Sunday, October 28, 2007

(TIMES) ‘Give ex-miners disused dumps’

‘Give ex-miners disused dumps’
By Times Reporter

PRESIDENT Mwanawasa has urged mining firms on the Copperbelt to consider passing on disused dumps and pits to former miners for small scale operations as a way of curbing illegal mining activities and contributing to poverty reduction.

President Mwanawasa said the Government was concerned to learn that last year, nine illegal miners died at Nchanga Mine alone as compared to 18 lives lost in the same year in official mine accidents throughout Zambia.

Dr Mwanawasa said this in a speech read for him by Vice- President, Rupiah Banda, during the ground-breaking ceremony at Muliashi Mine under Luanshya Copper Mines (LCM) in Luanshya yesterday.

Dr Mwanawasa said while the Government would continue to act forcefully against illegal miners, it was important that an avenue was created for legitimate mining at small scale.

President Mwanawasa appealed to LCM and other mining houses to do more to economically empower former miners.

He said mining firms on the Copperbelt should use the former miners association as a vehicle for supporting the Government in empowering its citizens economically.

He commended LCM for supporting former miners to develop an Iron ore mining and processing facility in Luanshya and donating K28 million to women members of the association to buy sewing and block-making machines.

Dr Mwanawasa said the opening of Muliashi Mine signified hope for the future of Luanshya.

Dr Mwanawasa said that when his administration came into office, the economic and social life of Luanshya was in ruins.
He said the first attempt to bring Luanshya back to its old glory failed because the Binani Group, which bought the mine, failed to recapitalise it, and Binani’s company, Roan Antelope Mining Corporation (RAMCOZ) went into receivership.

“The future appeared hopeless to the old and young. As a result people were skeptical when the second attempt to privatise the mines was launched with International Mineral Resources (IMR), Beny Steinmetz Group resources (BSGR) becoming the majority shareholder in 2004,” he said.

Dr Mwanawasa said contrary to the fears, the situation was improving. He said the $33.5 million purchase amount for the Muliashi project would go towards settling RAMCOZ debts.

President Mwanawasa said RAMCOZ not only failed to pay salaries and terminal benefits of former workers, it still owed large amounts to Copperbelt Energy Corporation (CEC), Atlas Copco, Barlows, Kafironda Limited, Total Zambia, Professional Insurance and Luanshya Municipal Council.

The President said in principle, the houses occupied by the miners belonged to all these creditors who are yet to be paid by the receiver.
Meanwhile, Dr Mwanawasa has disclosed that some companies intending to set up coal based power plants have shown interest in buying shares in Maamba Collieries in order to address the looming electricity power shortages in Zambia and in the region.

He said the Attorney General cleared the share transfer agreement, which effectively transfers all the shares in Maamba Collieries to ZCCM-IH, last month.

He said ZCCM-IH had been instructed to go for an open competitive bidding process to select a partner to work with.

Dr Mwanawasa said the competitive process would select the best business partner for ZCCM-IH in Maamba Collieries and give the company a new lease of life.

The President also announced that the revised Petroleum (Exploration and Production) Act would be ready before the end of December this year.

And speaking earlier, LCM board chairman, Jay Saraf, said the construction and development of Muliashi Open Pit and ancillary processing plant was good news to the workforce, as it would secure their future.

Mr Saraf said LCM employs 2500 people and the Muliashi project at construction level would create another 1000 jobs.

He said upon completion of the construction works and start of operation, the company would employ an additional 400 workers.

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