Kambwili maintains pressure on Luanshya mine
Saturday, January 22, 2011, 7:43
Luanshya Copper Mines (CLM) management has appealed to its employees not to succumb to Patriotic Front (PF)Roan Member of Parliament Chishimba Kambwili’s call for them to reject 10 per cent salary increment.
CLM Public Relations Officer Sidney Chileya said unlike Mr Kambwili’s assertions that management had offered 10 percent, the negotiations were still going on. Mr Chileya said it was unfortunate that the MP was commenting on matters which were still being discussed adding that the negotiations have not yet be concluded.
He regretted that there were moles in the negotiating team who were leaking information to the MP noting that the Parliamentarian was misleading the public.
He wondered why Mr. Kambwili chose to incite workers when he was not part of the negotiating team adding that he was pre-empting salary negotiation talks.
Mine Workers Union of Zambia (MUZ) General Secretary Oswell Munyenyembe could not comment on the matter as he was waiting to be briefed by press time.
Mr Kambwili was quoted in some sections of the media inciting miners at CLM to reject the 10 percent salary increment.
Yesterday, Labour and Social Security Minister Austin Liato warned the opposition MP against inciting the workers saying he would be held accountable for any industrial unrest that will occur at Luanshya Copper Mine (LCM).
Labels: CHISHIMBA KAMBWILI, LCM
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LCM recess heightens workers fears over jobs
By Mwila Chansa in Kitwe
Sun 14 Nov. 2010, 04:00 CAT
CHISHIMBA Kambwili has said the government and management at Chinese-run Luanshya Copper Mine (LCM) will have to kill him first before they can bring in any expatriate to replace a Zambian.
Commenting on fears by LCM workers that Zambians that operate the hoisting system would be laid off and replaced by expatriates from China once the new system is installed, Kambwili, who is opposition Roan PF member of parliament, urged the workers not to be anxious because they had him.
Over 800 workers at LCM will go on recess following management’s decision to temporarily close the mine to facilitate the rehabilitation of the hoisting system.
But sources at LCM feared that Zambians that used to operate the hoisting system would be laid off and replaced by expatriates from China once the new system is installed.
The source also said there was panic among workers because rumours of workers going on recess were heightening fears of permanent job losses.
However, LCM public relations manager Sydney Chileya allayed fears of job losses saying all the 807 employees proceeding on recess were still LCM employees.
He said all the employees would continue getting their basic salaries and housing allowances, except overtime and other allowances.
Chileya also said the employees were not being allowed to travel out of town without permission because they might be recalled anytime.
But Kambwili said the situation would not permit any Chinese national to replace a Zambian operating the hoisting system.
“If the government and the Chinese management at LCM want to bring in Chinese to operate the hoisting system, they will have to kill me first,” Kambwili vowed. “No Chinese national will be allowed to operate the hoisting system…if they allow that, it will mean that we have no government and if we have it, then it doesn’t care for the people.”
Kambwili said Zambians had been running mines as early as the 1920s and the job of winding, engine drivers had always been for Zambians.
However, Kambwili said he had no problem with the mine going on recess as long as the miners would be getting their salaries.
LCM will be on recess starting tomorrow till December 31.
Labels: JOBLOSSES, LCM
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Rupiah misleading Zambians, says HH
Written by Joseph Mwenda
Wednesday, September 23, 2009 6:20:14 PM
OPPOSITION UPND leader Hakainde Hichilema has said President Rupiah Banda is misleading Zambians in the diaspora by saying mine companies in the country had remained functional despite the global economic crisis.
Commenting on Banda’s address to Zambians living in New York on Tuesday, where he said only Luanshya Copper Mine had been closed due to the global recession, Hichilema argued that the President’s speech was a sign that he did not comprehend issues happening in the country.
The President is misleading people in America and that goes to show that he does not comprehend issues at hand because of his laissez-faire attitude,” he said.
“It was not only Luanshya Copper Mine that closed, Albidon mines in Kafue closed operation as well as Bwanamkubwa Mine on the Copperbelt.”
Hichilema said more than 10, 000 jobs were lost due to the closure of the mine companies and said the country was far from recovering from the job losses.
“We are talking about job losses in the mine companies, what about the mine suppliers, what about the mine contractors? All those put together, we will be talking about over 10, 000 job loses and we are nowhere near recovering from that,” Hichilema said.
He said it was unfortunate that the President was not giving the correct picture of the situation in the country to Americans and Zambians living in that country.
“He is misleading Americans and Zambians who should help us recover from this crisis we are facing, what kind of leadership is that?” Hichilema wondered.
“I would like to remind the Zambians in the diaspora that they have a president who has a laissez-faire attitude and he is lowering the integrity of the presidency,” he said.
He said it was not the first time that President Banda had been telling lies.
“That’s what he does, he lies, he has lied about the sale of ZAMTEL and he is not telling the truth about his argument with the NCC chairman (Chifumu Banda) over the mandate to extend the constitution review process.
President Banda told Zambians living in New York that the country’s economy was doing well because of the sound policies implemented by late president Mwanawasa in the past eight years.
He further said although the country was affected by the global economic crisis, it managed to keep companies and industries running.
President Banda said only Luanshya Copper Mine was closed for a short time and that it had since been re-opened, with 1,500 people getting back their jobs.
He said copper prices that went down by about 70 per cent had started rising, giving hope for better economic performance.
President Banda is today expected to make his maiden speech to the 64th General Assembly of the United Nations whose theme is “effective responses to the global crisis”
Labels: HAKAINDE HICHILEMA, LCM, LUANSHYA COPPER MINES, RUPIAH BANDA
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Baluba Copper Mine starts blasting
By Business Reporter
Baluba Copper Mine has started blasting for copper and other underground activities ahead of planned resumption of production in December. This comes after the mine’s completion of most of the rehabilitation works and replacement of obsolete machinery by the new owners, the Non-Ferrous Corporation (NFC) Africa.
Baluba Mine is a unit of Luanshya Copper Mine (LCM), in which China Non-Ferrous Corporation (CNMC) recently bought
85 per cent shareholding from
Enya Holdings, which withdrew and placed the mines under care and maintenance.
The balance of the stake in Baluba is held by the Government through the ZCCM Investment Holdings (ZCCM-IH).
CNMC took over the operations of the Baluba and Mulyashi copper project, which was due to start producing 60,000 tonnes of copper in 2010, and said it would spend US$400 million to develop Mulyashi and start operations at Baluba.
NFC Africa chief executive officer, Luo Xingeng said in a statement released in Lusaka yesterday that the company had undertaken the major rehabilitation works involving replacement of equipment.
Mr Luo said the replacement of obsolete and outdated equipment was almost over, and the company conducted the first blasting last Sunday morning.
“The previous investor had exhausted all the developed reserves and the development being embarked on is both primary and secondary,” he said.
The Government had initially said production at Baluba would start in May this year when the takeover was completed, but the new owners undertook a thorough study on the assets and operational requirements.
Mr Luo said the study had revealed that the cost of rehabilitating and replacing equipment at Baluba had risen.
He said NFC Africa would give priority to the development of the Baluba underground mine, the 11.4kilometre cable that conveys copper ore from the mine to the processing plant, and the upgrading of the copper processing plant.
“Initially, $60 million was earmarked for the rehabilitation and replacement of equipment but the figure has gone up to $74 million after more malfunctioning equipment was discovered,” he said.
Previously, underground development at Baluba mine was carried out by a contractor but CNMC had decided that they should carry out the development on their own.
Mr Luo said NFC Africa has since employed 200 former workers at Prosec Amco, the previous contactor, as part of the underground development team.
Enya Holdings, which is a joint venture of the Bein Stein Resources Group (BSRG) and the International Minerals Resources (IRM), previously owned LCM but they placed the mine under care and maintenance in December before CNMC purchased it for US$50 million.
Labels: BALUBA MINE, CNMC, COPPER, ENYA HOLDINGS, LCM
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Mwale bemoans politicising of Luanshya Copper Mine
Written by Mutuna Chanda in Luanshya
Thursday, June 25, 2009 3:28:03 PM
MINES minister Maxwell Mwale has expressed disappointment that Luanshya has been turned into a political playfield by the opposition in an attempt to gain political mileage out of people's suffering.
During the official handover of Luanshya Copper Mine (LCM) from Enya Holdings to China Non-Ferrous Metals Mining Company (CNMC) in Luanshya yesterday, Mwale said it was also disappointing how easily the affected miners had fallen prey to such politicians.
"What has been disappointing in the past six months is how Luanshya had been turned into a political field by the opposition in an attempt to gain political mileage out of the suffering of the people of Luanshya," Mwale said.
"Equally disappointing has been the ease with which some of our own people, mostly the affected ex-miners, had fallen prey to such politicians."
He said despite much pressure from the opposition, the government did not depart from its resolve of re-opening the mine.
"NFCA has set out a clear programme of operations for the resumption of Baluba mine and concentrator and also have a clear programme for the development of the new mine-Mulyashi," he said.
Mwale urged the would-be employees of LCM to work hard and be focused.
And Chinese Ambassador to Zambia Li Qiangmin urged CNMC to implement its investment plan as quickly as possible bearing in mind the plight of the unemployed former miners.
"The economic outlook world-wide is still gloomy and the current financial crisis shall deeply affect the global economy including Zambia and China for a long period of time," Ambassador Li said.
"CNMC has an exciting plan for the mine and the Luanshya community yet there are bound to be tangible difficulties ahead. Challenging as they are, we can only succeed through the close cooperation and joint effort by all stakeholders... I call upon the Zambian government and the local Luanshya government to continuously help CNMC grow without obstacles."
He also urged the Luanshya community to do all they could in supporting CNMC.
"In the hard time, CNMC committed itself not to reduce on investments nor to cut on production and not to lay off workers and we are glad to see that Chinese business people keep visiting Zambia and bringing foreign direct investment to Zambia," he said.
"In two weeks we are going to commission the Chambishi Copper Smelter with a total investment of over US $350 million and recently two large farming companies visited Zambia and showed great interest in large scale farming projects in Zambia."
And CNMC vice chairman Tao Xinghu, who is also NFCA Zambia president, said the investment in LCM was long term.
He thanked the Zambian government and its people for the trust they had shown in CNMC.
Tao said so far, US $520 million had been invested in the Chambishi economic zone and that 3,900 jobs had so far been created in the area.
Labour minister Austin Liato urged would-be employees of LCM to work hard and enhance their relationship with their new investor.
Former LCM chief executive officer Derrick Webbstock apologised to the government and the people for the problems that Enya Holdings created by putting the mine on care and maintenance and subsequently retrenching miners.
Mine Workers Union of Zambia (MUZ) LCM branch chairperson Stanslous Mwimbe advised parliamentarians to ensure that they introduced laws that would facilitate good conditions for workers countrywide.
Labels: LCM, LUANSHYA COPPER MINES, MAXWELL MWALE
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Chinese group to take over Munali Nickel mine
Written by Chiwoyu Sinyangwe
Tuesday, June 16, 2009 7:35:46 AM
CHINESE influence in the country’s mining sector is steadily increasingly with China’s giant metal producer, Jinchuan Group set to take over operations of Munali Nickel mine from Australian-based Africa-focused exploration and development company, Albidon.
Just last week, the government announced that China Nonferrous Mining Corporations (CNMC) was to take over 80 per cent of the stake in Luanshya Copper Mines (LCM) which was placed on care and maintenance last January by its previous owners, Enya Holdings, citing low copper prices at the time.
According to mines minister, Maxwell Mwale, the country’s inaugural and sole nickel mine was expected to re-open next month after operations were suspended in January owing to low nickel prices.
Mwale said Jinchuan Group, the off-take partners for Albidon Zambia, was considering increasing its stake in the mine to about 80 per cent from the current 20 per cent.
“Within the next one month they should be on course...as I was leaving (Zambia) they had already agreed on the scheme of arrangements,” Mwale told Reuters in an interview on the sidelines of the World Economic Forum for Africa in Cape Town.
Prior to the shutdown of the mine, Jinchuan had a life-of-mine off-take agreement with Albidon.
At full capacity, the mine, which came on stream in May 2008, was expected to produce about 10,500 tonnes of nickel annually.
By the time the mine was suspended, nickel prices on the London Metal Exchange had plummeted by about more than 80 per cent.
Labels: CHINESE, CNMC, ENYA HOLDINGS, FDI, LCM, MAXWELL MWALE, MUNALI NICKEL MINE
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Priest warns govt on Chinese taking over LCM
Written by Zumani Katasefa in Kitwe
Wednesday, May 13, 2009 3:35:21 PM
FR Cletus Mutunu of Uganda Martyrs Catholic Parish in Luanshya has said the government should not be docile over the Chinese as the new owners of Luanshya Copper Mine (LCM).
In an interview yesterday, Fr Mutunu said the Chinese had a poor record of human rights and that some of them were also involved in scandals of copper theft.
"The opening of Luanshya mine is good news to the people of Luanshya and Zambia as a whole, it is an indication that we are heading to the right direction. But the government should not be docile, the Chinese have a poor record of human rights, in the theft of copper, it is the Chinese involved," Fr Mutunu said.
He said people working for the Chinese owned companies in Zambia were subjected to poor salaries and working conditions.
Fr Mutunu challenged Chinese investors to create better working conditions for their workers.
"It is a challenge to our Chinese investors to create better working conditions for their workers. We expect our investors to respect our people, we were all created by one God," Fr Mutunu said.
President Rupiah Banda last Saturday said the NFCA would take over 85 per cent shareholding in Luanshya mine and that the Chinese firm was expected to take over operations by the end of this month.
NFCA also runs the Chambishi Mine.
And UPND Copperbelt provincial trustee Kennedy Kalunga said the Chinese investor should not come and abuse the people of Luanshya but should respect labour laws.
Kalunga also said government should not have sold 85 per cent shares of the mine to NFCA, saying they should have instead taken 49 per cent and sold 51 per cent shares.
"The government should have learnt a lesson, it sold 85 per cent shares to Binani Group of Companies, who later abandoned the mine, then again 85 per cent to J&W, after the tax concession they decided to pull out. If government had taken 49 per cent shares in the mine, the control of the mine would have been 50-50, government would also have the political will to control the mine," he said.
Kalunga said government should also ensure that NFCA contracted local companies to ensure that employment was created for people.
Labels: CHINESE, CLETUS MUTUNU, LCM
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Lumwana to produce 170,000 tons this year
Written by Kabanda Chulu
Monday, May 11, 2009 11:40:14 PM
LUMWANA Mining Company (LMC) has projected to produce 170,000 tonnes of copper metal in concentrates this year at the
average operating cost of US $1.15 per pound.
And Equinox Minerals, Lunmwana’s holding company, has secured a US $25 million debt facility with FMO Development Funding Institution of Netherlands that would be channeled towards with the development of Lumwana town.
Releasing financial results for the quarter ending March 31 2009 and the expected outlook for the year, Equinox Minerals president Craig Williams last week stated that 23,966 tonnes of copper metal was sold during the quarter.
“During the quarter, 2,877,141 dry metric tonnes of ore producing 57,085 dry metric tonnes of concentrate at an average copper grade of approximately 39 per cent were produced at Lumwana and concentrate deliveries of 63,063 dry metric tonnes were sold to local and international off-takers containing a combined copper metal content of 23,966 tonnes,î Williams stated. ìAs anticipated, the Lumwana has not yet reached ëcommercial productioní and as a result, all copper sales, revenue and operating costs have been capitalised for the first quarter of 2009 but subject to final assessments and we expect that the Lumwana Mine will achieve commercial production from the commencement of the second quarter of 2009.”
Williams stated that Lumwana expected to produce 170,000 tonnes (375 million pounds) of copper metal in concentrates at the average operating cost of US $1.15 per pound for the year.
He stated that abnormally heavy rainfall in March negatively impacted the Lumwana mine, causing the mining and processing operations to be suspended on a number of occasions during the month.
“Within one 24-hour period, an estimated 120 mm of rainfall fell, representing about 10 per cent of the yearís average rainfall with a total of 440mm falling within a 30 day period. This event equated to a greater than one in 100 year incident, occurring within three months of starting the commissioning phase of the mine. Overall, this wet season has been reported in Zambia as being the wettest in 40 years,” Williams stated. “As a consequence, the ramp up of both mine and process operations was interrupted in March, but resumed by the end of the quarter and we continue to have an objective of completing Lumwana ramp up to full production by mid-2009.”
Williams stated there were significant opportunities at the Lumwana project to expand and optimise the concentrator and mine throughput rate and to assess and evaluate the additional near mine deposits discovered to date.
He stated that Equinox had also completed the uranium feasibility study (UFS) investigating the onsite treatment of discrete and high grade uranium mineralisation contained within the Lumwana copper pitshells.
On 14 April 2009, government through Zambia Development Agency (ZDA) approved the establishment of Multi Facility Economic Zone (MFEZ) within the Lumwana Large Scale Mining that would create an investment zone to attract both local and foreign businesses.
“Together with ZDA approval, it is anticipated that government will undertake to support the Lumwana MFEZ by giving explicit protection to Equinox’s cornerstone investments at Lumwana and will also undertake to promote and maintain new and existing investment agreements for businesses within the Lumwana MFEZ,” Williams stated.
The principle of MFEZ developments were incorporated through the ZDA Act of 2006 and its main objective is to catalyse industrial and economic development in the manufacturing sector to enhance domestic and export oriented business.
On the dispute with Zesco Limited over electricity charges, which is in the Lusaka High Court, Williams expressed optimism that the matter could be resolved in a reasonable manner.
Lumwana has since obtained a protective relief action in response to the Notice of Termination initiated by ZESCO and the matter was heard in the Lusaka High Court on March 17, 2009 and again on April 6, 2009 and has subsequently been adjourned by the Lusaka High Court to May 27, 2009, to allow the parties further opportunity to conclude negotiations.
Apart from developing the mines, LMC is also developing the Lumwana town development and with over 500 houses completed to date while commercial and retail developments were advancing and a self-sustaining modern town environment was being developed.
“To support this unique development the Company has established the Lumwana Property Development Company (LPDC) to act as a special purpose vehicle to own and manage the new Lumwana town. LPDC has secured US $25 million debt facility with Nederlandse Financierings-Maatshappij voor Ontwikkelingslanden N.V. (FMO), which is the Dutch government development funding institution, to cover some town infrastructure costs. Drawdown of this facility can commence once Equinox meets a number of conditions precedent,î stated Williams.
Equinox Minerals is an international mining and exploration company with dual listing on the Toronto Stock Exchange and the Australian Securities Exchange.
The Company is focused on operating its flagship and 100 per cent owned Lumwana Copper Mine in Zambia. The Lumwana copper mine is expected to produce an average of 172,000 tonnes per year of copper metal contained in concentrates for the first six years of its 37 year mine life.
Labels: COPPER, EQUINOX, LCM, LUMWANA MINING COMPANY
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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
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NFC, Vedanta among favourites to take over LCM operations
Written by Chiwoyu Sinyangwe
Friday, May 01, 2009 9:52:56 PM
CHINESE Non-Ferrous Corporation (NFC) and Vedanta Resources Plc are among the favourites to take over operations of closed Luanshya Copper Mines (LCM) units, mines minister Maxwell Mwale disclosed yesterday.
And Mwale has confirmed that Zambia Copper Investment (ZCI) is not among the companies that had lodged in their bids to take over the mine, which has been closed since last January.
In interview, Mwale said the government was currently evaluating the bids received so far and that by next week, an announcement of the preferred company to commence negotiations with the government would be made with a view to reopening the mine next month.
Mwale named the other companies that had successfully filed the bids to take over running of the mining units which include Baluba Shaft and greenfield Mulyashi project as Exco Corporation of Luanshya and another local company called Luanshya Minerals Resources which is also based in Luanshya.
The mines minister who declined to give details on the two mines, however, stressed that the two local companies had partnered with foreign mining firms in their bids.
"The other bids we have received are from NFC, the operators of Chambishi Copper Mines, and then Vedanta guys, the Konkola Copper Mines [KCM]," Mwale said. "The close of bids was yesterday [Thursday] at 17:00 and by 17:15, the bids were opened. So, right now, our technical committee is currently evaluating the bids and we hope by next weekend, we should come up with a company to open negotiations with. We can't wait any longer because the people of Luanshya have suffered for too long."
And Mwale dismissed complaints from ZCI that the former minority shareholders in KCM were not given adequate notice to enable them take part in the bids for LCM units.
Last week, ZCI which is based in Bermuda complained that there was not enough time for mining companies that operate outside the country to submit bids for LCM, which had been under care and maintenance since January by its previous owners, Switzerland-based International Mineral Resources AG and Bein Stein Group.
Until last year, ZCI owned 28.4 per cent stake in KCM which it controversially sold off to Vedanta Resources under a "Call Option Deed", making Vedanta KCM's largest shareholder.
"In fact, we first approached them (ZCI) when we had the problem in Luanshya so that they could partner with ZCCM Investment Holdings (ZCCM-IH) but all along they have been delaying to come up with a technical partner," said Mwale. "So, they can't blame us for their failure to find a partner. We can't wait any longer, the people of Luanshya need to get their jobs back."
LCM units include the Baluba Shaft and Mulyashi project, which LCM had planned to complete building in 2010 at a cost of US$354 million and would have produced up to 60,000 tonnes in its initial stage.
Labels: LCM, NFC, VEDANTA
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Govt will not name a new investor for Luanshya mine soon, Kambwili
Friday, April 24, 2009, 21:40
PF Roan Member of Parliament Chishimba Kambwili has claimed that government will not announce the name of a new investor for Luanshya mine until after August. Mr. Kambwili also accused Mines minister Maxwell Mwale of corruption for bribing the two mine workers’ unions in Luanshya during a press conference held at his residence.
He said Mr.Mwale has been bribing the Mines Union of Zambia (MUZ) and National union of miners and allied workers(NUMAW) Roan branch officials to side with the government on an investor he named for Luanshya Copper Mine (LCM).
Mr. Kambwili challenged the minister to come out in the open and challenge him on whether he did not receive an undisclosed sums of money from LCM chief executive officer Derek Webstock which he used to bribe the union officials.
Mr. Kambwili also accused the officials forsaking their fellow miners because of the bribes and compromised on pressurizing government to announce an investor to take over the min
He said a named MUZ branch official told him that the minister gave them K1 million each to help government calm the miners.
He called on the MUZ Roan branch officials to apologise to their fellow miners and to him, for neglecting the Luanshya community.
He further warned the Police command that they will be fired once PF takes over Government in 2011 for their partiality.
ENDS/MM/PK/ZANIS
Labels: CHISHIMBA KAMBWILI, CORRUPTION, LCM, MAXWELL MWALE
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Equinox halts trading, hopes to raise $124m for Lumwana
Written by Chiwoyu Sinyangwe
Monday, April 20, 2009 4:34:24 AM
EQUINOX Minerals last week announced it has entered a trading halt in order to raise 181 million Australian dollars [US $124 million] from Australian and Canadian investors to go towards the Lumwana Copper Mine.
The trading halt is both at the Canadian and Australian Stock Exchanges where Equinox Minerals is dual-listed. According to market data obtained over the weekend, Equinox Minerals stated that the details of the offering, including the size and price, were yet to be determined.
Market data disclosed that Equinox Minerals planned to use the proceeds to strengthen its capital position, evaluate and fund expansion opportunities at its Lumwana Copper project, and to buy and extinguish a royalty relating to the project.
The move comes just a week after Equinox reorganised its debt facility.
"It had a US $224 million [314 million Australian dollars] payment due at the end of the calendar year, but under the new terms, the payment has been reduced to US $138 million over the same period and that the big payment was US $104 million due in September this year.
"There was no requirement in the refinancing to raise equity, but the chief executive, Craig Williams, said Equinox had opted for it rather then closing out its quite attractive hedge book," the market data read in part.
The flagship Lumwana Copper Mine came on line at the end of last year and is expected to produce 172,000 tonnes of cooper this year, making it a bigger producer than the slimmed down OZ Minerals, which will retain the Prominent Hill mine.
Lumwana Copper Mine, which has a mine life of 37 years, has attracted the interest of many potential suitors, including First Quantum Minerals of Canada, which owns a 19 per cent blocking stake.
Equinox shares have fallen 56 per cent since they traded as high as 5.60 Australian dollars a year ago. Shares last traded at 2.57 Australian dollars.
Last Friday, President Rupiah Banda officially opened Lumwana Copper Mine- Africa's largest open pit mine.
Labels: EQUINOX, LCM
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Govt closes bidding process for LCM
Written by Chiwoyu Sinyangwe
Thursday, April 16, 2009 2:37:03 PM
THE government yesterday closed the bidding process for the takeover of operations at Luanshya Copper Mines (LCM) which is expected to resume operations this June, sources have disclosed. Mines minister Maxwell Mwale was not readily available for comment on the matter.
But according to sources within the ministry, LCM which was closed and placed under care and maintenance last December by its former owners - Switzerland-based International Mineral Resources AG and
Bein Stein Group Resources of Israel [that would be the Beny Steinmetz Group or BSG - MrK] would be reopened by June this year.
The sources explained that after the LCM assets which included Baluba Shaft and US $351 million greenfield Mulyanshi copper project were handed back to the government last week, the Ministry of Mines wanted to expedite the selection of the new investor from among the companies that had shown interest in taking over the mine.
The sources explained that some of the mining companies that had expressed interest in taking over the mine included Vedanta Resources Plc, the majority shareholders in Konkola Copper Mines, and Chinese Nonferrous Metal Mining Group, with the latter strongly tipped to take over the mine.
Only Baluba and Mulyanshi are to be sold to the new investor while LCM management was intending to resume operations of the Chambishi smelter in June and would be treating concentrates from Democratic Republic of Congo and other mines within the country.
The Chambishi smelter has the capacity to produce around 4,000 metric tonnes of cobalt as well as 40,000 tonnes of copper a year.
Recent indications from the mines ministry are that the prospective LCM investor would be given a 65 per cent stake in the company, with the government through ZCCM Investment Holdings (ZCCM-IH) retaining the remainder, 35 per cent.
LCM management put the mine under care and maintenance in December last year, blaming the decision on the collapsed international copper prices.
The mine was finally handed back to the government after April 6, at which LCM management met the firm’s creditors where 86 per cent of them agreed to a repayment scheme which meant the mine paying half of the debt it owes.
Labels: BENY STEINMETZ GROUP RESOURCES, FDI, LCM
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Govt to conclude negotiations with new LCM investor
Written by Chiwoyu Sinyangwe
Saturday, April 11, 2009 5:58:06 AM
GOVERNMENT is by June this year expected to conclude negotiations with a new investor to take over the running of the financially troubled Luanshya Copper Mines (LCM), mines minister Maxwell Mwale disclosed yesterday.
In an interview yesterday, Mwale said
a number of local and international firms had continued to show interest in taking over both the Baluba Shaft and the US $354 million greenfield Mulyashi copper project.
Mwale also disclosed that 86 per cent of LCM creditors had agreed on the payment of liabilities which would be settled at an agreed rate and time.
Mwale explained that following the meeting with the mine creditors, the assets of the mines had now been surrendered to government while LCM would continue to look after the mines in care and maintenance status.
He also said following the April 6 meeting, LCM creditors and the mine management agreed on the payment of liabilities which would be settled at an agreed rate and time.
“LCM management came to brief me about the meeting they had on the 6th of April with the creditors and they told me it went on very well. 86 per cent of the creditors agreed to the scheme while 14 per cent did not,” Mwale said. “Now the scheme will proceed to the [High] Court as by law.” Mwale also said the government wanted to expedite the selection of the new investor to ease the suffering of the people of Luanshya.
“We should come up with the new investor by June,” said Mwale. “We can’t keep the issue of Luanshya mine for too long...the people of Luanshya have suffered for so long.”
Labels: LCM, MAXWELL MWALE
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DC rejects pastors’ petition over closed Luanshya Mine
Written by Zumani Katasefa in Luanshya
Sunday, March 22, 2009 6:27:46 PM
LUANSHYA district commissioner George Kapu has rejected a petition by local pastors over the mode of selling the closed mine. And Kapu has also blocked the pastors from going to see President Rupiah Banda at State House over Luanshya Mine.
The pastors in a petition to President Banda through Kapu on Wednesday stated that
they were suspicious over the manner the government intended to privatise the closed Luanshya mine to a Chinese investor.
In their petition presented and signed by Luanshya Pastors Fellowship chairman Morgan Kanjolo, secretary Jossie Sakala and spokesperson Jevan Kamanga, the clergymen stated that earlier, President Banda had promised that ZCCM-IH would take over the mine on a short-term basis as the government was looking for an investor.
"Why are we rushing directly into giving NFC (Non-Ferrous Mining Company)? We know the Chinese have all the dollars in the world as at now. But that does not mean we have to rush into getting any company from China without carefully selecting the right investor," read the petition.
"Today, we got some wind that in the first week of April, a new investor will be announced and that NFC is likely to be the company to be announced. It is a welcome move and that is what we have been looking for. But we have our reservations."
The pastors said they had a lot of unanswered questions by government over the sale of the mine.
"From the six interested investors, we came down to three, then one. What happened to an investor who wanted a management buy out?" they wondered.
The pastors stated they should not be mistaken for politicians.
They also demanded to know the intended manpower capacity of the would be investor and what mine shafts the investor would take.
"Which entities are they taking? Is it 14, 18 and 28 shafts only or is it Muliashi and Baluba Mines? Is it including the smelter? Are they taking the whole lot or part of?" they asked.
The pastors stated that during a meeting with deputy labour minister Simon Kachimba he suggested to them to form small groups and put money together to buy the crusher at 28 Shaft, the Nchanga Farms, the Slags.
But Kapu rejected the pastors' petition because politicians were allegedly using them. Kapu also rejected the petition on the basis that the government had already answered many of their concerns. Kamanga expressed concern with Kapu's handling of their petition.
He said Kapu was not comfortable with the mention of NFC as the preferred bidder for the closed mine. He said Kapu demanded to know the source of their information regarding the preferred bidder.
Labels: DISTRICT COMMISSIONERS, GEORGE KAPU, LCM, PRIVATISATION
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Govt to increase stake in mines
Written by Fridah Zinyama
Friday, March 20, 2009 3:39:41 PM
MINES minister Maxwell Mwale yesterday said it has been difficult for the government to exert any meaningful influence or have any say in operations of mining companies with shareholding of less than 25 per cent.
In an interview, Mwale explained that the government’s decision to increase its stake in mining companies would change the scenario, giving it an upper hand in participating in the operations of the sector.
“The first mine that government is going to increase its stake in is Luanysha Copper Mines (LCM),” he said. “We are actively looking for investors for this mine and once an acceptable one is found, government will sell about 75 per cent and remain with 25 per cent,” he said.
Already, Zhonghui Mining, a Chinese mining company, has shown interest in taking over operations of LCM which is currently under care and maintenance.
Mwale explained that at the moment, his ministry and the Ministry of Finance and National Planning were working on modalities that would help the government increase its stake in other mining companies which had also been placed under care and maintenance.
“We realised that the decision to own less than 25 per cent shares in the mining companies worked against us, as we did not have much say on investment decisions which were being made and our influence as government was equally limited,” said Mwale.
Early this week, Copperbelt University (CBU) professor in the School of Business John Lungu welcomed the government’s decision to increase its stake in mining companies from 15 per cent to 25 per cent, saying this would help the sector survive the current economic problems.
“The private sector is driven by high profit margins and it is normal for them to want to withdraw in times of economic recession,” said Prof Lungu in an interview. “On the other hand, government is more interested in providing social services to its people. This is why in such economic times, government’s decision to increase its stake is welcome as it will help the private sector to share the burden of high production costs.”
Labels: LCM, MAXWELL MWALE, MINING, NATIONALISATION
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Govt has kept its promise on LCM, says Banda
Written by Masuzyo Chakwe
Wednesday, February 25, 2009 3:28:41 AM
PRESIDENT Rupiah Banda yesterday said the government had kept its promise and negotiations on the handing over of Luanshya Copper Mines to ZCCM-IH are quite advanced.
Speaking when Luanshya district commissioner George Kapu presented a petition from Luanshya residents over the government's delay to reopen the closed Baluba Mine which was placed under care and maintenance by Luanshya Copper Mines (LCM), President Banda first thanked Kapu for travelling a long distance at such short notice to deliver the petition from the people of Luanshya.
"I must congratulate you district commissioner for the effort that you have made in recognizing the importance of such a petition. Luanshya is not experiencing these problems for the first time, therefore the people of Luanshya tend to be very agonised to be affected more perhaps seriously than anyone else because they have gone through and they have suffered for many years," he said.
President Banda explained that when the whole saga started, he travelled to Luanshya and held discussions over the matter, promising that the government would engage the owners of LCM to ensure that the mine was not closed but instead handed over to government through Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) who were the vehicle for ownership of mine interests.
"We promised them that, in the presence of all their members of parliament, the district commissioner himself, all the union leaders in other words representing the workers, the management of LCM and the appropriate ministers of this government namely the Minister of Finance and the Minister of Mines," President Banda said
"We promised that we would engage the mines and I want to take advantage of this petition that you have given me that we kept our promise and as we are speaking, the negotiations are quite advanced as to how these mines would be handed over. It is not as simple as some people may want to make it, that we just go and say because this is a mine in Zambia we just take it over because we have to realise that the world has changed, this world is not about nationalising of people's assets. We have to negotiate with them to conclude properly these negotiations so that we can go ahead."
President Banda said the government had also engaged other mining groups in the world who were interested to come as strategic partners.
He said the government's discussions with them were also advanced and were only awaiting the conclusions of the negotiations on the LCM mines.
"Therefore, I want to say people, you the people of Luanshya and the DC for the prompt action you have taken, I have accepted the petition. I know what is in it because you told me already and what is in here is that they are requesting that the government should speed up the process of rejuvenating Luanshya Copper Mines and I want to assure the people of Luanshya and the people of Zambia that your government is not sleeping over this matter. I think every day on our screen we are seeing continuous delegations from our government visiting LCM and assuring the workers, going underground the mines to check that the maintenance and care of the mines doesn't result in flooding of the mines," President Banda said. "So once I want to give this assurance to everybody that we are negotiating, we will be about to conclude and when we are ready, we will let you know what we concluded accordingly."
Earlier, Kapu said he received a petition from the people of Luanshya on Monday and promised them that he would deliver it to President Banda.
And Roan Patriotic Front (PF) member of parliament Chishimba Kambwili said he was humbled by Kapu's response.
Kambwili said he believed that they were working as a team for Kapu to make an effort to bring the petition to State House.
Kambwili appealed to President Banda to quickly emulate Kapu's style and sort out the issues in Luanshya at the speed at which the petition has been delivered to him.
Kambwili said if this could be done, then President Banda deserved a pat on the back.
Scores of Luanshya residents on Monday morning took to the streets over the government's delay to reopen the closed Baluba Mine, which was placed under care and maintenance by Luanshya Copper Mines (LCM). The closure of the mine led to over 1,700 job losses.
Labels: LCM, RUPIAH BANDA, ZCCM-IH
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Luanshya residents demonstrate
Written by Zumani Katasefa in Luanshya
Tuesday, February 24, 2009 8:48:59 AM
SCORES of Luanshya residents yesterday morning took to the streets over the government's delay to reopen the closed Baluba Mine which was placed under care and maintenance by Luanshya Copper Mines (LCM). Clergymen from various churches and Roan member of parliament Chishimba Kambwili led the former miners, women and children in the protest over the plight of the people of Luanshya.
The protestors covered a distance of about 15 kilometres from Mpatamato to Luanshya Civic Centre, causing traffic jam.
Business in the mining town came to a virtual standstill as the residents marched carrying placards that read: "Jobs first legal matters last" and "RB please save the mining industries from greedy investors" among others.
"We want jobs! We want jobs!" shouted the protesters, most of whom were clad in overalls and blew whistles.
At the civic centre grounds, the protesters demanded to be addressed by either mines minister Maxwell Mwale or Copperbelt provincial minister Mwansa Mbulakulima.
However, United Church of Zambia (UCZ) Reverend Derrick Kalanga said the Church would not remain silent over the problems prevailing in Luanshya following the closure of the mines.
Rev Kalanga said the people of Luanshya were disappointed with the way the government had behaved towards the problems that they faced.
"As the people of Luanshya we are disappointed with our government, the way it has treated the crisis of the closure of the mines in Luanshya. I would like to say only people with myopic minds cannot see the crisis the people of Luanshya are in," he said. "We are aware that the President had taken a lot of trips outside the country without taking any concrete measures as to mitigate the job crisis in Luanshya."
He said prior to the October 30 presidential election last year, President Banda promised people jobs, but the unemployment rate in the country had since risen.
He said it was unhealthy for any reasonable government to fail to look at the plight of its people.
"Our humble request to the government is to find an investor to invest in Luanshya Copper Mines. It's surprising to hear from [Dr] Kalombo Mwansa the Minister of Home Affairs that Luanshya Copper Mines is still holding on to the mines because of the unsettled bills. The first question is why did the government not tell LCM to settle their bills before they could close the mine?" Rev Kalanga asked. "Twakana ukutwangasha [We have refused to be fooled]."
Rev Kalanga said the sovereignty of the government should not only regulate the interest of the investor but be based on the domestic relationship.
And Fr Patrick Mwela of the Roman Catholic Church said it was unfortunate that government had decided to turn a blind eye to the problems that the people of Luanshya were facing.
"Government should listen to the voice of the people, because it is God speaking through them," he said. "The voice of the people is the voice of God."
He said the people of Luanshya were not asking for too much because all they needed were jobs.
"They are not asking for too much, they are not asking for posh cars. All they want is just to eat," he said.
Fr Mwela said children were out of school because of the financial crisis which had affected them and it seemed as though the government had condemned the people of Luanshya to death.
Luanshya District pastors fellowship spokesperson Jevan Kamanga said the government should provide US$48 million so that the mine could start running for a year as they look for another investor.
He said the situation could have being avoided had the government been serious enough.
Kamanga said the government should allow a local investor to partner with foreign investors if the mine was to run effectively.
Kamanga said what was happening in Luanshya was non-political and that it was cardinal for both the government to work hand in hand with opposition leaders to find a solution to the problems the people of Luanshya were experiencing.
Another clergyman, Fr Charles Chirwa said it was pointless to tell people to diversify in agriculture when they had no fertiliser.
"These people are used to mining, so it does not make sense to ask them to diversify. You need to train them as farmers," Fr Chirwa said.
Kambwili said the government should state clear ly when the mine would be opened.
He said the people of Luanshya would again next Monday stage another protest if the government would not announce when the mine would be opened.
Some residents gave government up to February 28 in which to reopen the mine, failure to which there would be no peace in the area.
"We are not going to dance to the tune of government. We need to fight and fight," said one resident on condition of anonymity.
Another resident, Celestine Chomba, said the government should stop telling people to diversify at the time the mines were down.
"We are not going to diversify. Diversify ifinshi? Icho chisungu chabo ba politician [Diversify in what? That is just English for the politicians]," Chomba said.
Another resident, Thomas Zulu said he was disappointed that Mwale had failed to address the residents.
"It is very embarrassing that the minister has failed to come and address us, even the Copperbelt minister is not here," Zulu said.
Zulu said Luanshya member of parliament Simon Kachimba, who is also labour deputy minister, was informed about the demonstration but decided to stay away.
"If people who voted for him are suffering and he decided to stay from such a thing, then what type of a leader is he?" Zulu asked.
The residents also threatened not to allow Luanshya district commissioner George Kapu to leave without an assurance over the mine.
Kapu said the government was committed to solving the problems that Luanshya residents were facing but could not say when the mine would be opened because he was just a messenger.
Shareholders recently pulled out of LCM and placed it under care and maintenance due to low copper prices, which they said had increased operational costs. LCM owns Baluba Mine and their pullout led to over 1,700 job losses.
Labels: GREAT DEPRESSION II, JOBLOSSES, LCM, LUANSHYA
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Kambwili protests govts delay in aiding LCM
Written by Patson Chilemba
Wednesday, February 18, 2009 7:44:40 PM
ROAN Patriotic Front (PF) member of parliament Chishimba Kambwili yesterday protested at State House over the government’s delay in finding an investor to take over operations at Luanshya Copper mines (LCM).
Addressing the press, Kambwili said government bureaucracy had prevented him from having an audience with President Rupiah Banda over the closure of LCM. He wondered why the government was taking time to address the problems at LCM when six investors had shown interest in the mine.
"I have tried to see the minister of mines, there is nothing happening,” he said. "In the meantime, the miners, all the K27.7 billion that was sent to Luanshya to pay the miners has gone to service their loans at the bank."
Earlier, Kambwili had his protest placards forcefully taken away from him by police officers. The police officers also chased him from the car park and told him to address the press across the road.
And after addressing the press, Kambwili refused to be taken for questioning by State House staff. The incident happened just after Kambwili had finished addressing the media at the car park outside State House where he staged a one-man protest.
And just as Kambwili was about to drive off, several State House officers sealed off both the entry and exit points of the car park in an attempt to prevent him from leaving.
One of the officers then approached Kambwili and asked him if he had a permit to stage the protest. But Kambwili said he did not need to produce a permit because he had already notified the police about the protest a week ago.
"The law doesn't require me to get a permit, you only have to notify police," Kambwili said, as another officer still insisted that he produce a permit.
As Kambwili was trying to explain himself, another officer, who appeared senior among them all, approached Kambwili and requested him to accompany the officers into State House grounds for questioning.
"This is State House where you are doing your demonstration,” said one of the officers, as Kambwili responded: “State House is part of Zambia. When I get a confirmation from the commanding officer, I do not need to inform you. It’s not my problem if you had breakdowns in communication between you and police."
After the arguments, Kambwili got into his vehicle and drove off.
Labels: CHISHIMBA KAMBWILI, DEMONSTRATION, JOBLOSSES, LCM
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ZCCM-IH to take over LCM only after concluding exit option programme
Written by Kabanda Chulu
Wednesday, February 11, 2009 10:08:39 AM
MINISTER of Mines Maxwell Mwale yesterday said ZCCM-IH will only take over Luanshya Copper Mines (LCM) after concluding the exit option programme with current shareholders.
Last month, President Rupiah Banda disclosed that the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) would temporary take over the mines in Luanshya whilst an investor was being sought.
Giving an update on the progress of the negotiations between the government and the LCM management, Mwale said in Lusaka that the technical committee was making progress to conclude the exit option.
He also disclosed that the government had received expressions of interest from investors from China, United Kingdom and South Africa.
“Actually negotiations have reached advanced stages to conclude the exit option for the current shareholders and that is when ZCCM-IH will take over whilst government looks for an investor but I cannot tell you the time frame but we shall conclude negotiations soon,” said Mwale.
“Also we have received expressions of interest from companies from China, UK, and South Africa that are showing willingness to invest in the Luanshya mines but these are just offers of interest and not actual investment pledges.”
However, some mining experts who preferred anonymity observed that it would take a long time for the government’s technical team to conclude exit option negotiations and consequently look for an investor.
“It will take a very long time because there will be need to evaluate assets to see if they are in good condition and also if there are liabilities such as debts owed by LCM and also there is need to provide viable information to all those that have shown interest and this information should include issues of depth (how to go deep when mining the copper), among other issues,” said the experts.
Luanshya Copper Mines has closed operations and has since been placed under care and maintenance, which has resulted in over 3,000 miners being declared redundant.
Labels: LCM, NATIONALISATION, ZCCM-IH
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