Friday, January 23, 2009

Baluba mine floods

Baluba mine floods
Written by Zumani Katasefa and Mutuna Chanda
Friday, January 23, 2009 6:58:27 AM

SOME sections of the troubled Luanshya's Baluba underground mine have flooded.
Luanshya Copper Mine (LCM) manager concentrator Venus Kasito could neither confirm nor deny the development, but referred further queries to chief operations manager James Bethel. However, Bethel's phone went unanswered.

Company public relations officer Sydney Chileya referred queries to the chief executive officer Derrick Webbstock whose phone was switched off.

But reliable sources at the mine said the anti-pollution pump chamber at the concentrator flooded two days ago and that some engineers were busy trying to dewater the section.

"It flooded two days ago and the fear is that the flooding may damage equipment at the mine. Just today [Thursday] a team of workers who are in the care and maintenance team are pumping out water from that section," the source said.

The source said the situation is likely to affect the Luanshya stream, which flood and completely cut off people staying in North township, from the rest of the town.

"This part which has flooded was not planned for in the care and maintenance programme, that is what we were telling them, but they never understood," said the source.

He said the floods were also likely to damage other equipment on the mine such as the motors, adding that this would make it difficult for the next investor to take over the mine.

"We are just engaging government not to quickly conclude the discussions over the future of the mine, otherwise if they take long things would become worse. Government must make sure that people are given their jobs as soon as possible," the source said.

Mineworkers Union of Zambia (MUZ) president Rayford Mbulo said his team would go to Luanshya today to study the situation.

"We cannot say anything, but will be in Luanshya tomorrow [today] to study the situation. We cannot just issue the statement," Mbulo said.

Late last year, MUZ officials in Luanshya expressed fear that the mine may flood because some sections of the mine were not planned for in the care and maintenance programme.

Meanwhile, former LCM miners have started getting their terminal benefits.

MUZ officials talked to said it was likely that no miner got more than K35 million, saying that the least paid got as low as K2 million as terminal benefits.

LCM paid a total of K27.6 billion in terminal benefits to its former employees on Wednesday.

Sources at the mine disclosed that the money used to pay the miners was a refund from the government for the licence for the suspended Mulyashi project.

"The government had tried to find out from management how much was involved in paying the workers their benefits and initially management had cooked up figures but when government said the refund was going directly to the workers, that is when they gave the actual figures which came to something like K27.6 billion," the source said.

The source further said despite the miners being paid their terminal benefits, there were indications that they were willing to continue working in the event that the government found a new investor to take over LCM.

"We are a mining community, we miners are excited on getting our benefits. Some will buy cars and plasma TVs, but within two months that money will finish and they will be broke," the source said. "So many are willing even tomorrow to return to work and take up their jobs."

And Chileya confirmed that workers got their pay statements and had started receiving their benefits.

Chileya said by the end of business on Wednesday, all the workers got their pay statements.

"I can confirm that as of the 20th of January 2009, workers started receiving their pay statements for both their terminal benefits accrued and January pay," Chileya said. "By the end of business today 21st January, all workers will have received their pay statements."

Chileya declined to give any details on how much the total package was.

MUZ secretary general Oswell Munyenyembe urged Luanshya miners who obtained loans from various banks to negotiate with the respective banks on how the money could be recovered.

Munyenyembe said some banks started paying miners on Wednesday for both Chambishi Metals and Luanshya Copper Mine (LCM).

Munyenyembe said there was information that government had refunded the mining firm money which it paid as licence fee for the Mulyashi open pit mining project.

"Yes, I have heard about that, but I have not yet confirmed with government. But sources close to management are saying so," Munyenyembe said.

However, some miners said the company promised to pay them out of the sale of the last copper concentrates.

"They promised to pay us out of the sale of the last copper concentrates and they have done according to the programme," said the miner.

At a time a decision was reached to place LCM on care and maintenance, management undertook to pay terminal benefits to its employees by January 31.

President Rupiah Banda during a meeting with LCM management and other stakeholders ordered the mining firm to pay miners their terminal benefits before winding up.

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