The Association of Mine Suppliers and Contractors has appealed to government to enact into law the Statutory Instrument (SI)on local content to give local suppliers leverage for bargaining business opportunities in the mines.
Speaking in an interview with ZANIS in Kitwe yesterday, Mines Suppliers and Contractors Chairperson Augustine Mubanga said government should sign the SI for the local suppliers to also benefit from the current high copper prices on the international market.
Mr Mubanga noted that at present, due to the non-existence of the SI in place when mines go through challenges the powers that be tend to over-look the plight of the local suppliers and contractors.
“We are hoping that within this first quarter of the year, the SI on local content must be signed by the Ministry of Mines as this will give us leverage to bargain for contracts in the mines and also protection as it will give us a framework and basis for us to engage both the mines and other stakeholders,” he stated.
And when contacted, Mines Permanent Secretary Barnaby Mulenga said his Ministry is awaiting the Ministry of Justice to finally complete the process of enacting the SI into law.
“We are waiting for the ministry of Justice to finish the process of preparing the SI, they haven’t finished the process, that is what we are waiting for,” Mr. Mulenga said.
Once enacted, the SI on local content will ensure that local suppliers and contractors are given a significant value of business contracts by the mines.
And Mr Mubanga further called on the Ministry of Commerce, Trade and Industry to take a keen interest in the value of procurement transactions that take place in the mining sector to ascertain where the value goes.
He noted that most of the business transactions are given to foreigners and in the end the real value of these transactions goes outside the country.
Meanwhile, the Association has projected a positive business year in 2021 as a result of the acquisition of Mopani mine by government.
Mr Mubanga urged government to resolve the issues regarding Mopani Copper Mine to ensure increased production for the mine so as to benefit from the high copper prices with the suppliers enjoying the spill over benefits.
He noted that 2020 was a challenging year as it mainly consisted of battles between government and Mopani as the latter was insisting on putting the mine on care and maintenance which he said disadvantaged the suppliers.
“Now that Glencoe has handed over the mine to government, we expect that ZCCM-IH will start running by ensuring that the mine becomes productive, increase its production and begins to meet its obligations,” Mr. Mubanga said.
He also urged government to settle the issues surrounding Konkola Copper Mines to ensure that the mine begins to operate at its optimum capacity.
Commerce is voluntary and should always be on ‘willing buyer-willing seller’ basis. If equivalent goods and services priced equivalently face discrimination, then a suitable law ought to be made to deal with that. If the seller chooses to buy from elsewhere because they want to save money, no law against that can be said to be just.
It does not make any sense for government to issue a statutory instrument to force mines to give big contracts to locals while the government itself does not give huge construction contracts to locals. Therefore no SI just for mines, it should be for government first.
Lassie Kakuta I couldn’t agree more, sounds like a thought from the street.
The problem is that we don’t have a strong manufacturing base. Even so called large local players such as Atlas Copco, Bell, Barloworld, Sandbox, Epiroc, etc are only local because they have a paper from PACRA otherwise all their products are from parent Companies abroad. So you can’t compete with them. Further, managers prefer to deal with foreign companies that send their cut directly into their dollar accounts. Chingola has 3 large transporters in Mining Haulage, Zalawi & JC Bousfield. Why hasn’t Richard Kazala’s MH been given contracts? Even Augustine Mubanga is illegally in office just like Fanwell Banda was. These are problems that we create for ourselves
We don’t need laws that impede competition. After all zambian contractors have a habit of dragging their feet after getting down payment
Meant Sandvic
As if they can manage to supply what the mines require.
Giving my posting the thumbs down or thumbs up is no debate. Let’s tangle if u hv something sensible to say. Tell me why u agree or disagree. That’s hw progress is made in the world.
Even when u dont have the capacity ati contract contract…si apa mwachita supply rotten drugs
BYE BYE THE MINES IF THIS COMES TO BE
LOOK AT THE CONTRACTS GIVEN TO LOCALS !! EITHER SHODDY WORKMANSHIP OR THEY RUN AWAY
HOWEVER THERE ARE A FEW PRINCIPLED AND ETHICAL COMPANIES OUT THERE DOING MARVELOUS WORK
BUT VERY MUCH IN THE MINORITY
Yes I am also fighting for a contract.
Plz lets put our our heads together
Let’s make one step at a time, it’s a good move….
That’s how it should be.. locals must benefit more from the reservour of mineral resources in our country
They just want their cadres to supply at inflated prices!!
Why you so upset bro
One of the biggest mistakes PF made was ignoring to bring the supply industry to the mines onto Zambian soil.
They should have spent atleast $2 billion re-establishing industries that support the mines. Those are multi use industries and could have ramped up exports on top of supplying the mines with everything…
Just imagine the jobs and forex saved if the supply industries for the mines were brought back to Zambia ???
Such strategic planning and thinking is the preserve of a great leadership ……usually a european type of selfless leadership, in some lucky cases african, like in kigames case,
not a lungu leadership that lives on slogans for today and thinks they have gods right to be president with out any questions.