Thursday, November 11, 2010

Luanshya Copper Mines goes on recess

Luanshya Copper Mines goes on recess
By Darious Kapembwa
Thu 11 Nov. 2010, 03:59 CAT

LUANSHYA Copper Mines has gone on a one-and-half-month recess to facilitate rehabilitation of the hoisting system amidst fears of job losses among employees. Company public relations manager Sydney Chileya confirmed in an interview that the mine had been temporarily closed to pave way for the rehabilitation of the outdated hoisting system, which was built in the 1930s.

Chileya said the recess was initially scheduled for July/August 2010 but the equipment primary gear, secondary gear and rope did not get into the country on time.

However, some workers at the mine have received the news with apprehension, fearing that the Chinese owners would take advantage of installation of the new equipment to layoff workers and replace them with expatriate Chinese.

“We are hearing that these guys want to bring in their colleagues in the name of refurbishing the old system and lay off some staff in some departments. So unions will come in to intervene because everyone is aware even if they are saying it is normal, we do not trust them because this rumour of a layoff is quite strong,” one of the workers said.

But Chileya dismissed the fears and insisted that all workers would remain employees of the mine. He said the miners would continue to get their monthly salaries until the mine reopens in January.

“You see that is not true, this mine has four major components, underground operations – the system has been rehabilitated - the cable conveyor belt and the concentrator have all been done and what was remaining was the hoisting system commonly known as Ichikwepe which is obsolete and has been a challenge to move copper from underground to the surface,” Chileya said.

“All the equipment is in and we want to replace it so that we commence normal production by early January and the mine cannot remain operational when this system repair is underway. No one will lose employment. They will continue getting their salaries except for overtime.”

Chileya said underground developments drilling in readiness for blasting would continue during the recess.

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Tuesday, April 13, 2010

‘Luanshya Copper Mines has produced copper valued at $12m since inception’

‘Luanshya Copper Mines has produced copper valued at $12m since inception’
By Zumani Katasefa in Luanshya
Tue 13 Apr. 2010, 04:50 CAT

CHINA Non-Ferrous Mining Cooperation (CNMC) Luanshya Copper Mines (PLC) has produced about 12000 tonnes of copper concentrates valued at approximately US $12 million since its inception.

And chairperson of the parliamentary committee on government assurances Chishimba Kambwili who is also Roan member of parliament has given CNMC Luanshya Copper Mines (PLC) a 30-day ultimatum in which to re-employ all miners who belonged to former owners of the mine.

CNMC Luanshya Copper Mines deputy chief executive director Robert Kamanga told members of the parliamentary committee on Saturday that the company was producing about 2500 tonnes of copper concentrates per month.

Kamanga said at the moment the company was not selling the concentrates but was just stock pilling the produce which contains copper and cobalt.

And CNMC Luanshya Copper Mines head of human relations Loti Chola said the company had employed 1446 ex-Luanshya Company Mine miners, and 661 from service contractors.

“We have also sourced 341 employees from the open market,” he said.

Chola also disclosed that the lowest paid surface workers was getting about K1.2 million while the lowest paid underground worker was getting K1.4 million.

And Kambwili gave management at the Chinese owned mine a 30-day ultimatum in which to employee all the miners who were formerly employed by LCM.

“Mines minister (Maxwell Mwale) had said that all the miners who were employed by LCM would be reemployed by the new investor of this mine except those who are over aged, so as a committee on government assurances we are making a follow up to that. And we are giving you 30-days ultimatum in which to employee these people,” he said.

Kambwili wondered why the new owners of Luanshya mine had not employed the remaining 32 former Luanshya miners.

He wondered why the company had decided to go and source for employees on the open market leaving the workers who previously served at the mine even in view of the government assurance that all former workers would be re-employed.

Kambwili also said that he had received complaints from workers engaged by a Chinese contracting firm, Exploration Mining, contracted by CNMC Luanshya Copper Mines that they were being paid between K180,000 and K350,000 per month.

“So far you (CNMC Luanshya Copper Mines PLC) have given us hope for employing most of the people here, but you should talk to your contractors and advise them on how to pay workers. Some people may not know that Exploration Mine is different from you, they will just think it is a Chinese company and that will paint a bad image about you,” he said.

He said Exploration Mine was also asking workers to provide their own protecting clothing before they could be engaged.

And Mkushi South Constituency member of parliament Sydney Chisanga urged Zambian managers at the mining company not to mislead the Chinese investors.

“Our Zambian technocrats have let us down, you need to advise our investors correctly,” he said.

Meanwhile, National Union of Miners and Allied Workers (NUMAW) Mpatamato branch chairperson Adams Zulu complained of the communication barrier between the Chinese and Zambian workers.

Zulu said it was difficult to communicate with the Chinese as most of the time they were using Chinese.

He disclosed that most of the correspondences at the mine were done in Chinese.

Zulu also said that the Chinese were also not recognising the gazzetted Zambian holidays adding that they had even substituted the Zambians holidays with the Chinese holidays.

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Wednesday, September 23, 2009

Rupiah misleading Zambians, says HH

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”

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Wednesday, August 26, 2009

Luanshya Mine to shed off contractors

Luanshya Mine to shed off contractors
Written by Zumani Katasefa in Luanshya
Wednesday, August 26, 2009 5:10:10 PM

CHINA Non-Ferrous Mining Corporation (CNFC), the new owner of the once troubled Luanshya Mine, has indicated that some contractors will not be given jobs at the mine once it commences production.

Speaking when deputy mines minister Boniface Nkhata visited the mine on Monday, mine underground manager Joseph Chikoti said the idea to do away with some contractors was aimed at maintaining mining standards at the firm.

“We are going to do away with some contractors to ensure that safety and mining standards are kept, we are also going to keep our costs of doing business low,” he said.

Chikoti said some contractors did not follow the mining standards, saying this was very dangerous in mining.

He said the new investor had directly employed some of the workers who were previously working under the contractors.

Chikoti also disclosed that the mine would be able to produce about 5,000 tonnes of ore and 1,500 tonnes of waste per day once production begins.

“By October, we would have done full-fledged development of the mine. We want to maintain steady progress of development, it is critical that we do that,” he said.

Chikoti said the investor was, at the moment, looking at rehabilitating the mine and procuring new machinery as most of the machines left by the previous investors were outdated.

And concentrator manager Venus Kasito said the filtration system at the mine was outdated and without ventilation system.

Kasito also said the five crushers left by the former investor were equally in a bad state.

And Nkatha hoped that the investorís plans about the mine would be fulfilled once it settled down.

Nkatha urged the people of Luanshya to work together with the new investor in Luanshya Mine.

“As government, we are not happy to see people languishing, we want to try our best and see that our people are happy,” said Nkhata.

CNMC has recalled 850 employees who worked under Luanshya Copper Mine (LCM) and directly recruited 200 workers previously employed by a contractor, Armco Prosec.

It is anticipated that 4,000 jobs would be created in Luanshya once production commences at both Baluba and Muliashi mines.

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Thursday, June 25, 2009

Mwale bemoans politicising of Luanshya Copper Mine

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.

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Friday, January 09, 2009

Protesting Luanshya miners demand return of equipment

Protesting Luanshya miners demand return of equipment
Written by Zumani Katasefa, Speedwell Mupuchi and Fridah Zinyama
Friday, January 09, 2009 5:31:51 AM

IRATE Luanshya miners yesterday protested and camped at Luanshya Copper Mine (LCM) general offices demanding the return of the razarbolla, equipment used to drill ventilation holes underground, which was removed by management.

But LCM chief executive officer Derrick Webbstock who confirmed the development said the razarbolla was lent to a Zambian company to do work for NFC Africa Mining.

The miners gathered at LCM offices where they demanded to be addressed by mines minister Maxwell Mwale who visited the mine yesterday.

The miners submitted a petition to Luanshya member of parliament Simon Kachimba who also addressed them, demanding the return of the razarbolla.

They vowed not to move from the LCM offices until the equipment was returned.

The miners on Tuesday tried to block management from removing the razarbolla from underground, but failed to do so.

Yesterday morning, the miners gathered as early as 06:00 hours, demanding that the investor returns the razarbolla equipment removed from Baluba underground mine on Tuesday.

The workers, led by Mineworkers Union of Zambia (MUZ) Luanshya branch officials, said they had suffered a lot and that they would not sit idle and see assets being stripped off by an investor who had abandoned them.

And addressing the workers, Mwale called for an end to asset stripping and directed the Copperbelt provincial police command to deploy more police officers in Luanshya to safeguard mine assets.

“There is asset stripping. It should come to an end,” he said. “People of Luanshya have exhibited ownership of the assets here.”

He said the government was committed to the affairs of Luanshya town and was working hard to find a way forward for LCM.

Mwale added that the government was committed to see to it that Chambishi metals, LCM’s sister company, was reopened.

And Copperbelt minister Mwansa Mbulakulima urged miners not to politicise the problems at the mine.

And MUZ general secretary Oswell Munyenyembe said union officials in Luanshya informed him that the razarbolla was destined for Chambishi.

“But the question is that the mine in Chambishi is not an underground one, so where is this equipment going?” he wondered.

However, Webbstock said the razarbolla machine had been rented to a Zambian company doing works at Chambishi NFC.

“The people will fabricate their own stories over this situation,” said Webbstock. “When it finishes the job, it will be returned [to LCM].”

Webbstock said the razarbolla had since been delivered in Chambishi.

He further called the claims by MUZ that the company was tripping assets from the mine as ‘rubbish and nonsensical’.

‘If the union has something to say, it is better that they come to management and say it than discuss their grievances in the media,” he said.

Webbstock said all the assets were still in place and no one had stripped and sold anything.

But a source within LCM said the shareholders in LCM - BSG and IMR - had mine interests in neighbouring Democratic Republic of Congo where it was rumoured the razarbolla was destined.

“If these people want to leave, they should leave and not leave us in tatters, even worse than they found us,” said the source.

And sources at the troubled mine said some contractors who were engaged for some works had not yet moved out their earth moving equipment from underground despite their contracts being terminated.

Meanwhile, miners have complained that MUZ national leaders on Wednesday summoned the Luanshya branch officials with intent to charge them for issuing statements to the press regarding the problems at LCM without permission from the national leadership.

But Munyenyembe dismissed complaints from the miners saying the meeting at which the branch union officials were called was a routine one.

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Wednesday, March 12, 2008

Fr Muntunu calls for probe into LCM's removal of mining winders

Fr Muntunu calls for probe into LCM's removal of mining winders
By Zumani Katasefa
Wednesday March 12, 2008 [03:00]

FATHER Cletus Muntunu of Martyrs of Uganda Parish in Luanshya has urged the government to probe Luanshya Copper Mines (LCM) over the mining winders it is currently dismantling and selling as scrap metal. But LCM chief operating officer James Bethel said the government was aware about the removal of the winders by his firm. Fr Muntunu expressed fear that the dismantling of the winders from 14, 18, and 28 mine shafts by LCM clearly showed that the mine would never be utilised.

"The hope of Luanshya predominately lies in mining, but LCM has dismantled the winders at these three shafts and yet they are talking about creating 400 jobs to the people of Luanshya, how are they going to create these jobs," Fr Muntunu wondered.

He said the winders were being sold as scrap metal to countries like South Africa .
He said 14, 18 and 28 shafts could be rejuvenated and be given to different investors who could put them to good use and create employment for many unemployed youths of Luanshya.

He said although Baluba Mine and Miliashi would help to reduce unemployment levels, it was cardinal for government to preserve the future of the three shafts for economic benefits of Luanshya residents and the national as whole.

"By dismantling the three shafts, LCM is greatly disadvantaging the people of Luanshya whose lives solely depend on mining for their livelihood; it is therefore cardinal for government to probe this company," said Fr Muntunu.

And some concerned LCM workers and local branch Mine Workers Union (MUZ) officials who declined to be named threatened that if the government would not stop LCM from dismantling the winders, they would mobilise Luanshya residents to demonstration to force LCM to stop removing the equipment.

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Tuesday, January 22, 2008

Power outage costs LCM $100m

Power outage costs LCM $100m
By Zumani Katasefa and Joan Chirwa
Tuesday January 22, 2008 [03:00]

LUANSHYA Copper Mines (LCM) has recorded a loss of about US $100 million following Saturday's power outage, chief operations officer James Bethel has said. And Economics Association of Zambia (EAZ) national secretary Chibamba Kanyama said the government should critically look at unbundling Zesco and allow serious investors to partner with the company in power generation and transmission.

Commenting on the almost seven-hour countrywide power outage last Saturday, Bethel said the company had its crusher motors damaged.

He said it would cost the company between US $3,000 and US $4,000 to replace the motors.

Bethel, however, explained that LCM used its backup power to evacuate miners from underground. He said the situation at the mine had normalised.

A check at Roan General Hospital on Saturday night found patients being attended to using candles as the hospital had no standby generators.

Luanshya member of parliament, Jean Phiri, described the situation as very sad and urged the Ministry of Health to ensure that hospitals in the district were supplied with standby generators.

Sources yesterday disclosed that Saturday’s power outage was caused by the collapse of the Leopards Hill - Kariba North Bank high voltage line that has been under maintenance for over two weeks.

The sources said Saturday’s power outage was very serious, as Zesco was currently struggling to have its Leopards Hill - Kariba North Bank high voltage line restored.

Zesco managing director, Rhodnie Sisala, on Sunday explained that the company was working round the clock to restore the 330 KV Leopards Hill - Kariba North Bank Line which collapsed due to heavy rains experienced last December.

Sisala said the collapse of the Zambian high voltage network also extensively affected the inter-connector system among Zambia, Zimbabwe and Botswana making it practically impossible for Zesco to import power from neighbouring countries.

Meanwhile, Kanyama said having major players in generation, distribution and transmission of power would reduce dependence on one source for electricity and subsequently check the frequent power outages.

“Government has allowed entry into the energy sector but there is nothing to do with the break-up of Zesco Limited,” Kanyama said. “With an increase in tariffs for the electricity sector, this is the right time for the government to have an aggressive marketing drive and target potential investors in the sector.”

Kanyama said Zesco Limited could remain a holding company representing government interests in the operations even after inviting a partner into the undertaking.

“Even after having a partner in Zesco, other investors are also needed to set up power generation plants so that there can be competition in the energy sector,” Kanyama said.

But energy and water development minister Kenneth Konga said the government had no power to direct Zesco on partnerships.

“The Energy Act which was recently passed allows for more investments in the energy sector, but in terms of having a partner for Zesco, only the board can make such a decision since it supervises the operations of Zesco’s management,” Konga said.

Commerce minister Felix Mutati said the government would focus on strengthening the Zambia - DRC and Zambia - Tanzania power inter-connectors.

“Strengthening of the inter-connectors with other countries is very key in improving the supply of electricity in the country,” Mutati said.

“In terms of generation, Zesco has already partnered with foreign companies such as Sino Hydro and Tata under its major projects that will raise the company’s total generation capacity in line with the growth in demand for electricity.”

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