Mines shouldn’t retrench workers, charges Katumbi
Mines shouldn’t retrench workers, charges KatumbiWritten by Mutuna Chanda in Ndola
Wednesday, January 07, 2009 3:46:16 PM
MINING companies in Zambia should not retrench workers because they made profits when copper prices were at their peak, Democratic Republic of Congo (DRC)'s Katanga governor Moses Katumbi has said. And Copperbelt minister Mwansa Mbulakulima has said there is a lot that Zambia can learn from DRC's mining experiences in view of the fall in world metal prices.
Speaking when he paid a courtesy call on Mbulakulima in Ndola yesterday on his way to Sakania through Zambia by road, Katumbi who spoke in French, said the DRC government had told mining companies not to retrench any workers.
He said his government had established a commission to look into whether or not mining companies made profits before they could be allowed to retrench workers.
“When [Copper] prices were US $8,000, whether it was in Zambia or in Congo, there was a lot of profit," Katumbi said. "When the price fell, they started firing workers. But these were companies that were making profit and they knew that prices would fall because to me the prices were artificial; the true prices are around US $3,000. We told them not to fire workers and we have established a commission that has to be told whether they made money or not."
Katumbi said the fall in copper prices on the world market exposed who the true and fake investors were.
"Some [investors] would like to remove their materials but we have refused them to do so," he said. "Those who are not professional have left. It was good for us to know the good investors and those who were not."
He also said there were no good reasons for mining investors to leave the DRC right away because the country had reduced its taxes from 22 per cent to one per cent.
"So they are not firing workers," Katumbi said.
And Katumbi said the ban on exports of raw copper from DRC was not intended to hurt Zambia but meant to protect his country's mining industry.
First Quantum Mining's Bwana Mkubwa operation used to process raw copper from DRC but the company has since closed due to the ban.
"I believe that Zambia has its own policy to protect mining companies and so does Congo," Katumbi said.
"Katanga exported 38,000 tonnes of copper cathode in 2006 because there was no transparency. People were stealing copper from Zambia saying it was from DRC without paying duty in Zambia and would export it. From 38,000 tonnes in 2006, we exported something like one million tonnes in 2008."
He said the ban on exports of raw materials was meant to ensure that the Congolese benefitted from the mining industry by exporting finished products.
"I stayed in Zambia for 10 years and here they only export finished products," Katumbi said.
He said to date, First Quantum Minerals was able to export copper concentrate to Mufulira and Kabwe.
"It has only slowed down because of the falling prices of copper on the international market," he said. "Bwana Mkubwa is welcome to import concentrate and not raw materials."
He also said when he became governor of Katanga 18 months ago, his decision to ban exports of raw copper materials had led to the construction of metallurgical plants totalling 25.
Katumbi said five of the 25 metallurgical plants had since been completed.
Meanwhile, Katumbi congratulated President Rupiah Banda over his election.
He also thanked the Zambian government for solely funding the construction of the Levy Mwanawasa bridge at Chembe.
Katumbi said it was shameful that he had to pass through Zambia on his way to Sakania because the road that passes through DRC to the area was impassable during the rainy season.
And Mbulakulima hailed Katumbi's decision to pay a courtesy call on him saying it was important for them to exchange ideas.
Mbulakulima said Zambia could learn a lot from how the Congolese were handling the challenge of the fall in world copper prices and the reaction of mine investors.
Owing to the decline in copper prices, several mining companies in Zambia have trimmed down their workforce while Luanshya Copper Mines (LCM) has been placed under care and maintenance, leading to combined job losses of over 3,000 in the mines to date.
Labels: JOBLOSSES, KATUMBI, MINING, MWANSA MBULAKULIMA
posted by MrK @ 3:47 PM
1 Comments:
"...He said his government had established a commission to look into whether or not mining companies made profits before they could be allowed to retrench workers..."
Damn that's really a weird and lame excuse to stop a company from making employees redudant. What has making profit got to do with retrenchment? Will they really listen? And if they don't listen, what crime will they be committing? Isn't this govt interference in the operations of a private company? I thought companies operate independently when it comes to who they employ or who they don't, profit or not!
Jigga
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