Maravi

MCM plant closure warning to investors, says Matale

MCM plant closure warning to investors, says Matale
By Gift Chanda
Wed 07 Mar. 2012, 11:59 CAT

THE closure of Mopani Copper Mine's treatment plant in Mufurila is a warning to mine investors to invest heavily in environmental protection, says Reverend Suzanne Matale. And Mopani Copper Mine says it was surprised at the action by ZEMA and may be forced to lay off staff following the closure.

Last Thursday, the Zambian Environmental Management Agency (ZEMA) ordered Mopani Copper Mine, a unit of leading global commodity trader Glencore International PLC, to suspend operations at its Mufurila West Heap Leaching plant for pollution violations.

"The Council of Churches in Zambia commends the decision by ZEMA to close down the Mopani Copper Mines acid plant situated at Butondo in Mufulira district," Rev Matale said on the development.

"We hope this action will send a strong message to other mine investors to ensure that they invest heavily to protect the environment and people."

She said the action to suspend operations at the plant had been long overdue, adding that human life and the environment had been negatively affected.

"While the acid plant has been closed, the effects of the emissions on people and the environment remain. Skin bleaches, increased respiratory complaints, leached rooftops, and other effects are still with the community. Our question is: whose responsibility is it to compensate the affected individuals and households? CCZ recommends that ZEMA takes MCM to court so that it is made to account for this irresponsible act," said Rev Matale.

But Mopani Copper Mines said it was surprised at the action by the environmental agency and may be forced to lay off staff following the closure.

"ZEMA has closely and properly monitored the Heap Leach project since the project's inception in 2007 and always found the operations to be in compliance with ZEMA regulations," company's chief executive officer Danny Callow said in a statement.

"It is unclear how data from ZEMA's investigations could differ from the previous five years' satisfactory results, evidenced by the continuation by ZEMA of issuing operating licences, including for 2012."

He said Mopani had not been furnished with findings from ZEMA's investigations adding that the shutdown of the plant may affect 300 jobs and 1.5 per cent of Mopani's annual copper production capacity.

"Every day of suspension is costing the company in the region of 525 million kwacha and unfortunately calls into question whether Mopani can continue to support 310 jobs created by the heap leach project," Callow said.

"Whilst the imminent closure notice appears to have been a precautionary measure on the part of ZEMA, we are not sure where they are getting their information from... . We have always conducted our heap leaching project in a responsible manner and in line with or exceeding the terms of our licence."

Mopani's parent company, Glencore, has been accused by non-governmental organisations of tax evasion and widespread pollution, although it has denied the accusation.

The European Investment Bank mid-last year froze all new loans to Glencore and its subsidiary, citing "serious concerns" over the group's corporate governance.

Labels: FDI, MCM, POLLUTION, SUZANNE MATALE

posted by MrK @ 2:31 PM