Maravi

Mopani mine seals supply deal with Dutch company

Mopani mine seals supply deal with Dutch company
By Speedwell Mupuchi and Zumani Katasefa
Monday April 02, 2007 [04:00]

MOPANI Copper Mines' supply department has entered into an agreement with a Netherlands-based company Quadrem to handle procurements with its registered suppliers. And the Citizens Forum on the Copperbelt Province has said Mopani's proposed procurement strategy using Quadrem would encourage externalisation of money out of Zambia. According to a letter by company supply manager Tony Weber dated March 1, 2007 to Mopani managing director, registered suppliers would now be required to subscribe and pay subscription fees to Quadrem for supply of goods and services.

Weber stated that the new system would considerably enhance the way Mopani conducts tenders and transacts with its registered and approved suppliers. According to Weber, Quadrem is a global company providing a range of procurement (electronic procurement) services via the Internet and that it represents major international mining houses among them Glencore, BHP Billiton and Anglo American Corporation.

Weber stated that Quadrem's technology allowed for guaranteed delivery of tender and order documents. "In addition, they have been Web Trust Certified which is an independently audited endorsement that information traded via their marketplace is secure and confidential. It is worthy noting that Quadrem are currently finalising the establishment of a presence in Zambia," said Weber.

He explained that the Quadrem technology, an electronic post office, connects Mopani Supply department with its valued suppliers using a web-based application. Weber explained that requests for quotations would be issued electronically to suppliers who respond electronically and that orders would be delivered to them via the same system. He outlines some of the potential benefits of the system as increased revenue through accessing a greater number of quote opportunities, reduced cost of doing business with Mopani, reduced costs resulting from manual intervention.

According to Weber, the fees for joining the RFQs (Request For Quotations) system have been pegged at US$3,000 for six months and that suppliers would be billed after receiving five requests. Weber said on transactional system, suppliers whose annual trade with Mopani exceed US$500,000 would pay US$500 annually or US$300 every six months. A breakdown of the membership fees range from US$600 for micro suppliers to US$8,000 for very large suppliers.

Kantanshi member of parliament Yamfwa Mukanga expressed concern that the new system would only help create employment and wealth for foreigners. He also said many local suppliers would fail to do business with Mopani. Citizens Forum Copperbelt chairperson Mike Kabuli said Mopani should have engaged a local firm.

He feared capital projects would only be given to foreign companies and local companies would have nothing to benefit from. He said it was a way of trying to stop local suppliers from doing business with Mopani. Kabuli said many suppliers have complained to his organisation.

Labels: MINING, MINING CONTRACTS, MOPANI

posted by MrK @ 4:07 PM