300 miners at NFC mine suffer gassing
By Mwila Chansa
Sat 30 Jan. 2010, 04:01 CAT
ABOUT 300 miners were in the early hours of yesterday morning allegedly gassed underground at the Chinese-run NFC mine in Chambishi. But Kalulushi district commissioner Joshua Mtisa refuted reports that 300 miners were gassed, claiming that there were only 17.
National Union of Miners and Allied Workers (NUMAW) national secretary Goodwell Kaluba said the union was concerned about the lives of its members following the incident at the mine.
Speaking to journalists at Sinozam Friendship Hospital in Kitwe where the miners were rushed after allegedly being gassed around 02:00 hours in the morning, Kaluba said the safety standards at NFC mining in the last few months had been compromised.
“As a union, we are very afraid for the lives of workers. We will not sit by and watch this because at the end of the day, we might have another BIGRIMM,” Kaluba said.
“Safety in the last few months has been compromised because they have been having accidents and that is regrettable. There is no company that has accidents every month.”
Kaluba urged the government to work hand-in-hand with the union in ensuring safety standards at the mine were adhered to. He said if it meant suspending operations, that should be done as long as safety measures were first put in place. He explained that the gassing which is believed to have been caused by burnt cables started at level 300 underground.
“So when the miners started calling the cage tender, he failed to send the cage down for fear of being suffocated so after the miners insisted, that is when he brought the cage down," he explained.
"After taking the cage down, they decided to go to level 400 because there were more people there but they managed to get out all of them."
Kaluba said there were no serious injuries and the miners were quickly rushed to Sinozam Hospital where they were observed and discharged.
By mid-morning, nine of the miners were waiting to be observed while one was still kept for observations.
But Mtisa said only 17 people were rushed to hospital and not 300 as reported.
However, Mtisa said he had not yet had a word with management at the mine.
Labels: CHINESE, LABOUR, MINERS, NFC, SAFETY
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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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Mine firm invests $150m
By MUKULA MUKULA
NON-Ferrous Africa Mining Plc (NFC) has announced new investments of US$150 million to develop the west ore body and create 1,000 new jobs as part of measures to increase profitability in view of the raised mineral and royalty taxes.
Once the west ore project is completed in 2010, the company intends to invest in the south ore body project, which has 102,030,000 tonnes of copper at an average grade of 2.21 per cent and 0.115 per cent of cobalt. The project will employ an additional 3,000 local people and 150 expatriates.
NFC deputy chief executive officer, Gao Xiang, told the Daily Mail in an interview in Kitwe yesterday that the best way to respond to the challenges of the new mineral taxes was to increase the volume of investment.
He said NFC was poised to be the biggest mine in the country once the two projects were completed in the next six years.
On the new mineral taxes, Mr Xiang said: “Do you think we have any choice, no, we have no choice but it will have a very bad effect on our employees who expect 18 to 20 per cent salary increases every year.’’
He said the new taxes would entail that Government would take away 75 per cent of the US$30 million profit that the mine makes. But the mine would look for best ways of funding the west ore development project.
He said the only concession they wanted from Government was to waive the export tax on concentrates because it was 15 per cent of the company’s profits. He said the mining company was spending K42 million per truck load of concentrate to the border.
“I want to take this opportunity to appeal to Government, our export levy for concentrate is a very heavy tax on our income. We want to be waived for 12 months since we are focused on the construction of our new smelter,” he said.
He also said it would be difficult to substantially increase salaries for workers next year because apart from paying the new taxes, a lot of money would be spent on new investments.
The company had no plans of reducing its workforce because the intention was to increase productivity and be able to increase the profitability of the mine.
“We have to increase our production…that is the only solution for this. I don’t think reducing of employment will be the best way to overcome the difficulty. We hope the prices of copper stay like this at the international market,’’ he said.
NFC employs 2,262 but the west ore body development project would employ an additional 800 Zambians during the construction phase while 1,000 Zambians would be employed once the project was at full production.
Mr Xiang appealed to the Ministry of Home Affairs to approve an application for work permits of 163 Chinese experts who were expected to execute the west ore development project.
A South African company has been contracted to sink a shaft at the west ore body whose lifespan is estimated at 25 years.
And Minister of Labour and Social Security, Ronald Mukuma who visited NFC yesterday told management that Government was impressed with the investments the mine had made.
The minister advised NFC management to integrate the Chinese and Zambian workers to avoid misunderstandings that arose as a result of lack of integration.
Mr Mukuma said the mines should ensure that they employed Zambians on permanent basis and train them in various fields to ensure transfer of skills from the Chinese to the Zambians.
NFC chief executive officer, Luo Xingeng, said the company was seeking assistance from the ministry of labour and social security to help it understand the country’s labour laws. He said it took the mining firm three years for managers to start understanding the labour laws.
At Mopani Copper Mines, Chamber of Mines president, Passmore Hamukoma, told the minister that mine owners tended to give contracts to foreign firms because Zambian companies were not very competitive.
The minister said Government wanted the mines to give business to Zambians so that this could have a multiplier effect on employment levels.
He urged the mines to support colleges and universities so that they could produce well skilled staff to work in the mines.
Mr Mukuma urged the mines to come up with session plans so that executive jobs could be taken up by Zambians.
He said it was dangerous for the country to sustain its mining operations using foreign expertise because there was bound to be a crisis in the event that they left suddenly.
Labels: MINING, NFC
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