Maravi

(DAILY MAIL) Mine jobs cuts irk State

Mine jobs cuts irk State
By YANDE KAPEYA

GOVERNMENT is disappointed with some mine owners on the Copperbelt who have continued to lay off workers despite the appreciation in the price of copper on the London metal exchange.

Minister of Mines and Minerals Development, Maxwell Mwale said the price of copper on the world market was gradually going up and currently trading at US$4, 300 per tone from US$ 2,800 in December last year.

“As Government we are closely monitoring the price of copper on the London metal exchange and indications so far show that it is re-bounding as the price is appreciating,” he said.

Mr Mwale said this in an interview in Lusaka on Thursday in response to the decision taken by Konkola Copper Mines (KCM) management on Wednesday to retrench 1,3000 employees.

He said Government was saddened that some mine owners were retrenching workers based on the global meltdown on principal commodities such as copper.

“Am aware that KCM has already offered letters of retrenchment to workers and this is unfortunate and as Government we are saddened because this means more people will go onto the streets,” he said.

Mr Mwale said Government was aware of the fact that mining companies had to cut operational costs to survive the global financial crisis but that laying off workers should be the last resolution.

He suggested that mine owners should consider streamlining the expatriate labour workforce to reduce on operational costs.

”Let me once again reiterate my appeal to mine owners not to use the global financial crisis as an excuse to retrench our workers. Government will not accept this kind of attitude as it is detrimental to development,” he said.

Mr Mwale said Government needed the support of all stakeholders because it was trying as much as possible to address the negative effects of the global financial crisis on the economy.

He noted that in the Democratic Republic of Congo (DRC) and South Africa over 3,000 and 6,400 workers respectively had lost their jobs due to the global recession

“ So you can see from these figures that the global financial crisis has not only affected Zambia but globally, all countries have been affected.

“And just to demonstrate our commitment to address the crisis, Government last week instituted a national indaba where stakeholders from various sectors convened to share ideas in finding solutions to the many challenges the country was facing,” he said.

Mr Mwale however said Government was happy with some mining companies that have rescinded their decision to put their operations under care and maintenance.
“We haven’t received any letters from mining companies indicating that they want to close meaning they are revaluating their positions,” he said.

KCM management announced on Wednesday that it will lay off 1,300 workers out of the 12,200 work force.

KCM further stated that this was in line with its efforts to streamline the operations to increase productivity and production.

Meanwhile, Mr Mwale says operations at the closed Luanshya Copper Mines on the Copperbelt are expected to resume in May this year.

He said government has been holding discussion with various prospective investors who have shown interest in taking over the operations of Luanshya mine.

Mr Mwale said in an interview in Lusaka yesterday that Government had received overwhelming response from both local and foreign companies interested in taking over the mine.

“As Government, we have not yet decided who will take over but a number of investors have expressed interest to take over and we are optimistic operations will resume next month,” he said.

Mr Mwale said miners and the people of Luanshya should remain patient as Government was doing everything possible to ensure operations at the mine resume.

“My appeal to the people of Luanshya is they should have confidence in Government and they should not give up hope as very soon, the mine will resume operations and their self esteem will be restored.

Luanshya Copper Mines management suspended operations late last year citing the global financial crisis as a major contributing factor.

The mine is currently under care and maintenance.

Labels: MAXWELL MWALE, MINISTRY OF MINES AND MINERALS DEVELOPMENT

posted by MrK @ 7:49 PM