Mine Workers Union of Zambia and the National Union of Mines and Allied Workers have Welcome Government’s 100% acquisition of Mopani Mine.
Mine Workers Union of Zambia president Joseph Chewe said the acquisition of 100 percent shares in Mopani by ZCCM – IH comes as a relief to the mineworkers. Mr. Chewe thanked President Edgar Lungu for taking into consideration the plight of the workers. He said it is the desire of the workers that Government carefully scrutinizes potential equity partners for the Mine as it is a pillar of the country.
And National Union of Mines and Allied Workers President James Chansa said the mineworkers will support the candidature of President Lungu as he has listened to their plea.
Yesterday Glencore Plc has agreed to sell its stake in Mopani Copper Mines Plc to the Zambian government for $1.5 billion, but will get just $1 upfront. Once the deal is complete, Mopani will owe its previous owners $1.5 billion that will be repaid from sales and profits going forward. Glencore, will retain offtake rights for Mopani’s copper production until the debt has been paid.
However, United Party for National Development (UPND) Mp and Former Finance Minister Situmbeko Musokotwane has told the UK’s Financial Times that the terms of the Mopani takeover meant that “history is repeating itself” with a mine nationalisation that was a bad deal for Zambians.
Dr Musokotwane said that Mopani would be devoting a share of revenue to pay off the Glencore debt.
“Whether Mopani makes profit or not, the first call on revenue is to pay Glencore. It is therefore easy to see that there will be times when core business activities in the mines will not be funded so that Glencore gets paid.”