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China’s NFCA will take over 85% shareholding of LCM – Rupiah

China’s NFCA will take over 85% shareholding of LCM – Rupiah
Written by Mutuna Chanda and Zumani Katasefa in Luanshya
Saturday, May 09, 2009 4:17:25 PM

PRESIDENT Rupiah Banda has announced that China's Non-Ferrous Metals Corporation Africa (NFCA) will take over 85 per cent shareholding in Luanshya Copper Mines (LCM).

And President Banda has attacked Roan Patriotic Front (PF) member of parliament Chishimba Kambwili, describing him as a scrap metal dealer.

But Kambwili has charged that President Banda's corruption will follow him to his grave for selling Luanshya mine through a corrupt method.

Addressing a public rally at Kafubu Stadium in Luanshya yesterday, President Banda said the mine would resume operations at the end of this month when NFCA would take over the majority stake previously held by Enya Holdings.

He explained that a technical committee that selected NFCA would immediately engage the Chinese-run firm in negotiations up to May 22 in readiness for the takeover of the mine on May 30.

The taking over of LCM by NFCA ends the four-month long and anxious wait by the 1,719 miners who were laid off on January 22 this year when the mine was placed under care and maintenance.

"It is now with great pleasure that I announce the sale of the 85 per cent shares of the owners of Luanshya Copper Mines, Enya, to China Non-Ferrous Metals Mining commonly known as NFCA," President Banda announced. "NFCA was chosen over two other bidders, Luanshya Mineral Resources and Vedanta. A bid received from a Luanshya-based company, Exco Management Limited was for the non-core assets of Luanshya. At the conclusion of negotiations with NFCA, a decision will be taken as to whether the sale of non-core assets should be conducted."

President Banda said NFCA would immediately prepare to re-open Baluba Mine and return its pre-closure production levels as well as undertake the development of Muliashi Mine to produce 30,000 metric tonnes of copper cathodes.

"China Non-Ferrous Metal Mining will run the Luanshya Mine Hospital, the trust school and the sports and recreational facilities," President Banda said. "China Non-Ferrous Metal Mining is determined to recapitalise the operations of the mine, turn the mine into one of the most competitive operations in the region. They will support those local enterprises that are capable of supplying material, equipment and services, assist in setting up and implementing local business development plans and provide expert advice and long-term trading business."

President Banda said the Muliashi project would create more jobs for citizens.

He said NFCA had indicated to government that it did not intend to lay off workers and that it would increase its investment and improve the productive efficiencies of Luanshya Mine.

"I want to assure you that this investor knows and understand the business of mining. This investor is not in Zambia just to make quick money and get out at the first sign of stress in the business," he said.

President Banda complained that the global economic downturn had hurt the entire country.

"I want you to know that the drop in metal prices has hit us all hard in Zambia," he complained. "While our people here in Luanshya may be without food, your government has also been robbed of revenues in the form of taxes. But in these trying moments, we have been encouraged by the resilience and commitment of a number of our investors and our partners in this business."

President Banda praised investors who had not cut jobs or reduced mining activities such as Chibuluma, NFCA and Kansanshi mines.

He also urged investors such as Konkola Copper Mines (KCM) and NFCA to create more jobs.

He praised the people of Luanshya for their patience and for not resorting to trouble, which could have scared away investors.

And President Banda took time to discredit Kambwili and branded him a scrap metal dealer who was posing in mining gear to portray as though he was working hard when LCM was under care and maintenance.

"I am also aware that some of the opposition political parties, in particular the Patriotic Front, were bent on conveying messages of anarchy and violence. These people were working to undermine the efforts that your government was making by running commentaries in the press," he said. You may wish to know that these same people were calling me to tell me that the investors that had put the mine under care and maintenance wanted to come back and that government should consider them despite the manner in which they dumped you. I asked them that 'you want these investors to come back but you were in the forefront that they should go, what have they given you to ask that they should come back?'"

But Kambwili charged that President Banda sold the Luanshya mine through a corrupt method.

He described President Banda as a foolish leader for spending much of his time talking about him at the rally.

Kambwili said the sale of the mine to NFCA would bring Luanshya to an end.

"The mine has been given to the Chinese under corrupt methods. Rupiah's corruption will follow him to the grave," said Kambwili in an interview yesterday.

Kambwili said he knew that NFCA would be given the mine.

"I knew that a long time, the Chinese went to Standard Chartered Bank to borrow money to buy the mine. And I got information from State House that the Chinese were going there for discussions regarding the mine," he said. "Rupiah is the worst corrupt person I have ever seen."

Kambwili wondered why President Banda was telling the people of Luanshya that he had called him [President] that the mine should be given back to LCM.

"Corrupt people always want to find faults in straightforward people," he said.

Kambwili said President Banda just showed how foolish he was by spending much of his time talking about him at a rally at the expense of important issues affecting the people of Luanshya.

He said the Mineworkers Union of Zambia (MUZ) and National Union for Miners and Allied Workers (NUMAW) were compromised by the government and that they ended up supporting the sale of the mine to the Chinese.

"He has felt my weight, this confirms that I am a factor. Why is he is scared of me?" he asked. "I am glad that he has felt my weight, and I fought my fight successfully but the only thing I have failed is to change Banda over the investor to buy the mine. Each time he goes to bed, he feels my weight."

He said President Banda had succumbed to his pressure to ensure that the new investor takes over the running of the Luanshya Trust School, the Luanshya hospital and sports facilities, issues that were discussed during the district indaba that was called to look at what the future investor needed to do.

Kambwili complained that MMD cadres harassed him when he went to the directors' lodge where President Banda earlier held a closed door meeting with LCM officials.

Kambwili said the cadres asked him to leave the lodge because he had been insulting the government.

"The whole arrangement to harass me was made by Rupiah Banda himself, because he spent much of his time talking about me at the rally. That is why I am saying he is foolish," he said.

Kambwili, who was at the lodge to meet President Banda, was not given audience and some MMD officials were heard castigating the party's security wing for letting Kambwili enter the premises.

Meanwhile, Luanshya residents jeered Copperbelt MMD chairman Joseph Chilambwe when he attempted to criticize Kambwili for referring to labour deputy minister Simon Kachimba as the only dull Luvale he had ever met at a recent PF rally in Kitwe.

Chilambwe cut short his statement when he was about to allude to Kambwili, forcing him to end by his speech by calling for unity.

This was during the rally that President Banda addressed later.

Mines minister Maxwell Mwale warned investors who did not understand mining to leave it to those who understood it.

Mwale said NFCA had committed US$400 million for the development of the mine in Luanshya.

Mwale said there was no justification for companies such as Mopani Copper Mines (MCM) to continue laying off workers at the current copper prices of over US$4,500 per tonne.

Labour minister Austin Liato complained that MCM had not informed his office prior to the latest job layoffs at the company.

Liato said the labour ministry had no record of Mopani's intention and that he was only informed via a telephone call by a mine official after the news had already hit the press.

Liato said government had asked the investors to communicate with his office whenever there was a significant number of jobs to be lost.

Labels: CHINESE, FDI, LCM, NFC, NON-FERROUS METAL CORPORATION AFRICA, PARASTATALS

posted by MrK @ 3:19 PM