Now we are hearing about VAT and other matters. It is clear from this that MCM are still going ahead with care and maintenance if GRZ does not meet the conditions put before it. I can assure you , we have not seen nor heard the end of this saga. Watch the space
We were insulted when we said Govt had detained the wrong guy, we’re still being insulted on the other thread by those who can’t interpret the Mopani statement
Nationalize these mine and lets move ahead. Why only close zambian mines only?
*Why close Zambian mines only
Concerned, you are right in the spot. The truth is that purely on the goodwill of Glencore, PF has been cornered but won a respite for 90 days despite all the muscle being exhibited by PF government to the public and the unions. Unless of course as usual PF does not understand business language.
We need just to find another strategic partner than this Glencore chap, he’s now arm twisting GRZ…
The so called “pro poor” government nearly cost the jobs of thousands while pisturing in public, typical donchi kubeba PF.
Which ever way you toss the coin you are f.ucked
James Hadley Case 1977
So what did PF regime achieve in detaining former Moponi CEO Mr Bullock. More money to be paid on this false imprisonment due to over zealousness of PF cadres. Wrong advice by KZ to the president
BembaMan, and who will find you another strategic partner, the same PF? You must be a comedian.
NATIONALISE.
No surprise the condition they’ve imposed relates to lower Tax, VAT and their right to more profit.
Zesco (Energy Ministry), Bill 10 (Legal Ministry), Seer One (religious Ministry), Gassing ( Ministry of Home Affairs), Donate Blood or else (Health Ministry), FAZ (Ministry of Sports), Covid19, Prime TV (Ministry of Information), PF Branded masks amid Covid19, Mopani (Mine Ministry), Lusambo (barman Ministry) the story keeps going in successive fashion, but the pattern is all leading to 2021 and we haven’t seen nothing yet.
It could be that they were promised VAT refund which never happened. Remember that government owed mining companies lots of million dollars and which PF government never did. Your former Finance minister Felix Mutati can explain what transpired.
You must be very closed up up stairs to think Glencore has rescinded their decision, much as we all want Glencore to stay, they are a very independent company and will make descions to suit their business, you cant hold them to task to a level of detaining and stopping an innocent CEO from leaving the country minus even a court order, this level of backwardness is appalling . And no proper diversification program on the ground. If this thing is nationalized, it will be another scandal like ZESCO. Where is your tangible diversification program and in which year does agriculture take over mining as a major contributor to Zambia’s GDP.
Brace yourselves Miners 2015 taught us a big lesson and if you put all trust into the unknown… Hell is next!!!
White people are and have never been friends of Africa. They are and will only be acquaintances. They day God’s continent realizes this, is the day Africa will start really developing. Neither are the Chinese, other Asians or Indians Africa’s friends.
Now you can detain the acting CEO for good. He is a local chap.
Infestors always take us for a ride. We made a mistake selling our mines in the way we did.
Chaps will arm twist Government through and through until Government succumbs. Workers on the chopping board as the infestor glins unashamedly lifting a machete while looking at Government in the corner of his eyes in a blackmail stant. Meanwhile Government is confused with Covid-19 as MCM adds salt to injury.
At this point MCM, the villain, needed to be living up to it corporate social responsibility. Facilitating face masks and donating handsoaps and sanitizers. You don’t need such !d!@+ Investors believe me.
Provided we all believe that solutions lie with foreign entities, Zambia will only move sideways and not upwards..
Zambian brothers and sisters, let us do for ourselves that which we must do as opposed to waiting for some else to do it for us…
The “other day” a minister was calling for China town in Zambia, the other guy employed Chinese Police as opposed to fellow fellow Zambians.. With this level of self loathing, how can we move our beloved nation forward? It will take a Zambian to build a Zambia that he/she wants to leave in just like all them other people have done in their countries!