Maravi

Govt to continue strengthening dialogue with mining companies

Govt to continue strengthening dialogue with mining companies
Written by Chiwoyu Sinyangwe
Wednesday, November 19, 2008 6:10:50 PM

NEWLY-appointed mines minister Maxwell Mwale has said the government will continue to strengthen dialogue with mining companies to ensure the sector remains viable amidst plummeting global prices of coppe

And Teal Exploration and Mining says it will continue with its copper exploration programmes in Zambia and the Democratic Republic of Congo (DRC) despite the current market conditions.

In an interview after meeting chief executive officers of mining companies in Lusaka on Monday, Mwale said the priority for now was for mining companies to find ways of cutting down on production costs and also maximise on the economies of scale.

Mwale also said the government was not considering revising the mining fiscal regime as being suggested by some mining stakeholders as a way to cushion the impact of the current global financial malaise on the country’s lifeblood.

“One of the areas we are looking at as government is for the mining companies to consider trimming down on expatriate workers as a way of cutting down on production. In our continued dialogue with the mines, what we are looking for is maintaining viability going forward,” Mwale said.

“We are encouraging them to look at low cost production areas. The current depressing copper prices is not a new phenomenon, we have been there before so it is about the mines looking at areas that would help them reduce the cost of production and also to maximise the economies of scale, say, where the mine was producing eight tonnes, move to 12 so that you swallow the costs of production. So, really this is about the mines coming up with survival plans.”

And Mwale said his first meeting with the mining companies as mines minister went on very well.

“It was about maintaining dialogue, working with the mines to ensure they remain profitable and viable despite the declining metal prices,” he said.

Mwale also said the government was not only going to concentrate on the already functioning mines but also look at enhancing the survival of the mining projects that were in exploration as well as pre-production stage.

And Teal Exploration and Mining also announced that it had started reviewing its employee numbers, while a number of other contracts have been reviewed and cost-cutting initiatives have been implemented. It has indicated that it would not suspend copper exploration programmes in Zambia and the DRC.

The company, however, stated that the turmoil in the global commodity market has forced the explorer, a subsidiary of diversified miner African Rainbow Minerals (Arm), to cut output at the Lupoto copper project’s small-scale mining operation in the DRC.

Labels: JOBS, MAXWELL MWALE, MINING, TEAL EXPLORATION AND MINING, WINDFALL TAX

posted by MrK @ 6:13 PM