GOVERNMENT says Konkola Copper Mines (KCM) and the Non-Ferrous Copper Mine Limited (NFC) are frontrunners to buy the equity shareholding of Luanshya Copper Mines (LCM) by end of May 2009.
Minister of Mines and Minerals Development, Maxwell Mwale said in an interview yesterday that apart from the two, a Kitwe-based company in partnership with an international company was also bidding to take over running of the mine.
The minister’s announcement rests anxieties among miners in Luanshya who lost their jobs when the mine was placed under care and maintenance last year.
Mr Mwale said the new equity partner for LCM would be announced by the end of next month and that full operations of the mine were expected to start in June.
The minister said Government was studying the bids received so far and that it was in the process of finalising the list to determine who takes over the mine.
Mr Mwale said Government would increase its shareholding in LCM from the current 15 per cent to 35 per cent.
LCM was forced to put the mine under care and maintenance as it grappled with the impact of declining metal prices at the international market and the adverse global financial fallout.
The LCM put the mine under care and maintenance in November last year but finally pulled out and handed over the running of the mine to the government on April 6, 2009.
Government had already formed a technical committee that looked into the transformation of the ZCCM-HI into a vehicle that guaranteed continued mine operations at LCM to secure the interests of Zambian workers.
Mr Mwale said it was no longer justifiable for mine owners to continue retrenching workers because the prices of copper had continued to rise and that operations of mines were no longer in danger of financial fallouts.
The minister said copper prices were at U$4,400 per tonne as of yesterday, from U$2,800 in December 2008 when most mines opted to reduce labour force to ameliorate their operations.
Mr Mwale said the mine owners could no longer hide in the global economic recession or low copper prices because the situation had improved.
Mopani Copper Mines (MCM) last week informed the Mine Workers Union of Zambia (MUZ) that it would not close Mufulira Mine as earlier intended but would go ahead to retrench 1,500 workers in Kitwe and Mufulira.
MUZ general secretary Oswell Muyenyembe said the union and management held a meeting at which management informed them of the decision to retrench workers at the two mine sites.
The management informed the union that the retrenchments were part of the restructuring programme the company was undertaking.
MUZ has since appealed to its members to remain calm as management effects the retrenchments.
Mr Mwale said the mines should stop retrenching because they did not have the blessings of Government, especially that the copper prices had continued to rise since December last year.
“The mines should not use the copper prices as an excuse for retrenching workers, that is unjustifiable. They should not use the global recession to clean up their houses, that is unacceptable,” the minister said.
[Zambia Daily mail]