The Mineworkers Union of Zambia (MUZ) has called for calm among its general membership in view of the international statement by Mopani Copper Mines (MCM)’s parent company, Glencore, announcing its plans to suspend copper production in Zambia and Democratic Republic of Congo (DRC).

MUZ president Nkole Chishimba said the union was actively engaging management at MCM with the view to finding solutions to the challenges affecting the company.Mr Chishimba who is also Zambia Congress of Trade Unions (ZCTU) president said the international statement by Glencore should not make MCM employees lose hope.

He said in an interview in Kitwe yesterday that following the international statement by Glencore, the union held a series of meetings with MCM management aimed at consulting each other and finding solutions to the challenges.

“We received a hit that Glencore was going to make an international statement and that statement has come but what we don’t know is how they are going to move at local level.
“For us Glencore is a parent company with mining companies in various countries and all these have their peculiarities except what is the same is the copper prices,” he said.
Mr Chishimba said with the competent team at MCM, he expected objectivity and progressive ideas aimed at salvaging the mining firm to be floated.

This was not the first time that the country was encountering crisis in the mining sector as a similar situation during the global economic crunch occurred.
“We have trust in Mopani team’s ability to manage things because to its full of competent people and so we can only urge our members to keep calm,” he said.
Mr Chishimba, however, emphasized the need for the statement by Glencore to be managed with utmost care by MCM management so as not to allow it affect the morale of miners because ultimately, this could impact on production.
Uncertainty surrounding the future of employees at MCM had serious potential to affect productivity.
Meanwhile, Mr Chishimba expressed happiness with Government for having taken a progressive stance not to allow CNMC Luanshya Copper Mines to put Baluba Mine under care and maintenance and ultimately lay off over 1, 500 miners.

“This is how sensitive Government should be and we are supporting that move because procedure has not been followed,” he said.
Mr Chishimba said to his knowledge, procedure has not been adhered to as the unions were equally not informed about the move to place Baluba Mine under care and maintenance.

During the launch of the feasibility study for the KGRTC small hydro-power project that will be conducted over a one-year period by Gopa International Energy Consultants of Germany, KGRTC director Kaela Siame said the institute developed a five-year business plan in 2012.

He said the projects in the business plan include a five megawatt hydro-power plant, renewable energy technologies such as wind, solar and biomass, energy efficient infrastructure and new learning centre.

“We secured funding for feasibility studies from Swedish International Development Agency (SIDA) and we procured a consultant whom we are unveiling today [yesterday] so that they can start the studies at a total cost of US$3.8 million,” Mr Kaela said.

He said financing of phase two of the projects which will involve construction works and installation of equipment and all support facilities will cost K259 million (US$26.3 million) and has not been found.

Swedish Embassy Charge d’affaires David Wiking said energy is a key input in socio-economic development of any country and the current power shortage in Zambia has highlighted this fact.

“As a result of this power deficit, there has been disruption of services such as provision of water supply, disturbance of business operations and increased usage of charcoal so to overcome this challenge, we need concerted efforts from all stakeholders,” Mr Wiking said

And Minister of Mines, Energy and Water Development Christopher Yaluma said Government will continue supporting KGRTC to play its role in addressing challenges for practical skills development for the energy sector in the region.

“I am informed that 25 countries are sending their people here in pursuit of technical skills to support various operations and management issues in the energy sector,” he said.

A FIVE member Korean delegation is expected to arrive in Lusaka, Zambia to explore various opportunities especially in the construction sector.

First Secretary for Tourism at the Zambian Embassy in South Korea, Nthemba Kamanga Minja, said in a press statement that the delegation was expected in the country by yesterday on Tuesday.

“This is the first team of prospective investors to obtain visas and travel to Zambia from Korea since the Zambian Mission opened in late 2014.

The team is on a seven day fact finding trip to explore the various opportunities available in the Construction sector,” Ms Minja said.

The delegation members include Jeong Jin Young and Martin Joe, Consultants from GE Construction as well as Ahn Chun Woo, an Architect from Design Group HAM, JaeHyun Park, an IT Programmes Developer from East Busan Holdings and Ri Cheon Cha, a Surveyor from Yoolim Driling.

Speaking at a meeting held at the Zambian Embassy in Seoul, Korea, Zambia’s Ambassador to South Korea Mumba Kapumpa, said he was delighted that the team was heading to Zambia and highlighted the various sectors that Zambia has to offer in terms of investment.

Mr Kapumpa said Zambia was a peaceful and politically stable nation.

“In addition to its welcoming business environment and many tourist attractions, Zambia is at a strategic location in a dynamic region that could serve as a land-linked transit hub to its eight neighbours, Mr Kapumpa said.

He noted that much of the investments thus far in Zambia had been in the mining sector and there remained a number of vast untapped opportunities still awaiting development particularly in the Energy, Tourism, Construction and Agriculture sectors.

The ambassador noted that the coming of investors to Zambia was also an indication that the country had continued attracting investments and still remained a key investment and tourist destination of choice.

Mr Kapumpa also encouraged the delegation to take time to enjoy the various tourist attractions Zambia has to offer which includes the breath-taking Victoria Falls.

This comes a day after Government’s call not to send the miners on forced leave and place Baluba mine under care and maintenance.

Information and Broadcasting Services Minister Chishimba Kambwili warned at a press briefing on Monday that Government would not condone any threats by mining companies to lay off workers.

Mr. Kambwili said there was power being imported from Namibia for mining companies to buy at a premium rate.

“We are not going to condone any mining company that will cease operations and lay off workers on the basis of power shortage, there is an option of buying power at a premium rate which is being imported from Namibia for mining companies to operate at full capacity,” he said.

But LCM head of Public Relations Sydney Chileya said the Company had maintained to suspend the operations at the plant and that so far, 1, 200 miners had received letters to proceed on leave.

“Workers have started receiving their letters and I can confirm that about 1, 200 miners have so far received and are going on leave,” he said.

He said the affected employees would be paid a monthly allowance in order to lessen the economic burden until the next course of action was advised.

Mr. Chileya said it was management’s intention to conduct an orderly shutdown and cleanup of the operation with the controlled release of all personnel except for those who shall form part of the care and maintenance team.

He said the decision was arrived at after considering the escalating cost structure for Baluba Mine owing to the reduced copper price, coupled with the energy deficit the country was currently experiencing.

Mr. Chileya said the improvement, to acceptable and economically viable levels, of the fundamentals which had forced this action would prompt the re-opening of the Baluba Mine and its attendant departments and the recalling of all employees from leave.

In a separate interview, Mineworkers Union of Zambia (MUZ) president Nkole Chishimba said LCM did not consult the union before taking the drastic action.

Mr. Chishimba said it was saddening to note that mining firms had

continued to lay off workers without engaging in dialogue key stakeholders.

“Luanshya mine is a big mining firm , it should consult key stakeholders before taking such actions, as a union we are not involved, as it is now, we are only reading in the papers that workers are being laid off,” he said.

The Association of Mine Suppliers and Contractors has accused some mining companies of exaggerating the energy crisis being faced when making decisions affecting their future in Zambia.

This follows a decision by Chinese owned Mine in Luanshya on the Copperbelt to send 1,640 miners on forced leave and place Baluba mine on care and Maintenance due to the energy crisis.

Glencore the owners of Mopani Coppers mines one of Zambia’s largest employers have also announced intentions to suspend production for 18 months following a slump in copper prices.

And the Mine Suppliers have appealed to Government to immediately call for an indaba with the ministries of Finance, Mines , Commerce, Energy, Mining Companies , labour movement and mine contractors to address issues affecting the mining sector.

Association President Augustine Mubanga says it is unfortunate and a blow on Zambia’s Economy when Mines begin to close due to Electricity problems when government has put in place measures to address the situation.

He says Government is currently importing power to ensure that the mines are well fed to maximize on production to boost economic growth.

Mr. Mubanga appealed to ZESCO and the Copperbelt Energy Corporation to prioritize power supply to the mining companies if Zambia’s economy is to survive.

And Mines Minister Christopher Yaluma has appealed management at Baluba Mine to engage in dialogue with government as opposed to closing down and retrenching workers.

Mr. Yaluma says the issue of the mine laying off workers as a result of a drop in copper prices and power deficit is unfortunate.

He says Baluba Mine must realise that the drop in copper prices on the international market is a global issue which has weakened commodity prices in various economies across the global.

The Minister says the drop in copper prices is a global issue that Baluba mine should run with to see how they can cope and proceed with their business.

Mr. Yaluma also added that the power deficit is another issue that has come, stressing that Baluba Mine should NOT use it as an excuse to retrench workers.

He says the mine should see how it can manage its operations within the given constraints to maintain and sustain their operations.

Mr. Yaluma says he has already met representatives from Baluba mine and indicated to them that the power is highly constrained in the country.

He told ZNBC News in an interview that ZAMBIA will receive some premium power coming in adding that anyone that want to draw power will draw it on a premium price.

Mr. Yaluma said companies can utilise the premium power coming to compensate their current power deficit.

He said premium power to be supplied will however NOT be subsidized.