THE power outage which engulfed the country yesterday resulted from a power system disturbance at Kabwe step-down substation which affected Kariba North Bank and Kafue Gorge Power stations, Zesco has said.

Zesco director of corporate affairs and business development, Bestty Phiri said in a statement yesterday that the disturbance caused the Kariba North Bank and Kafue Gorge Power Stations to trip as a standard protection measure. Mr Phiri said Zambia in the morning experienced a partial power outage except for Southern and Western provinces.

The power outage affected radio and television transmission for about 30 minutes but Zesco engineers took steps to restore power supply progressively in all the affected areas.

“Zesco therefore wishes to sincerely apologise for the inconvenience caused to our valued customers. We wish to thank our customers for their patience during the outage period,” he said. Mr Phiri said because of the outage, some of Zesco clients could have experienced meter tripping as a result of an inbuilt protective mechanism.

“We wish to advise all the affected pre-paid customers to report to our national call centre if they encounter any difficulties in resetting the meters, on Airtel and MTN on 322, Zamtel on 0211363636 or send and SMS to 3636,” he said. Meanwhile, Konkola Copper Mines Plc said the power outage which occurred around 06:30 hours in some parts of Zambia affected the company.

According to a Press statement released by the public relations department, the company’s emergency generation systems were brought into operation and additional emergency power was secured from the Democratic Republic of the Congo.

The statement said about 220 miners at Nchanga underground temporarily trapped in two cages were promptly evacuated to safety without any incident during the power outage. Normal power was fully restored around 10.30 hours and resumption of production commenced in phases.

[Times of Zambia]

The government of Zambia has given a waiver to China’s Jinchaun Group to take over Chibuluma copper mine without putting up a mandatory offer which would have seen the new owner buy off shares held by the Zambian Government and other minority shareholders.

Chibuluma mine is owned by South African-based and JSE-listed Metorex Limited, which is in the final stages of being taken over by the Jinchuan Group. In a statement jointly signed by the two parties, they said the Zambian Government had unconditionally and irrevocably consented to the completion of the scheme of the arrangement.

The statement said the Ministry of Finance and National Planning had also waived its rights to require Metorex to acquire its special share interest in the Metorex business over Chibuluma Mine, in which government holds a 15% stake through the ZCCM-IH.

“As a result of having obtained the mandatory offer waiver, Metorex is able to formally approach the Zambian Securities and Exchange Commission (SEC) to obtain an exemption from any obligation to make a mandatory offer to minority shareholders of Chibuluma in accordance with the SEC regulations,” the statement said.

Exemption from the SEC from making a mandatory offer and securing consent from the People’s Republic of China are the only two steps left before the deal is concluded. With regard to the Chinese government consent, last month Jinchuan Group reported that progress had been made towards getting approvals and consents from the relevant authorities.

“Application documentation has been formally accepted by the relevant authorities, and Jinchuan advises that it believes the process is progressing well, and anticipates receiving the relevant approvals and consents in due course,” Metorex said.
[Mining review.com]

Copper mining operations in Zambia’s Copperbelt have been halted Wednesday after a fault at a main power substation.

Zambia is struggling to restore power to some mines in the country, its energy minister said on Wednesday, after a power outage in Africa’s biggest copper producer hit the capital and the Copperbelt.

“It affected the mines, and we are still trying to restore power supply to some mines,” Cyprian Chitundu, managing director for state power company Zesco Ltd, told Reuters.Chitundu said the fault was at its Leopards Hill sub-station.

“When that problem occurred we lost Copperbelt and Lusaka. It was quite an impact, but we will be able to make an assessment once we start getting feedback from the mines.”[pullquote]Zesco sent smses at 09 00hrs that there would be no lights from 9- 16hrs but power had already gone at 0620hrs today[/pullquote]

Electricity supply in Zambia is expected to remain tight for the next four years, casting a shadow over the power-intensive mining sector in Zambia.

Mining companies with major operations on the Copperbelt include London-listed Vedanta Resources PLC (VED.LN), Glencore International AG (GLEN.LN),Canada’s First Quantum Minerals and Barrick Gold and China Nonferrous Metals Co.

A Chingola resident complained that there was no power from 10 00hrs to 16 00hrs on Tuesday and today power was gone as early as 0620hrs.
[Reuters/Dow jones]

HUMAN Rights Watch has insisted that its report documenting various labour abuses by Chinese-run mines operating in Zambia is accurate and it has since reiterated that the Chinese government and management of the four mines highlighted in the report should take appropriate measures based on the findings of the report.

Reacting to a statement from the Chinese Embassy disputing the findings of the 122-page report, author (of the report) titled ‘You’ll be fired if you refuse: Labour abuses in Zambia’s Chinese State-owned copper mines’, Mathew Wells said the findings of abusive health and safety standards, long hours, and anti-union activities came directly from interviews with 95 miners in the Chinese-run companies as well as union and Government officials.

“Rather than dismiss the abuses described by their Zambian employees, the Chinese-run companies and the Chinese embassy should ensure that their investment in Zambia meets its potential by listening to the workers’ complaints and following Zambia’s labour laws.

The massive strikes in October should likewise send a signal that the miners at the Chinese-run companies are tired of having their rights abused,” he said.

Recently, more than 2,000 workers from Non-Ferrous China Africa (NFCA), one of the firms mentioned in the report, downed their tools and were subsequently sacked but later re-instated following the Government’s intervention.

The workers were pushing for improved conditions of service.

According to the report, NFCA(a subsidiary of China Non-Ferrous Metals Mining Corporation CNMC), which is among other three Chinese mining companies cited in the report, Southern Weekend quoted the CNMC general manger Luo Tao in November last year saying as at that period, NFCA was China’s only overseas mine that was already producing regularly and at a profit.

It adds that Southern Weekend reported that NFCA had an annual profit of US$40 million and by 2008 had “recouped its 2003 investment.”

The other CNMC subsidiaries cited in the report are Sino Metals Leach Zambia (Sino Metals), Chambishi Copper Smelter (CCS) and China Luanshya Mine (CLM).

Mr Wells, who is Human Rights Watch Africa division researcher, added that the Chinese Embassy’s denial is also inconsistent with a letter received from China Non-Ferrous Metals Mining Corporation (CNMC), the parent company of the four copper mining operations in Zambia.

“CNMC said that it took our findings seriously and promised to conduct an in-depth investigation to ensure that abuses were stopped and that overall conditions were improved.

We hope that CNMC and the Chinese government fulfill that promise, so that the Zambia’s copper miners have their rights protected and receive the benefits of China’s impressive investment.”

A statement from the Chinese Embassy availed to the Times on November 4, 2011 dispelled the report regrettably describing its relevant contents as being not faithful to the truth as Chinese companies in question have always been closely following the local laws and regulations and have actively undertaken their social responsibilities.

The statement added that Chinese investors attached great importance to employees’ legal rights such as safety and salaries and have taken serious measures to ensure the protection of workers’ rights.

It stated further that Chinese companies in Zambia have for a long time been investing in Zambia on the basis of mutual benefits, creating a large amount of job opportunities, and making great contributions to Zambia’s social and economical development.

The report unveiled on November 3, 2011 details persistent abuses in the four mines mentioned, including poor health and safety conditions, regular 12 to 18-hour shifts involving arduous labour and anti-union activities, all in violation of local and international labour laws.

Human Rights Watch established in 1978 is a non-profit, independent, non-governmental human rights organisation renowned for its accurate fact-finding, impartial reporting, effective use of the media and targeted advocacy often in partnership with local human rights groups.
[Times of Zambia]

THE Kingsley Chanda Commission of Inquiry investigating corruption at the Zambia Revenue Authority (ZRA) yesterday heard that the authority single-sourced a Chinese firm called Nuctech to supply and install the Nakonde border scanners at a cost of more than K130 billion (US$25.6 million).

Appearing before the commission that sat for the first time at the Mulungushi International Conference Centre in Lusaka yesterday, Zambia Public Procurement Authority (ZPPA) director general Samuel Chibuye also said another firm, Bradwell Global Corporation was single-sourced to manage the system contrary to the law.

President Michael Sata formed the commission of inquiry to probe ZRA last month after he had stopped the institution from paying K4 billion to Bradwell Global Corporation that was engaged to manage the scanners at Nakonde border post in the Northern Province. Mr Chibuye said the former commissioner-general informed ZPPA in writing in 2008 that he had been directed by the Zambian Government to single-source on the basis that the scanners would be procured using a loan from China.

He said in the letter, ZRA said the instructions were that the Chinese government wanted Nuctech to supply the scanners, contrary to the requirements of the law that tender procedures must be followed even when a project was secured through a loan. Mr Chibuye told the commissioners that the Zambian Government then should have informed the Chinese government that the Zambian law requires that a firm engaged to supply and install goods worth that much should not be single-sourced.

Asked by Mr Chanda what he had done having realised the illegality as head of ZPPA, Mr Chibuye said his decision would have been shaped by the justification and it was clear that there were questions to be answered in the transaction. He said in his letter of April 15, 2009 the commissioner-general had sought a waiver of authority for the installation of four scanners but sought further authority for four other scanners and ZPPA does not know up-t-date how the other four were procured.

He, being new in his position, ZRA clearly knew that he would not understand that the earlier contract provided for four scanners and when they sought a letter, they stated that authority was being sought for eight scanners without explaining the contents of the old contract signed with Bradwell Global Corporation.

Mr Chibuye also said the board of directors for ZPPA stands technically dissolved following the change of Government because the provisions were that the board should be composed of ministers responsible for finance, works and supply, commerce, secretary to the Cabinet, attorney general, Bank of Zambia governor, a permanent secretary at the ministry of finance and two individuals from the private sector.

And in her submission ZPPA acting director of inspections and standards Gloria Ngoma said open tender system for huge amounts exceeding 30 billion could only be single in a state of emergency, when national security is affected and when the goods are of specialised nature.

She also disclosed that advance payments were not encouraged unless the contractor provides guarantees for the payment. Vanguard Investigations Limited managing director James Kasamanda submitted that all security covert private security firms had been stopped systematically from tracking operations at ZRA because of alleged increased corruption.

Captain Kasamanda said grand corruption takes place at the lower management level where individuals were paid to engage in illegality. He said at the time his firm worked with ZRA, it was discovered that firms that owed ZRA huge amounts of money were being erased from the computer after paying some officials about K15 million each.

President Sata last month dissolved the board of directors of ZRA and appointed the commission of inquiry to probe irregularities at ZRA. The members that sat included Sangayakula Sanga, Peggy Mulongoti, Martin Lukwesa, Agness Musunga and Fredrick Chishala. The sittings continue today.

[Times of Zambia]