Chinese at Maamba mine stay indoor
By Edwin Mbulo, Mwala Kalaluka and Gift Chanda
Wed 08 Aug. 2012, 11:30 CAT
OVER 30 Chinese nationals working for Maamba Collum Coal mine in Sinazeze have decided to lock themselves up in the mine quarters for fear of being attacked by Zambians.
And several Zambian mine workers have deserted Sinazeze fearing they might be arrested following the killing of a Chinese national during a minimum wage protest.
In Lusaka, police yesterday stopped a minimum wage-related protest by workers of a Chinese firm contracted by the government to construct prefabricated quarters for ZAF officers in Lusaka's Twin Palm area.
In an interview, Nkandabbwe Ward Councilor Partson Mangunje said the barbaric killing of the Chinese national by protesting miners had caused a vicious circle of economic breakdown.
"It is not only the Zambians who are scared of going back for work, the Chinese are also afraid and are spending most of their times locked up in the quarters since the incident happened. I appeal to the government to send in a negotiator to talk to the two groups; the Zambians and Chinese so that we can bury what has happened and forge ahead," he said.
Mangunje however said there was need for the employers to be serious when engaging workers because most of the people employed in the mines were those that could neither neither read nor write.
"We now have a situation of people who can't read and understand the contracts and what happened was that they ended up acting on group influence. We need a minimum of a Grade Seven full certificate as a qualification for one to be employed in the mines," he said.
Mangunje appealed for more dialogue so that a similar situation could be avoided in future.
And a union representative Moddy Chigonke said the union had failed to meet the mine workers for them to resume work because most of their whereabouts were not known as they had deserted Sinazeze for fear of being arrested.
Meanwhile, a check by The Post at shaft one, two, and six found the place quiet as the mines were deserted and only security personnel were at the gate.
And a miner who sought anonymity said police arrested the mother and wife of a miner who was on the run, only identified as Cephas.
He said they were picked up at 11:00 hours, but when contacted for a comment, Southern Province deputy police commissioner Fred Mutondo said the only woman picked up was treated as a witness and had since been released.
He said he was not informed of any arrests that could have been made afterwards.
"We picked up a woman yesterday (Monday) after she was found with goods that were looted from the deceased Chinese's house and she confessed that her husband is the one who took the goods to the house. The man later handed himself to the police and is detained in Choma," he said.
Some residents have expressed disappointment with the mine management for not putting in place a sound human resources management policy.
And Lusaka Province police commissioner Solomon Jere said some anti-riot officers were sent to the site and the workers that were about to protest were told not to because they had not complied with
the law.
"They were advised the law must be followed. We have got a system of laws in place," said Jere. "If they want to do, maybe, a demonstration there is supposed to be a procedure to be followed. A
notification, that is what the law provides but they did not do that. They obliged and everything is back to normal."
Police sources told The Post that some of the Chinese that were at the site when the ill-fated protest was about to commence locked themselves for fear that the workers who were about 200 would harass them.
"The workers started protesting at around 07:30 hours and they were demanding for the minimum wage from the Chinese. The Chinese have a contract with the government to construct the ZAF quarters," the
source said.
The sources said since the workers work in shifts, those that were supposed to work the day shift were not working but that later some Chinese managers came to address them.
And the Southern Province police command says it will not rest until all the people behind the killing of a 50-year-old Chinese supervisor at
Sinazeze's Collum Coal Mine over a wage dispute are caught.
Southern Province deputy police commissioner Fred Mutondo said in an interview yesterday that the 12 suspects picked and charged in connection with Wu Shengzai would appear in a Choma court today.
Wu died instantly after an irate mob protesting over the recently revised minimum wage pushed a trolley that is used to carry coal from the pit into the tunnel where he attempted to hide.
Sources said the 12 suspects left Sinazongwe for Choma at around 12:00 hours yesterday afternoon but that the remnant Chinese work force at Collum Coal Mine had barricaded themselves from the locals.
"There are still about twelve suspects; eight miners and four local people," said Mutondo. "It investigation is still ongoing. We will not rest until all of them suspects are captured."
And the government has assured foreign investors in the country, including the Chinese community, that Zambia was a safe and secure investment haven for them.
Information and broadcasting minister Kennedy Sakeni stated in a press release yesterday that the government regrets Wu's death and he described the incident as unfortunate, uncalled for and uncharacteristic of Zambians' peaceful and hospitable nature.
"Government wishes to assure the Chinese community at Collum Coal Mine, and investors at large, that Zambia is safe and secure for themselves and their investment," Sakeni stated. "In this regard, the government will endeavour to provide a safe and secure environment within which all investors will operate by ensuring, among other interventions, that incidents of this nature do not recur."
Sakeni, who urged employers in the country to embrace dialogue in
resolving their differences, said the government was confident police
would carry out thorough investigations on the Collum incident to
ensure culprits are brought to book.
However, economic consultant Prof Oliver Saasa said in his comments over the Collum incident that Chinese investors may not be the only
ones threatened by Zambia's current investment climate.
In an interview yesterday, Prof Saasa, who regretted Wu's killing,
said the unfortunate incident should be a lesson to the country to
ensure a certain level of consultation prevails before certain
decisions are taken.
"The issue of the minimum wage is an important issue in a country
like Zambia where poverty levels are very high and salaries for those
low earners can actually be up scaled in light of the economic growth
posted in the last 10 years," Prof Saasa said.
He said the issues of the minimum wage should have been handled
carefully to prevent incidents like the one at Collum Coal Mine as
they dent the country's image and also impact on the country's
investment climate.
"Sometimes people reject something that is in their interest because
you failed to accommodate them at the level of making that decision,"
Prof Saasa said. "The Statutory Instrument just came and it was
quickly implemented. So you run into these problems."
Prof Saasa said the environment where foreigners come to invest matters.
"We need to take a leaf from what has happened at Collum coal mine
and do things right. We keep reminding people that the world out
there has a lot of opportunities and that it is not just Zambia where
people can take their money," said Prof Saasa.
"You should not allow a situation where workers take the law in their
hands especially if they are killing as a result of the
misinterpretation of poorly communicated decisions by the government."
Chinese Ambassador to Zambia Zhou Yuxian told The Post on Monday that
Chinese in the country were frightened following Wu's killing and they had
asked to meet him on the evening of that day so that they could be consoled.
Collum Coal Mine has had a number of operational problems.
Mine officials at Collum had blocked the then Southern Province minister Alice Simango from going to check the poor working conditions.
In October 2010, police charged two Chinese mine managers with attempted murder after they allegedly opened fire on a group of miners at the same mine.
At least 11 workers were injured in the incident at the mine.
The owners were reported to have felt threatened by the miners during a protest about their pay and conditions.
The case had brought an angry reaction in a country where Chinese businesses have invested heavily.
The miners had been protesting against poor working conditions at the Collum mine when the managers opened fire at random.
The cases against the duo were later dropped through a nolle prosequi.
China has invested more than $400m in Zambia's mining industry and Chinese investments in the country are continuing to grow.
But this has led to rising tensions in some areas and complaints that the government is prioritising Chinese investment over workers' rights.
Labels: LABOUR, MAAMBA COLLIERY, MINING
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Government to increase stake in mines
By Gift Chanda in Sinazongwe
Wed 01 Feb. 2012, 14:01 CAT
THE
Zambian government says it will not nationalise mines but instead increase its stake to about 35 per cent. Mines minister Wylbur Simuusa said the government wanted Zambian participation in the mining industry to increase.
Speaking when he toured Maamba Collieries mine on Monday, Simuusa said most governments globally were currently considering raising their stake in mining companies to about 35 per cent and the Zambian government would want to take that step too.
Simuusa noted that, through the state mining-investment company, Zambia Consolidated Copper Mines -Investment Holdings (ZCCM-IH), Zambia currently owns less shares in mining companies thereby limiting proper supervision of the mining companies.
Currently, ZCCM-IH holds between 10 and 20 per cent of major mine projects across the country and Zambia has been exerting ore control on mineral exports.
"In the previous regime, it was very clear that the mining sector was not being properly supervised and I know that is one thing that undid the previous regime," Simuusa said.
"In this new government we want the mining sector to be properly supervised …in fact, we know that the key to turning this nation around is in our mineral resources. One of the measures we want to take as PF government is to increase Zambian participation in our mining industry…we are not going to nationalise the mines but we would want to increase our participation."
Government recently said it was considering buying a stake in the financially troubled Munali Nickel Mine were it currently owns 0.97 per cent.
"It is sad that Zambia being so richly endowed in mineral resources, we have got copper and high grade coal yet we are ranked among the 20 poorest countries in the world. That is quiet unfortunate and as the PF government, we want to turn this around," Simuusa said.
He further called on mining company owners to ensure that preference was given to local suppliers of goods and services to the mines. He said that was the only way the mining companies would be helping the government create more jobs for Zambians.
And Simuusa commended Singapore's Nava Bharat Pte , the majority owners of Maamba Collieries, for awarding salary increments to workers at the country's largest coal producer.
He said it was cardinal that benefits from the mining companies started accruing right with the miners. Earlier, Nava Bharat Private Limited chief executive officer, Ashwin Devineni said works on setting up the new coal handling processing plant in time for the resumption of full-scale mining activities and sell of high grade coal in March, were on course.
Nava Bharat acquired a 65 per cent stake in Maamba in 2009 and planned to spend U$108 million on modernising the mine.
The new mine, which was expected to produce 360,000 tonnes of coal in its first year, aims to reach a maximum output capacity of 2 million tonnes per year.
It also expects to ramp up the washed coal sales from about 30,000 tonnes a month to about 50,000 tonnes by 2013.
Labels: MAAMBA COLLIERY, MINING, WYLBUR SIMUUSA, ZCCM-IH
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Maamba Collieries hopes to hit high gear by March
By Gift Chanda in Sinazongwe
Mon 09 Jan. 2012, 13:49 CAT
MAAMBA Collieries sees full-scale mining activities and sale of high-grade coal commencing by March this year, says company chief operating officer Gurram Narayana.
Narayana said full-scale operations at Zambia's largest coal producer, which is majority
owned by Singapore's Nava Bharat Pte, have delayed commencing due to the new Coal Handling and Processing Plant (CHPP) which is yet to be erected.
He said partial mining activity, however, had commenced but operations are only expected to be ramped up by March when the CHPP is fully operational and commissioned.
"We see full-scale mining operations and sales of high grade coal which was suspended about three years ago only resuming by March," said Narayana on Friday when mines safety director Mooya Lumamba toured the mine.
Initially, operations at Maamba Collieries were expected to start by the end of July 2011.
The new mine, which is expected to produce 360,000 tonnes of coal in its first year, aims to reach a maximum output capacity of two million tonnes per year eventually.
It also expects to ramp up the washed coal sales from about 30,000 tonnes a month to about 50,000 tonnes by 2013.
"We should have had the CHPP up by now and the mine running at full-scale but there was a problem shipping in the contractor's equipment," Narayana explained.
Maamba Collieries, once a key supplier of coal to the country's copper mines, produced about 600,000 tonnes of coal per year in the 1980s, but production slumped due to years of under-capitalisation and operational losses.
Nava Bharat acquired a 65 per cent stake in Maamba in 2009 and planned to spend U$108 million on modernising the mine.
The state, through Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH), owns 35 per cent of the Maamba mine.
"We started revival activities in April 2010 and Nava Bharat has to date injected US $50 million into the company," Narayana said.
He further disclosed that the construction of phase one of the 600 megawatt (MW) coal-fired power plant at the mine was still awaiting environmental approval from the Zambia Environmental Management Agency (ZEMA).
"We have made a lot of progress with regard to the power plant but we haven't been able to start the construction because we are still waiting for the EIA to be approved," he said. "Once that is done, we will move quickly."
Narayana said the company was considering raising the power plant's capacity from 600 mega watts to 900 mega watts due to the growing power demand in the country.
And Lumamba pledged government's support towards the construction of the thermal power plant.
Lumamba said the plant was necessary as it would ease pressure on power demand in the country.
Labels: MAAMBA COLLIERY
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Maamba Collieries houses were long sold, says ex-MD
By Patson Chilemba
Wed 13 July 2011, 12:01 CAT
RUPIAH Banda is not sincere about the 838 Maamba Collieries’ former houses because they were already sold, according to Nchanga member of parliament Wylbur Simuusa.
Commenting on President Banda’s recent announcement of the sale of the houses to residents pegged between K300,000 and K4 million, Simuusa, who served as Maamba Collieries managing director from 2004 to 2007, said the announcement was interesting.
“That time I was there houses were already sold. I even had accommodation problems for my new staff because when I was taken to run the mine I needed to incorporate new members with the old ones. They were coming from Lusaka, Chingola and other operations,” said Simuusa in an interview yesterday.
“We had problems finding accommodation and we even had to rent houses for miners because they houses had bought them already. So which houses is the President talking about which were not sold? He needs to be very clear.”
Simuusa said Maamba Collieries houses were sold along with other mine houses in several parts of the country during late president Frederick Chiluba’s tenure.
“What he should say is the title deeds had not been issued.
It’s been a campaign gimmick that when they delay title deeds then every time there is an election they will come with title deeds and sing a song of houses.
Even here in Chingola title deeds have not been issued since 1997,” Simuusa said.
“The President’s announcement was like he was selling mine houses between K300,000 and K4 million. Let him not use the old tired tricks. Let him clarify, which houses because as far as 2004 when I was there those houses were already sold.”
Simuusa said President Banda should not even boast about finally selling Maamba Collieries because the process to do so had already been embarked on before he became President.
He said there was a decision when he served at the company that Maamba, the only coal mine in the nation, be kept under Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), by retaining 35 per cent shareholding and offloading 65 per cent.
President Banda last Friday announced the sale of houses belonging to Maamba Collieries at a rally at Kazinze Stadium in Maamba.
Labels: CORRUPTION, HOUSING, LYING, MAAMBA COLLIERY, RUPIAH BANDA
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Maamba demands real issues from Kunda
By George Zulu in Maamba
Sat 15 Jan. 2011, 04:01 CAT
MAAMBA residents on Friday demanded that Vice-President George Kunda address real issues affecting their wellbeing as opposed to preaching tribalism.
During a rally at Kanzinze grounds, the residents made running commentaries as Vice-President Kunda (right) talked about PF leader Michael Sata and the UPND-PF pact. Vice-President Kunda described Sata as a tribalist who did not believe in the One Zambia, One Nation and could not unite the country.
“Don’t allow Cobra Sata … to cheat you that they will unite this nation. Where have you seen Sata working with other tribes? This man has hatred for Tongas. He cannot work with you Tongas. He is a tribalist,” Vice-President Kunda said.
As Vice-President Kunda said this, some residents were heard saying the Vice-President was instead promoting tribalism.
One of the residents, from the crowd, demanded that Vice-President Kunda explain the unfair retrenchment of workers at Maamba Coal Mine and the package instead of talking about Kariba North Bank, which was of no interest to them.
“Let him tell us what will happen to the retrenched miners. Let him tell us what government will do about the looming displacement of the people because of the planned construction of a water pipe from Kariba to Maamba by Bharati investors not shouting and insulting Sata…,” another resident said.
The shouts from the crowd caused panic among security personnel and police started trying to identify the culprits.
However, Vice-President Kunda said the MMD would rehabilitate the Bottom Road because it was important.
Earlier, former Namwala District commissioner Eunice Nawa, Mbabala MMD Constituency chairman Chileshe Mwamba, former Sinazongwe MMD District chairman Foster Siapwaya, Kazungula MMD chairperson Malumo and other branch and ward officials were forced out of the meeting at Izuma Lodge on the basis that they were Bemba and Lozi.
Sinazongwe District MMD chairman Dodo Sindaza directed that all those who do not hail from the province should not attend the meeting with the Vice-President.
Sindaza ordered his youth wing not to allow anyone not in support of the sole candidature of Vice-President Kunda and President Rupiah Banda.
The officials said President Banda should not allow tribalism, which the party would not handle.
However, the officials who were barred from entering the closed-door meeting, said Vice-President Kunda had messed up the 2011 presidential campaigns for President Banda by promoting lawlessness, hatred and tribalism.
“We are very surprised that we have been stopped from entering the meeting on the basis that we are not Tongas and we don’t hail from here,” said the one of the angry officials.
One of the officials, Mwamba refused to comment on the matter, saying only God and time would tell the conduct of party officials.
Labels: GEORGE KUNDA, MAAMBA COLLIERY, TRIBALISM
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Govt, Maamba Collieries new owners work to liquidate debt
By Namatama Mundia
Sat 30 Jan. 2010, 04:00 CAT
GOVERNMENT is currently holding negotiations with Nava Bharat, the new owners of Maamba Collieries, aimed at liquidating the debt owed to the mine employees. Responding to parliamentary committee on government assurances chairperson Roan member of parliament Chishimba Kambwili who wanted to know if Nava Bharat of Singapore (NBS) Private Limited were ready to pay the employees, mines ministry permanent secretary Dr Godwin Beene said his ministry was negotiating with the Singaporean company on the debt.
“I am informed that there are negotiations going on the matter. I am told that it will be taken care of,” he said.
Dr Beene said Nava Bharat was well aware of the status of Maamba Collieries.
He said the issue of employees’ indebtedness could be regressive if not well handled.
And Dr Beene submitted that the creditors of Maamba Collieries Limited (MCL) agreed to a 75 per cent discount on all the debt that MCL owed them.
“The scheme of arrangement to write off 75 per cent of debt owed was sanctioned by the High Court on 27 December 2007,” he said. “ZCCM-IH funded the scheme of arrangement and the same was implemented in January 2008.”
Dr Beene added that the sale and purchase agreement for the sale of 65 per cent shares of MCL to NBS was signed by the government, ZCCM-IH and NBS on December 18, 2009.
He said the new owners of MCL were expected to recapitalise the coal mine and develop a new Thermal Power Plant and both projects were to be financed by debt equity.
Dr Beene also said the government was pressing Konkola Copper Mines (KCM) to consider opening the Nkana smelter.
“Government has engaged KCM management to look at this issue from a national level to re-open the smelter. This will require massive capital injection to modernise the smelter and make the operations cost effective,” he said.
Dr Beene said there was great urgency to bring back to operation the shut down Nkana smelter in order to ensure that all concentrates produced in the country were smelted and refined within the country.
Dr Beene disclosed that KCM was looking at the option of partnering with other investors to recapitalise the smelter.
“Government will ensure that the negotiation with KCM management result into re-opening of the smelter before 2011,” he said.
Dr Beene attributed the slow pace of geological mapping of the country to the shortage of geologists at the Geologists Survey Department.
Labels: GODFREY BEENE, MAAMBA COLLIERY, NAVA BHARAT VENTURES
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MUZ cautions Maamba mine over retrenchments
By Chiwoyu Sinyangwe
Mon 21 Dec. 2009, 04:00 CAT
THERE will be no justification for new owners of Maamba Collieries Limited (MCL) to lay off any workers, Mine Workers Union of Zambia (MUZ) secretary general Oswell Munyenyembe has said.
And Ashok Devineni, chairman of Nava Bharat said new owners of MCL have no intentions to retrench any workers but said the Singaporean company will have to evaluate the skills ability of the workers to cope with new developments at the coal mine.
Nava Bharat, the diversified Singaporean investment company which now holds 65 per cent shareholding in MCL, plans to pump about US $550 million in revamping operations of the country’s biggest coal mine and simultaneously build a 300 megawatts thermal power station in the next three years.
Commenting on the development which is likely to give life to struggling Maamba miners who sometimes have been subjected to three months without pay, Munyenyembe said MUZ expected Nava Bharat to employ more workers in view of the increased business activities.
Munyenyembe said MUZ welcomed the government’s decision to sale MCL.
“Our appeal to the new investors is that they should come and respect the laws of this country,” Munyenyembe said. “Yes they are bringing in money and we are providing labour.”
He also thanked the workers at the mine for the patience exhibited during the time when the firm was closed.
Munyenyembe appealed to Nava Bharat to be open to its workers and disclose to them what was in the agreement.
“…They are opening up the thermal plant and we need more workers…so we see no justification for the issue of retrenchment and today we are saying…people who are put on separation should be paid all their terminal benefits,” said Munyenyembe.
And Devineni said Nava Bharat had no intentions of retrenching any of the MCL workers.
“We would first of all analyse the skill services available there (at MCL) and put a lot of those who do not find place in the current work atmosphere in a training programme,” Devineni said. “But there is no plan as such to retrench any body.”
Devineni said Nava Bharat was known for corporate governance and corporate social responsibility, management protection and cordial industrial relations at all its operating units.
“We wish to emulate similar corporate philosophy and value systems in Zambia too,” said Devineni. “…This is the beginning of our journey in Zambia and we hope to play an important role in the development of Zambian economy.”
Maamba mine aims to reach maximum output capacity of two million tonnes of coal per year in the long term. It has 78 million tonnes of known coal reserves expected to last over 70 years and it produced 600,000 tonnes coal during peak production in the 1980s.
Labels: MAAMBA COLLIERY, MUZ, OSWELL MUNYENYEMBE
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Govt sells Maamba Collieries Limited
By Chiwoyu Sinyangwe
Sat 19 Dec. 2009, 04:01 CAT
GOVERNMENT has sold 65 per cent of Maamba Collieries Limited (MCL) to Nava Bharat as the Singaporean company pledges to invest over US $510 million to revamp operations and build 300 megawatts thermal power station.
Maamba Collieries Limited, which is estimated to have a capacity of two million tonnes of washed coal per annum is expected to start operating on March 1, 2010 after the new investors, Nava Bharat, completes the financial closure.
According to the terms of the deal, Nava Bharat would pay ZCCM-Investment Holdings (ZCCM-IH) US $26 million for the shares while the government would return 35 per cent shares and a Golden Share to ensure Maamba Collieries continued to develop.
“It should however be noted that because liabilities of Maamba Collieries have been increasing, the actual consideration payable to government through ZCCM–IH will be determined by the outcome of the completion audit to be finalised by mid-January,” finance minister Dr Situmbeko Musokotwane told a press briefing yesterday.
Dr Musokotwane said since Maamba Collieries was currently insolvent owing to huge debt, which was estimated at over US $50 million, the government would no longer be directly responsible for the liability.
He said Maamba itself and Nava Bharat management working with ZCCM–IH would work towards liquidating the indebtedness once the company’s cash flows improved.
Dr Musokotwane said the government was also looking at listing 25 per cent Maamba Collieries shares to the Zambian public through the Lusaka Stock Exchange.
He did not indicate the timeframe but stressed that both Nava Bharat and government would downsize their shareholding although the significant portion of the equity to be listed would come from the government.
Dr Musokotwane said mine redevelopment is estimated to cost US $93 million and further development of upstream project, 300 megawatts thermal power station would cost estimated US $420 million.
And Nava Bharat chairman Ashok Devinemi said over US $510 million needed to develop the mine would be sourced through debt finance and equity through the Nava Bharat.
Devinemi said Nava Bharat would need two years to bring the mine to the capacity of two million tonnes of washed coal.
Nava Bharat would develop the power plant at Maamba and it would be fed to the main national power transmission line through Zesco.
Labels: MAAMBA COLLIERY, NAVA BHARAT VENTURES
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Maamba Collieries retrenchees ask government for relief food
By Tovin Ngombe in Maamba
Sun 13 Dec. 2009, 04:00 CAT
MAAMBA Collieries retrenchees in Sinazongwe district have appealed for relief food from the government before they die of starvation.
The retrenchees have requested the District Disaster management Committee (DDMC) to assist them in acquiring relied food since the government had taken long to pay them their packages.
Sinazongwe district administrative officer Sokoloku Daka told the DDMC meeting on Friday that the disaster management committee under the office of the Vice President would be informed of the development in Maamba to assist the starving families.
A team of officers from the DDMC that carried out a mission to ascertain the level of vulnerability among the retrenched workers in Maamba Township revealed in their report during a meeting at council chambers that government should pay the retrenched workers to save them from starvation.
The team discovered that most of the retrenchees were surviving through the sale of mangoes and that Maamba Collieries, their former employers could also not assist them because the mine was also undergoing financial difficulties.
The team has recommended that the government should give them relief food while their issue of retrenchment package was being addressed.
The 187 retrenched workers last received K2 million, each two years ago, and they have been having difficulties in sending their children to schools.
Maamba ward councillor Peter Siavulwe, who is also a retrenchee said the retrenched workers would meet on January 15 next year at the High Court in Lusaka to calculate the money that government owes them as salaries.
He said they were supposed to be on a salary until government paid them their full package but it was not done and they were being paid small amounts for the past 10 years.
Siavulwe said from 2000, government had failed to pay their retrenchment packaged in full.
Labels: MAAMBA COLLIERY
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‘Govt has obligation to create conducive business environment’
Written by Nchima Nchito Jr
Tuesday, October 06, 2009 7:40:19 AM
ECONOMIC consultant Professor Oliver Saasa has advised the government to be wary of creating a wrong investment climate in the country.
Commenting on the problems at Maamba Collieries, which have led to operations grounding to a halt, Prof Saasa yesterday said the government had an obligation to create a conducive business environment. He said it was wrong for the government to appear to be part of the problem and not a source of solution.
“Our local investors operate without incentives given for attracting FDI [Foreign Direct Investment]. Hence it is sad when a local investor shows interest in a key mine and those efforts are frustrated,” Prof Saasa said.
He said the cost of the closure of Maamba mine had far reaching consequences than the affected employees.
“We do not want the development of another ghost town again. What happened to Luanshya after the close of the mines was a terrible thing that should not repeat itself,” he said.
Prof Saasa said while commerce minister Felix Mutati emphasized the need to reduce the cost of business and attract investments into the country, the happenings at Maamba mine negated these efforts as a wrong picture was being painted even to foreign investors.
Efforts to reach mines minister Maxwell Mwale and Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) chief executive proved futile by press time.
Operations at Maamba Collieries ground to a halt after its main contactor Oriental Quarries terminated its contract.
In an interview last Friday, Scirocco Enterprises Limited managing director Maustafa Saadi confirmed the development.
Scirocco Enterprises is the holding company of Oriental Quarries.
“We as of 1st October terminated all mining activities because of the mine’s failure to honor its financial obligations to us and have given them 30 days notice. We entered into a contact with the mine in December last year and in that period the mine has not been paying us our dues,” he said.
Asked on how much Oriental Quarries had invested into the mine, Saadi pegged the figure at approximately US $7million.
Saadi said a lot of work went into resuming operations at Maamba mine.
“Our trucks and other machinery are stationed there. In addition we have a workforce of 150 people who are based there. Also, we had to lease some equipment from various suppliers. All these are financial obligations that we have to meet but we are having problems doing so because we are owed a lot of money that Maamba is not paying,” Saadi said. “Even as we speak, machinery meant for the mine has arrived in Durban that we will have to pay for. The failure of Maamba to meet its financial obligations has jeopardized our continued operations as a quarry.”
Saadi said Oriental had mined 100,000 tonnes of coal to date but only 5,000 tonnes had been sold.
Saadi said his company had on several occasions contacted ZCCM-IH over the matter but no action had been taken to resolve the situation.
“We have since contacted our lawyers to notify the mine that we have started demobilizing and will completely vacate the mine on the expiry of the notice and begin the process of getting a settlement which will include damages and losses,” Saadi said.
On the contrary, Mwale told Parliament last Friday that coal production had continued uninterrupted leading to the production of 88,955 tonnes at the mine since April.
In a ministerial statement, Mwale said Maamba had on site 40,000 tonnes of washed coal, which was equivalent to K16 billion as well as 8,000 tonnes of raw coal equivalent to K3 billion.
Mwale said US $5.3 million had been spent on reviving the Maamba mine contrary to speculation that the money had disappeared.
Mwale also dispelled assertions that there was no political will on the part of the government to improve operations at the mine.
ZCCM-IH acquired 100 per cent shareholding in Maamba Collieries but the government retained a golden share with rights to appoint a director to sit on the board.
The company earlier this year appointed Nava Bharat of Singapore to operate Maamba Collieries and construct a thermal power station at the mine, beating Konkola Copper Mines (KCM)’s parent company Vedanta Resources.
Maamba Collieries is estimated to have 78 million tonnes of known coal reserves due to last over 70 years while the coal mine has capacity to produce up to one million tonnes of coal a year.
Labels: MAAMBA COLLIERY, OLIVER SAASA
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Miners down tools and demand salary arrears
Tuesday, September 29, 2009, 16:34
Maamba Collieries (MCL) miners have downed tools demanding payment of their four months salary arrears. Speaking during a meeting with the Mineworkers Union of Zambia (MUZ) representatives outside the MCL offices the workers who sought anonymity declared that they would only resume work once management has paid them their four months salary arrears.
The workers said the memo that management wrote to them indicated that the sales of coal has improved yet the company has failed to pay them their salary arrears and Oriental Quarries the contractor that was mining coal on behalf of MCL.
They charged that MCL Managing Director Stephen Mutambo has failed to address the pressing issues that were affecting workers.
The issues included the payment of two salary arrears within two weeks last month that management failed to honour, the firing of the company’s Human resource manager Mr Simwele for being insensitive to the workers plights.
Mr. Mutambo is alleged to have told the workers that Mr Simwale had given up his position when he in fact was still working from MCL’s Lusaka office.
The workers lamented that their families were starving a situation that made them ashamed to be called miners in the township.
They demanded that government should also constitute a team of ministers to look into the problems affecting MCL as was the case with other ailing mines in Luanshya and Albidon Nickel mine in Mazabuka.
The workers also wondered why the Zambia Consolidated Cooper Mine Investment Holding (ZCCM-IH) has pulled out when government gave them 100 percent shares to run the mine.
MUZ Secretary for Maamba condemned the ZCCM-IH decision to pull out from supporting the mine when they have invested a lot of money in the Company.
Maamba Union Chairperson Evans Moyo assured the workers that he would present their grievances to the MCL management.
MCL Head of industrial relations and Administration Jethro Sikalunda urged workers management time to look into their grievances.
ZANIS
Labels: MAAMBA COLLIERY, MINERS, MUZ, STEPHEN MUTAMBO
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Don’t panic MP tells miners
Monday, September 14, 2009, 21:09
Sinazongwe Member Parliament (MP) Raphael Muyanda has assured miners at Maamba Collieries that Government would soon intervene in their plight. Workers at the coal mine have had no salary for the last four months.
Mr. Muyanda told the workers at a meeting in Maamba that President Rupiah Banda has promised that government would pay the Maamba Collieries (MCL) workers who have not been getting their salaries for four months now.
He told the workers that during a meeting he held with President, he expressed sadness at the failure by Management to pay the workers their salaries.
Mr. Muyanda called on the workers to be patient as government was trying to address their plight.
“Money is coming and the President has promised to sort out the matter through his Economic Advisor,” Mr. Muyanda said.
Mr. Muyanda said he it pains him when the miners were starving, failing to send their children to School, and paying for their rentals. The MP called on management to work hard and ensure that the thousands of tones of coal that were still heaped at their plant were quickly sold.
Mr. Muyanda said he would not hesitate to move a motion in parliament to have the management at MCL removed from their positions if they continued being showing signs of incompetence.
“They must take this issue seriously if they want to keep their jobs,” he said.
He said coal has market within the country and other countries such as Malawi, Burundi and the Democratic Republic of Congo.
ZANIS
Labels: MAAMBA COLLIERY, MINERS, RAPHAEL MUYANDA, SALARIES
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Lafarge Cement follows developments at Maamba Collieries
Written by Kabanda Chulu
Wednesday, July 29, 2009 3:09:58 PM
LAFARGE Cement Zambia chairman Muna Hantuba has said the company is following with interest the developments at Maamba Collieries so that its full production can result in availability of local materials for cement production.
Last week, mines minister Maxwell Mwale, without being specific, announced that the Zambia Development Agency (ZDA) was currently negotiating with a preferred strategic equity partner, Nava Bharat Ventures of Singapore, for Maamba Coal mines and a thermal power plant.
When asked why the company prefers to buy materials from outside the country, Hantuba said there must be consistency in the supply of raw materials to avoid shortages that could affect plant machinery. He said the company was looking forward to work with Maamba Collieries Limited once it attained full production.
“If Maamba comes on stream it will avail us the opportunity to purchase local raw materials. In fact we will prefer to source materials locally in order to cut down on costs of transportation,” Hantuba said.
“But we do not want to disrupt running contracts with foreign suppliers especially that now the plant is huge and it is consuming large quantities of materials and we do not want to experience problems in case there is a shortage of materials.”
Due to the inadequacy and inconsistency in supplies from Maamba Collieries Limited and other smaller Zambian coal mines, Lafarge Cement Zambia has entered into long-term contracts with Hwange Coal Mines of Zimbabwe to ensure continued supplies of raw materials.
The Zambian government wholly owns Maamba Collieries Limited through its subsidiary company, ZCCM Investment Holdings (ZCCM-IH) and negotiations have been ongoing with a preferred bidder, Nava Bharat, which is likely to get some undisclosed percentage of shares and consequently invest in the country’s largest coal mines.
Labels: CEMENT, ENERGY, LAFARGE, MAAMBA COLLIERY, MAXWELL MWALE, MUNA HANTUMBA, NAVA BHARAT VENTURES, ZCCM-IH
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ZCCM-IH extends deadline for submission of bids
By Kabanda Chulu
Tuesday February 19, 2008 [03:00]
ZCCM Investment Holdings (ZCCM-IH) has extended the deadline for submission of bids for the strategic partner to acquire equity in Maamba Collieries Limited. The government has transferred its 100 per cent shareholding in Maamba Collieries to ZCCM-IH for it to look for a strategic partner to help recapitalise the country’s largest coal mine.
According to a statement from ZCCM-IH, the closing date for submissions of bids by interested parties to acquire equity and develop the coal mine and a power generating plant has been extended to March 28, 2008.
“This has been necessitated by the logistical problems that arose about a fortnight ago following the floods that the country has been experiencing in the current rain season,” it stated.
Although ZCCM-IH acquired 100 per cent government shareholding in Maamba Collieries, the government would retain a golden share with rights to appoint a director to sit on the board.
The acquisition of the country's major coal mine followed the signing of the share transfer agreement between the government and ZCCM-IH and the agreement in support of the scheme of arrangement between the government, ZCCM-IH and Maamba Collieries Limited.
ZCCM-IH would pay an agreed price purchase consideration in order to acquire the 100 per cent shares that would also result in taking over all trade creditors' liabilities which are the subject of the scheme of arrangement.
Labels: MAAMBA COLLIERY, ZCCM-IH
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Maamba picks new management team
By Business Reporter
THE Zambia Consolidated Copper Mines- Investment Holding (ZCCM-IH) is to appoint a new management team at Maamba mine to help revamp operations, ZCCM-IH chief executive officer Joseph Chikolwa has said. Mr Chikolwa said the company is currently in receipt of a number of bids from interested parties who would like to partner with ZCCM-IH in Maamba.
The colliery has not been operational for over 18 months. Mr Chikolwa said in response to a Press query yesterday that the company had since already appointed a new managing director and Finance manager.
“We are putting in place a new management team, where necessary we will recruit new personnel such as managers to look after the engineering, mineral processing, and geology and mining functions,” Mr Chikolwa said.
He said ZCCM-IH would also reconstitute a new board of directors soon after consultations are completed.
Mr Chikolwa also said the company was working on a new business and financing plan for the mine.
“The business and financing plan was currently under review with a view to have mining operations start as soon as possible in order for the mine to become self supporting,” He said.
The ultimate plan is for ZCCM-IH to reduce its shareholding in Maamba from the current 100 per cent. Maamba coal has been the main stay of coal mining operations in Zambia for decades.
Labels: JOSEPH CHIKOLWA, MAAMBA COLLIERY, ZCCM-IH
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