
Mopani Copper Mines (MCM) has announced that the mining firm would continue with its mining operations in the country.
Company Secretary, Kyansenga Chitoshi, said that MCM and its Board of Directors had reached an agreement with its shareholders to continue mining operations at both mining assets at Nkana Under Ground and Open Pit Mine as well as Mufulira Mine whose shafts would not be placed on care and maintenance as earlier suggested.
Mr Chitoshi said the mining company had carried out a detailed review of its mining processing and administrative operations and was expected to achieve a significant cost reduction through the implementation of a range of cost containment programmes.
He added that a slight increase in copper prices has also enabled the company to make decisions to continue with its mining operations at both Nkana and Mufulira rather than place the shafts on care and maintenance.
Mr Chitoshi further said the aging ore bodies currently being mined were now nearing the end of their productive lives, hence the decision by the Board of Directors to re-evaluate the potential of the synclinorium ore body, an as yet untapped resource of 100 million tonnes of copper bearing ore,located below the existing Nkana South Ore Body and Central Shaft Ore Body.
He observed that the Board of Directors was hopeful that the measures which have been put in place would significantly contribute to the profitability and sustainability of the operations, prolong the life span of the mines and secure a brighter future for the work force.
MCM has in the recent past retrenched more than 1000 employees in their quest to remain afloat following the fall in copper prices as the effects of the global economic crisis continue biting.
And government has commended Mopani Copper Mines (MCM) over its decision to continue with mining operations in the country at a time when copper prices were low and the global economic crisis biting.
Labour and Social Security Deputy Minister, Simon Kachimba, said MCM must be commended for deciding to continue with operations at Nkana and Mufulira Under ground and open pit mines when most of the investors in the sector were closing down.
Mr Kachimba, who was speaking when he met Mopani management at the MCM Nkana board room today, said the mining company will not place its facilities on care and maintenance as earlier suggested but would continue to downsize on labour and devise new production mechanisms to ensure that the mining company remained afloat and continued operating on profitable levels.
He said the company has also reduced its expatriate labour force from 125 to 50 by the end of this month to ensure that the company continued to operate on profitable levels.
He disclosed that the company has also decided to implement all developmental programmes that were shelved following a reduction on copper prices to ensure that the company became economically viable again.
Mr Kachimba, who was on a three day tour of mining companies on the Copperbelt, further disclosed that MCM which had a workforce of about 20,000 people has reduced to 7,264 Zambians while 50 were expatriates.
He said Government was interested and ready to partner with investors that were willing to create and save jobs for the Zambian people.
He added that Mopani’s decision to continue with operations was a clear indication of the company’s appreciating of Government’s policies which had seen a reduction in taxes to enable the mining companies revise their production costs and, in turn, remain afloat
Mr Kachimba observed that MCM was the largest employer of miners on the Copperbelt, hence they must be commended for taking such a bold decision.
ZANIS/ENDS/LK/EB