Maravi

ZCCM-IH needs restructuring to run LCM, observes expert

ZCCM-IH needs restructuring to run LCM, observes expert
Written by Chiwoyu Sinyangwe
Tuesday, February 03, 2009 9:27:18 AM

ZCCM-IH needs administrative improvements for it to successfully run Luanshya Copper Mines (LCM), a market expert has observed.

Last week, mines minister Maxwell Mwale disclosed that ZCCM-IH would take over operations of the flagging mine which currently is under care and maintenance and resume full production.

Commenting on the development, a market expert who declined to be named explained that currently, ZCCM-IH seemed to be inadequately structured to run the mine.

The expert, however, supported the decision to allow ZCCM-IH to take over the mine, saying the government had no option but to see the mine remaining afloat while protecting people’s jobs.

“Obviously ZCCM-IH is not for long-term investments by primarily to retain government equity in the privatized mining companies. If you have looked at ZCCM-IH, in the last few years, it has been involved more in administrative issues like, environmental and post mining activities but this is not to say they have no capacity to run the mine,” the expert said.

“But currently it will be difficult for them (ZCCM-IH) to run efficiently and effectively and at the same time make independent decision because right now they have no chief executive officer, there is only a person acting there. So what that means is that they will literally be at the whims of the Ministry of Mines which is not right because those people are very professional and well prepared for things like what is happening in Luanshya today.”

And when asked to comment on fears that ZCCM–IH did not have the capacity going by its recent decisions to seek an equity partner in Maamba Collieries Limited where it holds 100 per cent shareholding, the expert said:

“This is what I mean that the government should make it clear under what terms ZCCM-IH will takeover the mine. I am sure the government has made it clear that the take over of Luanshya mine is only temporal, also the amount needed to resuscitate the mine which currently we are not sure in which state it is. But like I have said, ZCCM-IH management needs that independence if they are to run the mine effectively.”

Efforts to get a comment from ZCCM-IH acting chief executive officer William Musama proved futile by press time while mines minister Maxwell Mwale was not answering his mobile phone.

Labels: LCM, MAXWELL MWALE, ZCCM-IH

posted by MrK @ 9:27 AM