Calls are increasing on the need for the owners of Chambishi Metals on the Copperbelt – Eurasian Resources Group (ERG) to revamp the plant or surrender it to the Government.
ERG put Kalulushi District-based Chambishi Metals on care and maintenance in January 2020 when over 200 workers were sent home due to lack of feedstock to continue sustaining its operations.
Chambishi Metals is the country’s producer of cobalt and gypsum, a key ingredient in the manufacturing of cement.
Mine unions, contractors, the Church and residents of Chambishi have in the last two years continuously advocated for the re-opening of Chambishi Metals whose other operations include treatment of cobalt/copper sulphide/oxide concentrates, and cobalt carbonate/hydroxide materials.
Commenting on the dormancy of the plant, Chambishi based economist and politician Chikabala Kaleta said Chambishi Metals must be re-opened urgently.
Mr. Kaleta, the losing UPND candidate in the Kalulushi Constituency Parliamentary elections, said he also supports the proposal that ZCCM IH takes over the running of Chambishi Metals.
“These owners of Chambishi Metals, the ERG should take one thing into consideration that if they are really not willing to match up to the conditions given to them by the New Dawn Government they need to be out in the open and state their position. We want to know whether or not they can match up to the conditions so that our President can go ahead with the second step which is letting the plant run by ZCCM IH and make it public so that we can be generating money as a country as well. As things stand that plant is on care and maintenance so we are losing money. The Government is losing money through unpaid taxes; the government is losing money through other channels like Napsa contributions but on whose account? On ERG’s account, a foreign entity’s account which is something we are not going to allow in the new dawn Government,” Mr. Kaleta said.
Russian investors ERG Africa operate all of ERG’s assets on the African continent and have a workforce of around 3,500.
“We are here to repair the economy, we are here to make sure every Zambian has access to free education, health services and clean water but that is only going to come when the Government is making money. But how is the Government going to make money if ERG decides to close something that is not in their country of origin? That’s why in the few coming months, I am appealing to my brother, the Minister of Mines Paul Kabuswe to quicken talks with ERG so that we know their position as things stand in the next few months. If they are not willing to operate the plant let ZCCM take up the responsibility as stipulated by the President. When ZCCM takes up the running of Chambishi Metals I will be very glad that the company goes public and the company cannot close ever again,” Mr. Kaleta said.
He added:”We are sitting here as a country in a proper location where we have the Congolese who have been supplying this raw material to ERG and mind you Congo is the largest producer of the cobalt ore but they do not have a refinery plant so we should take advantage as Zambians. I am assuring all the miners, contactors and all employees who were retrenched that we the new dawn Government are coming in with or without the ERG. The ERG will respond to the Government in no time to state their final position.”
Mr. Kaleta expressed confidence that Chambishi Metals will be re-opened soon.
“When the final position has been stated we are going to see the way forward. If they will revamp it according to the conditions that have been given to them or if they will not revamp it, ZCCM IH will revamp it. Congolese are loading concentrate on their trucks, it is passing through Kasumbalesa, Chingola and it even passes Chambishi Metals refinery and it goes as far as South Africa and China to go and get refined but why should we be letting money pass on our fingertips that is why I am appealing to Honourable Kabuswe and also extending the appeal the President. I have full confidence in the President because he is a man of his words,” he said.
“To the people of Chambishi be rest assured that the Government is not sleeping over the issue of Chambishi Metals. The new dawn Government is working for you day and night. The closure of Chambishi Metals in Chambishi has brought very negative attributes to the community of which those Russians who own ERG don’t know about because they do not live here in Zambia,” he concluded.
First of all Laws that govern our national assets are weak and lack clarity. The second is that as Zambians we lack vital information to make informed decisions. What I know about Chambishi Metals is that it never used to produce any ore but processed ore from the DRC. The business went down when the DRC stopped to supply the ore because then Katanga Governor changed the Law not to allow the export of ore just like happened here under MCS. So when these people demand for the reopening or surrender of the plant, what do they mean? Don’t force ZCCM-IH to buy dead assets because of politics and blind demands. I advise Kabuswe to tread carefully
Mr Kaleta being a Chambishi resident is very close to the problems facing this plant. The plant was constructed in the Unip era to treat cobalt concentrate from all mines owned by GRZ. Presently the Chinese owned mines are using the Chinese owned Chambishi Copper Smelter to do this job. The plant started to get feed from Katanga DRC and from what I know the government there banned export of raw material. Mopani uses it’s own in Mufulira, NFC and Chibuluma and other Chinese mines use CCS. So I don’t know where the feed for Chambishi metals will come from. Maybe instead of negotiating for maize exports to the DRC , we should have gone to negotiate for Chambishi metals. Its closure has caused untold misery for Chambishi township.
Where will the concentrate come from since DRC has banned export of raw material and other mines are supplying to there own CCS or Mufulira Mopani?
#2 Ayatollah. True. What you have said is what I have also said but it is being MODERATED. This is a result of promising too much without research. Unless this company starts its own mine, it should just be stripped for parts.
When you say “dead assets ” what do you mean? cause this company as far as i know it is not the dead one.
Before the company started buying concentrate from Congo how was it being operated because chambishi metals is not a new company it was constructed years back
#5 Maleka…. the mines were under one ownership and it was mandatory for all mines to send their cobalt concentrate to Chambishi Metals. Today mines are under different owners who have their own arrangements.
#5 Maleka that time mines were under GRZ. Privatization!
If GRZ has enough money then they can buy it back which it doesn’t have. So in the meantime it remains with the owners to do as they please.
@5 Maleka, this is what we call uninformed arguments. We have told you that Chambishi Metals used to process ore from other mines especially the DRC but you don’t agree with us. You have also failed to provide alternative info, you instead wonder how it used to run. Chambish Metals is closed but there are many activities going on within the same premises, do you wonder why? ZCCM Chambish Mine was unbundled and sold in units. There are other companies working there, some even share the entrance but are separate units. There’s no one that can close a viable business and that’s what you need to understand
#8 Ayatolla. I have also failed to understand the logic by this person. Chambishi Cobalt Plant was established under KK government to handle the huge amounts of cobalt generated by RCM and NCCM at the time the metal had reached skyhigh prices. Bonuses were paid to all involved in the construction of the plant and it was completed before schedule. Today each mine has got their preferred smelters etc. Our neighbors have also banned export of raw material. So where does this person feed will come from? Or maybe they can gather building sand for feed?
DRC have got piles and piles of concentrate and those interested have set up plants within the country to treat this concentrate in line with government policy.
The question we first need to ask ourselves is: do we have cobalt concentrates in Zambia today? The answer is NO. That’s the reason Chambeshi Metals started importing concentrates from Congo. Now that DRC has banned export of raw ore, the company has no material to feed the plant. The government can grab the plant but it will not produce any cobalt.