President Michael Sata has threatened to revoke Konkola Copper Mines mining licence if the mining giant proceeds with its plans to lay off 1,500 workers.
President Sata said his government will not allow KCM to fire even one miner.He said he will revoke the licence for KCM if the mining firm dares government with its plans.
President Sata was speaking at State House Monday morning when he opened a cabinet meeting.
President Sata has since warned KCM Chief Executive Officer Kishore Kumar against exploiting Zambians.He said the PF government is aware that KCM wants to use blackmail following the revocation of SI 89.
“These mining companies want to be exporting Copper concentrates to avoid paying taxes. Mr Shamenda, please go and tell Mr Kumar that we will take away his licence if he lays off even one worker, then we will take away his licence from him, that’s the easy way of we laying him off,” President Sata said.
President Sata also directed Finance Minister Alexander Chikwanda to increase revenue collection from mining sector.
According to KCM, the move is in line with its continued restructuring of operations.
The company said it was moving towards mechanisation and automation in view of the decreased copper grades at some of its mines.
Company chief executive officer Kishore Kumar announced the development yesterday in Kitwe, adding that the process of laying off the 1, 529 employees had since commenced.
There goes the King cobra. What if KCM says you can have it?
Sata is right yet again
Bapokeni licence bafikamba
This is getting embarrassing from the president.
Does he decipher or is he being let done by his disciples who are advising him?
Thanks
Balanda ba shikulu
2016. Easy victory by his majesty
We should have pride and not feel that they are doing us a favour. It is a “partnership”. These resources are finite and we need to get as much out of them before they run out. We should not always look at the politics of what is said but the economics or benefits as well. The president is fighting for you and you can’t see it. Open your eyes!
Sata-KCM Hide and seek game.
Why is it that in Africa people think a job is an entitlement?
@Wanzelu, actually ULIBE NZELU! Do yourself a favour and read global economic news to understand how Zambia is ripped off in Billions of US Dollars of copper money. Mugabe has grabbed 51% from foreign-owned companies and you go and find out how many have left Zim. This copper is ours and is no less in value than the money that these Indians have brought in. I don’t support all of Sata’s decisions, but he’s right on this one.
And which statistics did you use to prove that its africans?
Iwe Engineer! Where you are jobs are an entitlement – jobs are a central campaign issue where you are and in the USA. It is just a pity that what works for the goose never works for the gander in this world. It must a right to have a decent job after all, and be able to gainfully contribute to economic affairs of any country!!!
@Wanu Ngwee
You have over reacted on this matter. All I asked was the question; what if KCM says the government can take back the mine?.Will the government manage to run and re-employ all those workers at the time PF is proposing employment freeze. I have no problem with the government renationalising KCM as long the people who will be tasked to run it will be employed based on merit and not on political terms like in all other under performing government institutions .
To make the matters worse the ZWD has just leaked a government report on PF ‘s plans to retrench about 6000 workers from provincial and district government departments as part of an effort to reduce the wage bill and regain international credibility.
If ZWD report is true then PF is in a serious mess.
Think!
@1 ngwee Sata was part of the MMD government that elected to privatize ZCCM. Did he not realize the implications of that decision? The Indian purchased KCM for $25 million much of which was borrowed from GRZ. They have made their money and would easily walk away without batting an eye. PF have been bragging about creating thousands of jobs, why can they not just create new jobs for the 1500 people? They are panicking because they do not have jobs to give them.
@Wanu Ngwee
To be frank with you I don’t subscribe to Mugabe ‘s nonsense. If all is okay as you are saying, then why is his government failing to settle $250 million they owe Zambia for Kariba Dam electricity generation project. It taking Mugabe’s government more than 30 years to pay Zambia.Why is Mugabe’s government failing to pay for Maize import from Zambia upfront? Mugabe’s government is struggling to borrow from the international markets because his mad policies.
Study the Zim dilemma first before you draw some parallels with Zambia. Once US with draws it currency Zim will be back to spending billions to buy a loaf of bread.
@Wanzelu & 2020, yes I may have over reacted but the argument I was advancing was simply that KCM copper reserves are our national resource and even if they require the capital and technology that we do not have to extract and process it must not be dictated to us how we must benefit from these resources. We should also not be lied to about the quantities and ore grades left in our ground. Investors always use such tricks to maximise on profit and we shouldn’t allow them to do so – Sata or No Sata! When the investors owns the capital and technology, it is only logical that jobs and taxes are the only way for us to benefit, especially that these companies are not doing any social responsibility projects of note in the communities they are digging out.
kabimba was not in the meeting? his chair is empty. ba chikwnda standing like a frail old man. uluse, abakalamba naba naka.
A company has to make decisions that are congruent to its objectives. GRZ is a shareholder in KCM and must speak at the boardroom level and not from the CEO of Zambia Plc addressing a different constituency which has no impact on KCM. I would urge KCM to remain resolute and retrench the 1 500. If not, KCM would have laid a mine field that will make all corporates face an uphill battle with government intransigence. Capital is big and strong. I know KCM will and should win!!! I love private enterprise.
@1 Ngwee did KCM issue an ultimate to government? No they didn’t. Even @Saulosi a staunch supporter of PF sees KCM’s action as a merely a business decision. A few weeks ago it was Shoprite being threatened with withdrawal of their license. These threats do not at all help attract additional FDI into the country. The threats also raise doubts of Zambia’s ability to repay loans without invoking sovereign immunity. Such threats can also cause KCM’s lenders to recall their loans and by so doing stifle the operations of the company. Your argument is like that of a chap, who refuses to be substituted just because he owns the ball being used.
We will run the mines! I will go back to Nchanga TLP as a Metallurgist. I know that plant like the back of my hand, but left since I could not stand one guy from RSA who had insulted my Government in 2002 when Anglo was running KCM. Zambia has got enough qualified personnel who can run the mines. Groomed at ZIT/CBU&UNZA and well developed by the former ZCCM LTD training programme.
Have worked 10 years out now but the programme that ZCCM Ltd for developing personnel and running the mines is second to none. Let the President ask and consult extensively as long as he does not consult some of the guys who were on the forefront during privatisation just caused they wanted to buy mine farms and mine Schools. We know them. Even some of the ministers who were then working on the mines know them.
That is good question but Sata has not asked himself that. If KCM decides to surrender the mine to govt, is Sata going to find another investor to run the mine profitably? If his govt decides to take over the mine, are they going to run it efficiently especially with their tendency of employing cadres? These mines were initially surrendered to govt by Anglo American due to a drastic fall in copper price. Late president Mwanawasa’s govt sold the mines to KCM at a low price to avoid a disaster on the copperbelt. Mining business is very profitable but it can at times go through dangerous valleys which the current govt cannot handle. You do not just make decisions without considering all possible outcomes. Mugabe learnt it the hard way. He got the land at a price of thousands of lost jobs.
@Kaponya where were you when KCM pulled out and the mine operations were bleeding cash? Running a mine is not jerabo business that you are accustomed to. Zambians were in-charge of the mines before privatisation and run down the operations. So stop talking as though we have never had a chance to run mines as Zambians.
Good move mr president..
GRZ should start first by removing wage freeze and its two year ban on employment. Unless this was mean for public gallery, we are in fix. Useless.
Making a fuss over a mine (Nchanga) with only 3 years mining life left? With the depletion of the main ore body, and now scavenging for low grade ores, it is inevitable that costs must be reduced to ensure sustainability of the business. KCM is not a charity!
Reality is now catching up with PF. Now they have to critically think of economic diversification to mitigate against the mine lay-offs. How will they empower entrepreneurs if the coffers are dry? by negleting the collection of due public funds (K14bn – Membe, Nchito & JCN)?
A threat which you cannot carry is not a good move….please. Can the President revoke the license of KCM if it retrenches FIVE people?! Oh….the President said he would revoke the license if KCM retrenched even ONE person. See how unreasonable, the President is. And those of you who know Wednesbury unreasonableness, you would know what the outcome of Order 53 judicial review application coupled with an injunction.
The way the President is going about this is totally wrong, in my view.
I SUPPORT THE MOVE TO LAY OFF 1,500 WORKER. BUT THESE SHOULD BE THE PARAKASHIS, KUMARS AND THE LIKES. THEY HAVE BEEN WORKING IN ZAMBIA FOR MORE THAN 5YEARS SAYING THEY ARE TEACHING ZAMBIANS THEN GO. ARE YOU SAYING AS ZAMBIANS ARE VERY ‘IFIKOPO’ AND FOOLISH THAT WE CANT LEARN IN 5MONTHS.
ZWA KCM
Mr. presido pls just get it we are going to give it to FQM………..
What you don’t understand is that within the next 3 years, Nchanga will become a MUSEUM & possibly a tourist attraction for underground visits…the Copper Ores are FINISHED, so where will salaries originate from? No investor, not even CHINESE in their right state of mind would even give Nchanga a potential investment thought.
Economic Diversification is the answer here. Government is just trying to delay the inevitable
It’s time the Indians started behaving themselves. Why not lay off their many nationals they are paying heavily n just spying on Zambians
Just grab the licence so that we give it to more seriouse investors, not those stupid indians
On this one let us support the president.
I agree with you. When the president talks sense please let us support him. Atleast Sata has said sense after a long time.
Is it is right for the President to threaten private enterprise with revocation of operating license for taking economic decisions? Why cant the President pay for those 1 500 miners who are meant for laying off? Does government have the money for such an expenditure? Today its KCM which has been threatened, the other day it was Shoprite…..and where will it stop? When the last reasonable investor goes or stay away but for the Chinese and their slave wages and sub standard collum mine operation standards??
Good move Mr President, this is our country, let them go if they want.
You failed to run the mines and sold them…..this is the result of those actions, live with it!
They will go, leave liabilities tied to the aged assets and a depleted ore body. and in a few years, Nchanga open pit will be flooded into NCHANGA LAKE!
Yes, Zambia is our country but the mine belongs to KCM. Respect private property if you want freedom to continue. Will you agree for the President to tell you how you run your home and what meals to serve? So why should KCM listen to him over their way of running their own property??
Yayaya, I wonder what type of economics this is.
Economics from Uncle Bob school of economics.
good move
Now you are talking my presindent,also look at PAYE.And why govertment instruction was not followed.
The best thing is to Revoke the license & wait for the next investor. Who will be interested in low grade copper & see if he will be paying more to workers as the KCM do & also if he’s going to employ the same people. Good move mr COBRA
When Chambishi mine was sold to the Chinese it one of the least attractive and nobody was interested in it. Same for Luanshya mine. The Chinese have managed to turn around these assets. I can guarantee you that if the Indians leave today, another investor will show up in no time. Remember how the Indians themselves acquired KCM? Immediately Anglo American left citing high cost of production, the Indians moved in.
@kabamba. Will the CHINESE introduce ORGANIC COPPER? Because the drive for the retrenchment is depleted resources. I wish I could just put you guys in a lecture theatre and make you understand the rationale behind this. It is inevitable that people must be laid-off if KCM is to remain sustainable. For instance, if you have 10 people cultivating a 10 acre farm at $X as lumpsum, and then later you reduce the tract of land to 2 acres, if it will still cost you $X to have the 10 labourers on this reduced farm, will you be able to make any profit?
Now you are talking my presindent,also look at PAYE.And why govertment instruction was not followed…
Mr. President Sir, these investors especially KCM Plc have taken advantage of the very small packages the miners are given at termination. Just ask them to go ahead but increase the calculations from the current two months per completed year to five and this declaration MUST come from you, then it will be fine.
Mwasosa ba Kateka. Long live to my beloved Presido. There is so much arrogance on the part of KCM
They have to be hard,firm and strategic on this one.I know the mines are also playing games in their aim to maximize the profits.The mines will do whatever it will take to achieve it, but the government must also tread carefully.We are dealing with seasoned capitalists here.They shouldn`t just let emotions to dictate the pace of the whole thing.All the best Abena cobra and your group !!!!
revoke their licence and then get ready for KCM to be a white elephant unless you immediately move in as government, broke as you are to run things. here’s a brilliant chance to even employ one of your family tree chaps as ceo, see how that pans out. things are not as easy as black and white anymore. revoking the licence will lead to a load of chain reactions which u dunderheads in govt will have no capacity to handle. the three zeros are soon coming back on our currency, mark my words. 🙂
You are right on this one. Sata is playing to the gallery. The implications of revoking the mining licence is not as easy as 1 2 3. Let government engage the mining conglomerate and reach an amicable solution unlike trading in threats. Let us address the issue level headed…..politics aside
Chinese are willing to come in and takeover even today. When KK went to China, PF govt wanted to borrow $10bn, but the Chinese said give us two copper mines, then we give you $10bn loan. And KCM has been using laying off workers as blackmail. Few months ago, ZRA was pushing for money, what did KCM do, they started the issue of laying off 2000 workers, unit ZRA had to write off a lot lot of money. This time around its SI89 and PAYE which they havent been paying for past 5 years. I don’t think these a kind of investors Zambia need.
I suspect that a lot of us are looking at this simplistically. (me included). Economics is not my forte, but even I know it’s not as easy as “don’t fire even one worker, we’ll revoke your license”.
There are other factors that a seasoned economist or politician would factor into the equation before flexing his muscles in this simplistic way.
But hey ho, it gives Sata a perfect chance to reclaim his alleged ‘man-of-action” label.
Ought to be re-branded ‘Clueless-Man-Of-Action’ kick butt and then find out whose butt he kicked later, that’s his tagline.
Our President has finally awaken from slumber..Tell M’membe and Nchito to also pay back our kr 14 million.
Just go ahead & revoke the licence.. Or will go thru fake displinary action.
Revoke it. KCM is a sinking ship. The captain gat no idea on how to steer the ship out of troubled water. Revoke it please before our people die of starvation!
Analyse the situ at KCM. Don’t just issue threats
Anglo American Corporation is more than ready to return at KCM.
” Anglo American Corporation is more than ready to return at KCM. ”
You mean Rothschild. That’s who owns De Beers, and Anglo-American De Beers.
i was about to lose hope in sata . good move . in chess that’s a check mate
Not really….. it’s more like throwing all the pieces on the floor when you know you are about to lose.
Mr President,the nation is behind you on this one.At least kwapitako umwela ku State House after a long time.
Good move king cobra!! Spit please… It is high time the indians started behaving like real investors who appreciate the Zambians and not *****s… Spit again cobra
This president is so reactive, he thinks he is addressing the kdobis at Kulima tower ..this is bad if the president starts creating the impression that he has powers to revoke anybody’s licence..this is really dangerous and boadering on economic sabotage
Ba MMD Chief Bootlicker, you could be right, but do some of these investors have the interest of Zambians at heart? Tax evasion ni fulu fulu, polluting our sources of driniking water is the order of the day, air pollution from their smelters and tankhouses in wanya wanya, what the chaps get in a month is equivalent to some poor miner’s pension after working for 30 years. Labour import nayo ni kaya. All major jobs are sub-contracted to their kith and kin. Talk to any of the common miners employed by these guys and you’ll be lucky to find just one (01) who speaks good about these people.
The fact is that at US$6500 per ton KCM makes losses…
No matter how much noise the will make, people are going to loose jobs
When the copper prices where as low as 3500per ton sometime back, i dont remember 1500 employees losing jobs. this is uncalled for by KCM. They can go if they want.
Listen people. I am not supporting what KCM does. Far from it. To me it is about the RULE OF LAW. If KCM is evading Tax, take them to court and make sure you slap heavy penauties for that.
My Issue is the impression that the president can just wake up and revoke anybody’s trading license. That is a bad message being sent out. Why do we need courts if the president has all powers to do whatever he wants.
Besides, which investor both local and international , would want to put their money into such a system that the president can just wake up one day and grab. This is like IDI AAMIN time.
This is dangerous and am deeply concerned.
I’m with you MMD chief.
This collective appetite for drama and ‘cobra spitting’ is responsible for where we are today. I can’t believe how many people are now saying this is good, completely ignoring the fact that we need a considered approach.
Ati “ico, King cobra!”. Sometimes I think there should be an intelligence exam before a voter’s card is issued.
I disagree ba wesu. i dont think his move to state that he will revoke the license can be put in the same boat as him saying he can wake up any day and revoke the trading licenses of mines or any other. There stands a grave matter at hand,1500 people jobless is the matter we should be discussing. So the question stands,is his move self driven or is it a counter to a threat? If you ask me,his looking out for both the people and the economy at large. i stambled over a small brain asking the Govt. to provide employment to the retrenched,i would like to say,ama elections kale yapita. I saw a couple of economic analysts in the back ground,analyse the impact of unemployment not only on social welfare but also on the security of the lives of both the retrenched and those around them.
Please Mr President no more lip service we at KCM want action. Shamenda said no miner should suffer PAYE deductions, after deductions Shamenda was tongue tied. Now you are saying nosingle miner should lose their job. WE WILLSEE. TULELOLESHAFYE.
Revoking the license means everyonr and not just the 1200……
Etc lose but everyone loses… If you ask me i dont think that’s
A good way if dealing with the matter.
LESA ABE NAIWE SATA LONG LIVE MY PRESIDENT WILALWALA TATA ULEINA FYE DONT DIE I LL VOTE FOR YOU AGAIN IN 2016,2021,2026 ETC ETC
very funny….
Mr Sata, learn to research issues before issuing empty threats! KCM has no interest in SI 89! There production is so low, they have no concentrates to export! There are some real business issues that are dictating their actions, including downsizing. Engage them in dialogue instead of killing them off. Handed poorly, this move may result in loss of 10,000 jobs instead of 1,500. Just saying.
Ba Joe Bolton, the president is well informed! Its you who needs to research issues. Production is low because these Indians are stiff necked. Because of their arrogant nature the the much sung about KDMP was WRONGLY POSITIONED and nothing comes out it. Only water is pumped out day in, day out. We need a new investor to inject money so it can be developed further.
Production is low at the new smelter because KCM has no money to buy concentrates from other mines. The new smelter can only produce when the internal concentrates are blended with concentrates from other mines.
These Indians made a mistake by closing the old smelter which could produce copper using internal concentrates.
If a layman like me has that info, “what more the president of zambia.”
Gentlemen you need to understand that kcm is heavily indebted,there liquidity is very very bad.and they are un able to settle their due.what is needed is simply the rescue plan other wise!!!!!!!!!!!!!!!!!.Let kcm and goverment get to the drawing table and brainstorm.
This is the king cobra we know ! Ask them to live we can manage the mines.
Are they not alive?
Ba patrick what takeover have successfuly managed so far?
@Patrick
drama, drama, drama. When will you learn?
Rather than threaten them with revocation of their licence, ask them to justify their intended action with facts and figures!
GRZ has already demanded for a technical report from KCM. This downsizing is untimely and fishy by KCM… how do u downsize by laying off 1500 employees at once???
Yes.
here is what would happen, say sata went ahead and revoked the licence: KCM will go away and, in the medium term, we will have to sit around twiddling our fingers waiting for the next investor. while we are waiting, there’s two options: i. Mine closes, everyone goes home and starves ii. Govt steps in and considering the govt is broke, they will have to borrow heavily to sustain a loss-making operation while paying salaries and before we know it, we are in a ZCCM situation and our debt has ballooned out of control. Can we please try and be objective and view things with an intelligent mind. This is 2013 and not the eighties for petessake. Vuvuzela kind of politics with people egging on disastrous decisions is very sad.
I TOTALLY AGREE WITH YOU.I FEEL IT IS BEST FOR THE 1500 TO GO SO THAT THE COMPANY IS SAVED,MIND YOU VEDENTA ARE CAPITALIST WHO HAVE COME TO MAKE MONEY.
Your analysis is right to the point. Better to lose a leg to serve the whole body than gradually decaying a leg until the whole body is mutilated. Dialogue is the way forward and not threats. Arrogance leads to destruction….
agree. Cant believe the lack of critical thinking skills displayed by otherwise-intelligent bloggers here.
One question, how many Indians and Zambians will be affected? Mind you, one Indian’s salary can cater for five Zambians. Let us think.
sleepin prsdent,hw ar u nw? hw can u force kcm to maintain its workforce wen u hv impose wage and employmet frezee,mad prsdent in state house
@JOE BOLTON ********* U DONT KNOW WHT U AR TALKING ABOUT ASK PEOPLE WORKING FROM KCM THEY WILL ADVICE YOU OVER YOUR IGNORANCE
Let them go back INDIA,SATA is right on this one.We cannot be blackmailed on our natural resourses. Mining is good as long as its benefit locals.
corporare failure is looming at the mine
The authors of Statutory Instrument 81 should be taken to task. Otherwise this won’t be the end of foolish decision making.
JUST GET IT AND LET THE GRZ RUN IT MAYBE WE CAN BE EMPLOYED
I hope u r related to sata.
those bloggers who are against the president’s move must come to chingola and consult from us people working at kcm dont just comment because you ar not PF this is nothing political
I’m in Chingola directly affected by what is happening at KCM and does not in any way support the President’s threat, it is emotional, lucking facts and analysis. Firstly, if there is mining firm which would be in favor of the revocation of SI89 it is KCM. They have the ability to process more copper than they are producing. This is a business and these guys did not come to offer a service to Zambians but make money and the process Zambians benefit. I guess this does not require political and emotional reaction but an economic solutions which I’m afraid PF government seem not to have the capacity to handle. Let the hire Felix Mutati to help
And don’t just support simply because its your’re blind to the simple economics that govern such businesses.
You are right my brother.people are just commenting any how without understanding whats on the ground.can someone suggest a better rescue plan for kcm if you have one rather than demonstrating your personal issues here.this is real life not politics hello!!!!!!!!!!!!!!!!!!!!!!!!!!!!
alenzo, dude, we are setting out simple economics. There is a real danger here of everyone losing their jobs if your presido goes down this path. I think the information about low grade copper and some parts of KCM, Nchanga Open pit being closed if am not mistaken, is not false and will have financial repercussions. This is no different between the government making outrageous commitments with regards unplanned expenditure and then mitigating the shortfall by freezing wages and employing with what KCM is doing. Aggregate the number of people the government is basically keeping out of jobs with the 1500 that have to be let go to save 10,000. It’s a no brainer but then again, your prez has never been known to effectively use his brain.
you know the reason Mwanawasa and to a point RB, run effective governments was coz they appointed the right people to the right positions and thats why you never heard them call cabinet meetings and ZNBC to watch them perform for the short-term appeasement of gullible masses like most of our brethren here to the detriment of long-term goals. People who know better in his government are petrified of this unpredictable empty tin and it is a shame that in this day and age someone, a head of state, makes pronouncements commensurate with IDI-flippin-Amin! They made a movie about the dullness of that man for crying out loud, is that what we are headed for? We are dealing with people’s lives and families and this man sees it as an opportunity to salvage his waning popularity??
@Dudelove
Well articulated. My sentiments exactly.
The king cobra has finally spat on kcm. Miners can now breath a sigh of relief. Bravo mr presindent.
Truth be told. This is populist , immature and a product of inconsistent policies. You can’t blame KCM . Why did govt issue the SI and implement it in the first place? Govt can not blame business for its own mistakes.
What is required is maturity and leadership by engaging with KCM .
Threats won’t create jobs but will only erode investor confidence and ultimately lead to more job losses.
Infester or investor confidence.Confidence in stealing our wealthy.
I did know educated people are the most s.tupid and gullible people on earth.
For God’s sake an owful lot of these guys you call investors are just Vectors…(insects) that spread disease and sufferings by displacing people and polluting our natural habitat.
Zambians…start thinking outside the box lest you depend on a visitor to buy you bread and mealie meal.
We need a president with an iron feast….the Zambia shall be ok. take a leaf from cuba with a myriad of sanctions from the WEST.Has their economy collapsed? Nay.Ekse presidents you want will sell even the last soil you are standing on because they are selfish and GREEDY.
@truthfairy
Well said. I agree with you
This move has been long overdue.Please revoke the licence and let these Indians go to run tuntemba.Long live our President.
So now Sata is a saint? the chief confu Sata is the problem solver? He has spent alot of money of a bloated Gov now the gov cant employ. KCM should not lay off these workers otherwise our families and friends will suffer. To hell with Sata!!!
I am beginning to like my presdo on this one
Oh yes….. this will help attract new investment and create jobs in Zambia. What foreign or domestic company won’t want to spend money and hire lots of new workers knowing they can never lay off even a single person if business conditions change? I’m sure this will also help build confidence in Zambia as a place to lend money to.
….or not?
Yep!
Education is very important. This tantrum clearly shows the lack of it.
Before there was KCM there used to be Anglo American Corp who left Zambia because thier prefered candidate Anglo Andy Mazoka (RIP) lost the elections to Levy albeit via fraud. They too thought Zambia can suffer, i am certain that we can still manage to find a genuine investor to take over from KCMs London Stock Exchange registered Vedanta Resources . This is a great move by HEMCS
KCM IS heeding government, PF has announced recruitment and wage freeze due to inssufficient ressources. KCM has jumped on the PF Bwato-band-wagon. Why not lead by example and fire half of your cabinet, nearly all the deputies and reduce your salary Mr Presido? The next three years will be TOUGH, shouting from an ant-hill is something but Governing is not for the faint hearted, MWAFISANGA!
Dialogue is need people,remember GRZ cannot run any profitable institution effectively. Look at how long the Civil Service Credit Bank is taking to process one loan application for Civil servant (3 months) compared to other leading institutions who take hours to process the same application.
President has no power under ZDA Act to revoke an Investment Licence. King Cobra, consult.
You are ignorant, mining licences are issued by Ministry on Mines
zoona uli cikopo eeeeee!
Kaili Boro, after you make such a pronouncement you are then supposed to qualify why you have called him Ichikopo by intelligently rebutting his statement. Why is he a chikopo, in short?
Does Sata have any advisors? if he did, he would not embarrass himself in this way. Vedanta’s earnings are probably more than two times this country’s GDP. You think they so much as give a heck about your false blow outs. naaaaaaaaaaaaaaa. They probably are laughing it off over Havana cigars and vintage Don perigno .
Hey you who thinks you are well informed about Vendanta’s earnings… dont you think KCM contribute to there earnings? Ulekwata amano iwe kapala… why do you think they are here? They can go to hell if they want coz these are our resources. do you have any idea what it means if we have 1500 people jobless? economically thats like tripple the number of people who will be affected. Its a brave move Mr. president! Mr. Sata can also go to his office, sip of some wine and laugh while waiting for a Que of offers for investers…….. from all walks of life…….
You a wrong Business people are greedy people, so lossing even one ngwee can cause a headache and sleepless night. Rich people want to get everthing , I mean everthing even a two ngwee coming from Zambia.
Threats, Threats and more threats, no dialogue among bakolwe.
Zambia needs an educated president who can be analytical, proactive and not reactive characters with no clue of economics. Total disaster
Checkmate unappreciative insolent chili eating indian bustards.u thot ur president
was weak.take ur investments elsewhere.viva mr .u’ve saved lives.God bless u.
Government has come out strongly on KCM to ray 1,500 workers and I am happy that they have seen the future consequence of miners but forgetting that government has done the same by denying graduating students from various learning institutions from being employed by government for the next two years just because u are in employment. Lesa wabonse
mmmmm
ray or lay iwe chi pf?
What worries me is the amount of ignorance from some bloggers. Where on earth are companies forced to keep employees they dont need? How do you run business with such kind of decisions? The Government has frozen employment for the next two years and yet private enterprise cannot do the same? this is insanity. The Government should be helping these companies keep their staff. This is what Obama and others did during the global economic melt down through bail outs. They did not issue unnecessary threats, rather they assessed the problems Companies were faced with and came to their aid. Of course when problems are too big companies are allowed to go under. it is normal business practice. Popurilist decisions or out bursts will not save this poor economy. i say no to govt take over!
@mamen
You speak sense
Many of these bloggers who are supporting Sata learnt their economics from Uncle Bob school of economics in Zimbabwe. Unfortunately, from the time they got their degrees in economics, they have not gone back to Zimbabwe to find out what that type of economics has done to the economy of Zimbabwe. I am told told even the enrolment levels have dropped at Uncle Bob school of economics. The reason for this drop in enrolment is that the degrees are no longer recognised in many countries in the SADC.
ANYBODY WHO WILL SELLING MORETHAN K50 WILL HAVE YOUR LICENCES HANGING HERE.WHO SAID THESE WORDS?AND HOW MUCH IS A BAG OF MEALIE MEAL TODAY
I hoping this time LT will publish my non insolent comment they still have not published my earlier one . Like is said in the first comment , before there KCM came to Zambia there used to be Anglo American Corp who actually left becuase their prefered candidate Andy Mazoka (RIP) lost the elections to Levy albeit via fraud like most MMD elctions after 1991, they left and Levy managed to find Vendata to run KCM , this is a globalised economy no country should hold the other a ransom let them go if they can and i am certain the Chinese,Malaysians or Australians will be glad to come here . It is time we stopped listening to people who are coming to make money in our country instead they should listen to us as we are the owners of the minerals not the other way round .
its high time the president commented
Albeit poorly
The government must relax tax laws and provide concessions to mining firms as well as set aside trade free zones to enhance business processes.our government just likes to reap where it has’nt sown.too much expenditure on the civil service and investments in infrastructure are drowning our country in debt.
Are you dosing to write this?
Thanks LT for chasing me from your site
The economic impact this will bring is beyond what all of you think! The threat on would be investors is also what should not make Sata do what he is saying. And if KCM says go ahead and have your licence, will this bankrupt gvt be able to run the mines even for a day?
CHRIST JESUS IS SAME, YESTERDAY, TODAY AND FOR EVER!
@ Zalimba Jere, No relationship to the topi
To KCM , Chinese are willing to come in and takeover even today. When KK went to China, PF govt wanted to borrow $10bn, but the Chinese said give us two copper mines, then we give you $10bn loan. And KCM has been using laying off workers as blackmail. Few months ago, ZRA was pushing for money, what did KCM do, they started the issue of laying off 2000 workers, unit ZRA had to write off a lot lot of money. This time around its SI89 and PAYE which they havent been paying for past 5 years. I don’t think these a kind of investors Zambia need.
Correct! I will appoint you minister of finance with immediate effect come 2014.
emutima u yu bakateka. president wabonse, come 2016 wil give de vote. twasata ateba bashimaini, mwayingilayi mwane.
Here comes Sata’s 1st worst blunder, Watch this space!
To KCM, FYI, When KK went to China, PF govt wanted to borrow $10bn, but the Chinese said give us two copper mines, then we give you $10bn loan. And KCM has been using laying off workers as blackmail. Few months ago, ZRA was pushing for money, what did KCM do, they started the issue of laying off 2000 workers, unit ZRA had to write off a lot lot of money. This time around its SI89 and PAYE which they havent been paying for past 5 years. I don’t think these a kind of investors Zambia need.
Why are Zambian Mining forms always rushing into retrenchments each time the government wants to increase the mineral taxes???
Firms and not forms : above post
I wish you could come to Australia and see how people are being retrenched on the mines…. ignorance is expensive
there is no economists in if pf government to advise the impact this decision has on thousand miners on the copper belt in the near future. in general this will send bad signals to the international community as far as investors investing in Zambia
Did you read about the 5% and 11% tax?
Someone please tell the President that threats will not yield anything. Dialogue, please. The days of Idi Amin are long gone. GRZ has no capacity to run KCM; a govt that had to borrow $40m to stay afloat cannot run a mine with costs is the region of $150-200m per month.
Send your Mining PS and his team to KCM to find a sustainable way forward. Threats will not help anyone; threats only make the country a toxic place to do business.
Great Mr President! You are the right path and we are behind and with you
Hamuntu, why can’t the Chinese start their own mine in Zambia instead of grabbing KCM? There is plenty of unmined ground in Zambia …..like Lumwana and Kalumbila in recent past. The Chinese have never been able to pay a living wage to Zambians. If you want to be exploited, keep entertaining the Chinese and see who will have the last laugh!
Look at the posture of Finance Minister like a wet chicken, they all do not know what MCS would say so they are so scared. What a government of finished people starting from the head 80% look sick.
A REAL ZAMBIAN CAN EVEN BREATH A SIGH OF RELIEF.
DONT YOU FEEL ASHAMED BUYING PIZZA ONCE IN A MONTH WHILE A FOREIGNER INVESTOR HAS A SACK FULL OF PIZZA TO THROW IN THE BINS,
Zambia Twasebana..MULEENDA. I THINK THE CONGOLESE ARE EVEN MORE SMARTER THAN ZAMBIANS BECAUSE THEY FIGHT FOR THEIR FUTURE.HOW I WISH ZAMBIA WAS CONGO.
This is the time to get our mine which was given away on a silver plate. FQM lost mining assets in DRC due to mal-practices and dont ask me who got them, the Chinese. I guess my employer Anglo Amerian will be very excited about this news. I have a friend who used to work at the tankhouse in Nchanga who knows the dirty methods of how KCM avoid tax by declaring a good amount of cathode copper as scrap which is exempted from tax. Ba Australian engineer mulibabufi, there is no mine that runs at that operating cost of $6500 per tonne Cu. Most are at $1.5-2.0 per Ib of copper ($3310 – 4414 per tonne copper). For the current price of $7000 per tonne it is still very profitable and that is the reason FQM is developing a new smelter and another mine in Solwezi.
@ 34.1
Iron fist not iron feast .Lol
We are tired of hearing this and that on Kcm has if its the only copper mining in Zambia. Let them RETRENCH US .
Good move Mr President,but dialogue before you kick them off.
Even as a strong critic of this govt I applaud this stance. Revoke if they refuse to comply- KCM will be the loser after investing massively. We will find another. In fact I have an American conglomerate that has been doing exploratory studies on the coppper resource in Zambia. Kwena ba kateka even though I detest your leadership on this one you have approval.
This is the man i voted for bravo your excellence………to hell with kumar
Inconsistent and bad govt policies are the cause of this. Govt increased the minimum wage without widely consulting business and without thinking through the impact on running businesses in this country. Although workers were over the moon with that decision, these are the effects like it or not. Shoprite was threatened for this.
Revocation of SI89 was a typical case of govt inconsistency throwing business plans into disarray. How can govt blame KCM without holding any one to account for the mess not even the Finance Minister?. Instead, KCM is threatened? awe!
Sata has again put Zambia under international focus for the wrong reasons. Some one should tell this man to consult before he opens his mouth.
Kumar is too selfish. He wants to maximise profit in a foreign land. My dear president, g3t th3 licence if he cannot respect the rules of the land. Kuya bebele!!!
which laws has kcm broken? this threat has no legal basis.
How I hate that statement “Kuya bebele”. For some reason it always makes me think of a man mistreating a long-suffering wife.
Kumar dont even respond to that rant. Go ahead and effect the plan but do it in drips…..start by retrenching a section of 7 people. Wait for a week, then retrench 30 people……then give a breather of two weeks and then retrench 800….
ZAMTEL IS DOING FINE.
KCM ask LAP GREEN
It is never too late to invite KCM for consultations with government. Through dialogue, a lot of unnecesary friction will be avoided. Why is the media substituting contacts and discussions? Please do not succumb to pressure from any quarters. Meet each other and map out the way forward. Sometimes media outlets aggravate volatile situations. This looks loke one such moments.
First of all, why are we still thinking mining sector can run well in the hands of foreigners?? Who is saying the president will assume that responsibility of controlling and revoking licenses as he wish. We have been observing this stupid trend grow and from the business stand point, a chaos is created so these Miners can optimize profits and in the long run abusive Zambia. KCM go to hell as there is enough investor within Zambia that can run mines now. This move is right from what ever angle one looks at. Its about doing what’s best for Zambians not Indians. Also please put a freeze of work permits for mines.
bufi.
This is hypocrisy on the part of govt. The wage and employment freeze planned for 2014/15 is a form of right sizing or putting the number of people who should have been employed on the streets. Same thing as what kcm plans to do from march 2014.
Shockingly, now we hear that govt is contemplating its own retrenchments in the civil service. Hypocrites.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Kumar must be having a blast.
Yeah Mr.Sata take it and give it to U&M MIning
gentlemen, its simple let kumar lay off the 1500 employees. am sure he meant the indian employees at kcm. if you check the activities at kcm, you will find that folk lifter operators are Indians, supervisors are Indians who cant even speak English, what kind of experts are they? I think lets check the immigration department why they allow such people to come and rob our positions in the companies not only at kcm, look at how much they are getting. in fact lets support kumar to lay off all the Indians including himself. our people are suffering at kcm under these Indians. I think there was also an over sight on the gvt. to give people who are specialised in shops mining licence. Mr. Presido, you’re wasting your talking to them just revoke the licence.
Wanu Ngwee u are right. These Australian technicians alias “Engineer” and his toki friend Alibe Nzelu don’t read news! Google on youtube and see how these companies swindle Zambia out of billions of dollars. Even German Chancellor advised our government that if approached they can help Zambia because they all saw that Zambia was so rich that there was no need for it to be with the high levels of poverty. You will be saddened to watch how they beat the system not to pay enough to Zambia. Entitlement? Uku tu mpa.
HOW DO YOU GOOGLE ON YOUTUBE?YOU ARE THE SAME PEOPLE WHO ARE ABLE TO FACEBOOK ON TWITTER.
The other guy used to go to them to get money for the party. This one will not dance to that tune.
… and Finance Bank is doing fine too.
d president hs economists or advisers who givs hm advice b4 he say somthn on any issue. u bloggas r jst shown yo ignorance on ds isue, u dont evn understand it betta jst 4 d sak of bloggin.d wish 2 impose wage freeze nt layn off civil servants, d increaments civil servants recived frm d pf cud av recived in mmd gvt in 10 years time lukn at d 10%,15%…civil servants used 2 recive. big up 2 pf! com 2016 its micheal o d way 2 2021! kabimba 2026 up 2 2035!
well those must be the dullest economists and advisors in the whole wide world.
Late LPM committed 2 fatal errors in his Presidency.
1. Sale KCM to Vendatta of India inspite of having seen what hapenned at Binani’s Luanshya. Indian investors are only good in the first world where the are always pushed againist the wall by stiff laws and standards. We have no capacity to tame a western companies like FQM let alone/worse indian or chinese company
2. Give RB the post of VP (automatic successor). Magande would have been a beetter successor and perhaps with Magande as President Maybe MMD would still be in power today.
What benefits is Zambia getting from KCM apart from poor paying jobs?
As if that is not enough they want to export concentrate and deprive Zambia of the value and jobs in processing.
Who said Zambia cannot run the mines; look here in Saudi Arabia; government runs the show in oil industry and they getting max benefit.
Why do you have to baby KCM to exploit and blackmail Zambia
For once let’s change our thinking; let’s think outside the “box”
The bloggers who are saying Sata’s unilateral decisions are a good move should think again.
The worrying thing here like most concerned bloggers have said is that the president is abusing his authority by not consulting experts on issues he least understands.
Another recent corrupt and abuse of authority by the president was the appointment of his sister-in- law, a nurse as ambassador to Turkey. Clearly too much power has dangerously gone to his head.
Ba Mudala ba Sata, you are at it again. You shout publicly I think, just to impress us that you are now awake from slumber. Stop it. You shout at your on poor choice of ministers, now you are talking to the professional business community like you do to your boys and girls. Please, do call them and talk to them privately. We are most interested in results and not public condemnations. Tell me, what would you do if KCM decided to close the operations after your outbursts? Vite sile. Ciza uli?
Proverbs 17:28
“Even a fool who keeps silent is considered wise; when he closes his lips, he is deemed intelligent”.
sjmply business. if cost of production goes up when has to look at other controllable cost units in order for them to achieve meaningful gain. In kcm scenario labour is one such relevant factor in view of numbers compeigned by governance in the initial purchase arrangement. Chikanda and Msiska were not foolish!
what will happen if KCM investors leave? zambia will cease to exist? we are all going to die? what will really happen. i think we have been decieved; shhhh… think! if these investors were not making money will they have come to zambia? is vendatta only entity that can run KCM? How much is KCM contributing to the treasury? mining contributes more than 60% to GDP but less than 20 % to Treasury why? who has bewitched us to think zambians cannot run KCM? are people running KCM not humans like you and me? i really expect more from zambians than what is being blogged here.
Kishore and his team must have done their homework, this is the second time this year!
In as much as the President wants to SAVE HIS STAY AT PLOT 1, and pretend to be speaking for us, what if the Kishore group says you can have it! Are we aware of the consequences?
How fast can things normalise?
I shudder to to think….
people like 2020 have such a short memory its Mwanawasa who sold the mine for $25 million on credit to the indian and by then Sata was already in opposition. the indian later raised $75 million within 3 month of operations and fully paid the loan from the mine resources so the indians got the mine almost for nothing so even reposessing the mine won’t make any difference they ve already made their billion $. U also ve to know that wen copper is paid for all the money goes to india only a fraction tricles back in for operational cost. Nabaleya fye aba ba peri peri chee.
Wen i call beings like @australia engineer,Alibe nzelu,Ndobo,Nostradum oders like them;DEMONS this is de reason. Can a normal human being support kcm? Can a normal human being condemn de President?Wat kind of politics re u playing with yo hh?
Why should we be condemned to perpetua povert when the mines are ours? The so called educated condemning the Presido here are only showing how dull they are?lf they were not we couldn’t have vultures like kcm exploiting us.Bravo SATA AND PF!
“perpetua povert” will always be yours if you don’t wise up – and fast!
Let the chaps lose their jobs, they didn’t vote wisely meanwhile us we are enjoying expensive beers & nice prostitutes yaba life is good.
Your president is puting you into jeopardy and you are busy praising him! Dialogue can do better than what he is talking about. Advise him pliz before he makes the blunder of his presidency.
Zambians are very good at theories which only produce books&fail 2 resolve issues.KCM can leave,4 how long r we going 2 put up with this nosense frm kcm&other mines?4 once b patriotic, copper is 4 zambians&we deserve better.the wil fight is the day we wil realise that we only have one zambia.dnt allow unworthy investors mess wit our resource it b natural o human. Have respect 4 yo leaders even when r nt in agreement wit their decisions
KCM is a private company and must enjoy the benefits of being one. The President must actually understand that his constitutional power does not permit him to wind down companies. What sort of socialism is this? Today you are pro capitalist tomorrow you are pro socialism? What do you stand for?
Good evening
I also fully support the president and I’m proud of his firm stance. This is a serious problem that needs serious attention.
These mining companies have had it so easy all these years and have been making more profits than they actually declare. We cannot allow them to continue exploiting our resources and our people like this.
The Zimbabweans now demand 51% shares of every foreign-owned company that invests there. How many investors do you think have left? None. In fact they keep coming in, in thousands. The copper is ours, it will go nowhere. There is still more of it down there than we are made to believe. Let’s stand together and reclaim what God gave us!
That is why countries have legislature and standards that keep investors from exploiting their resources. Keep them in check.
Not this myopic “let them go” you keep harping on about. There is a middle ground that would allow you to benefit from the resources God gave you, USING INVESTORS.
Don’t throw the baby out with the bath water.
@Nine Chale,
Only a f.ool would have expected you to say anything different or logical. The point here is not about reclaiming what is yours but the dangerous and dictatorial tendencies of the president who just wakes up in the morning and issues a decree without thinking.
One would have thought you have learned something on governance in Germany but it seems being a PF cadre is a stumbling block for you.
I thank most bloggers who have attempted to advise the President correctly. Unless he has been initiated in the ways of Kaunda’s Matero and Mulungushi reforms and nationalisation thereof, he ought to choose how to express displeasure. The President has NO mandate to interfere in operations of a private company UNLESS he is running a dictatorial and totalitarian regime like that of Mugabe.
My take is that if KCM are running unprofitably with the 1 500, they will retrench them unless Government makes a deal to subsidise their pay through various tax expenditures.
I am for taxation of mines, and heavy taxation for that matter. However, there is no place in our times to ride rough shod over private property.
Multi national corps are large undertaking with the muscle to take on governments. Kumar is not the one to watch out for but base station. I am not convinced that the President can just revoke a licence without punitive reparations and attendant lose of investor confidence local and foreign. For instance is it true that in this our great republic, any company cannot retrench even one worker without facing the spectre of losing its trading/manufacturing/mining/fishing licence? I hope you see how ridiculous that statement of revoking the licence is. Remember the k50 mealie meal threat? When was the last time you bought this dear commodity even close to the threatened price? Economics is smarter than a dictator!!
Plz pipo let the slipin cobra lay,he look tired wth hz urine bag.sata u ar dull nt for a second shuld u thnk that revocation iz the bst, i weee kolwe sata,plz thnk properly…
It is the late Levy Mwanawasa’s useless government MHSRIP who sold this giant mine to the blurry Indians for a song.
Mr Kumar should start with the indians before zambians then will known the company need redirection. Indians are getting more than zambians.
There is another option to highly mechanized KCM. ..this is to increase the tax on copper…let them mechanize and then Govt should also increase the tax accordingly. Equation solved.
Peace and Prosperity to Mother Zambia
Let’s support his excellency, the president.
KCM management should not take Zambians for granted.
Throwing 1500 employees in the street is NOT a good thing to do.
Zambians need jobs and decent ones for that matter. Zambians infact are capable of managing the mines themselves. These foreigners should not be dictating to us. Who is KUMAR in our country ? Congratulations your excellency for coming out strongly on this sensitive issue.
yes mr president,on laying off workers you have come up with your strong voice ,what is your comment on the deducted paye because the instruction came from the same government which is dared by the same kcm.
The President at it again. It seems Sata believes in sorting out problems by creating more problems. He is simply sending wrong signals to investors. Even if he was to chase KCM, which serious external investor would want to risk his money in a mine which has a lot of uncertainities? Even local investors would not want to risk their money in that mine. Already the Kwacha is showing signs of nose diving due to unclear economic policies by Sata and his govt. This will hurt a lot of local businesses and affect the purchasing power of the Kwacha. The recent salary increments awarded to civil servants will soon be wiped out. It is important for Sata to realise that his govt has no capacity to run the mine profitably if the decide to take it over. I know that his cadres cannot run KCM.
I think the president is right. They intervened on the issue of shoprite after workers were laid for a day or so but the govt intervened. Business houses complained of the minimum wage when it was introduced but they have succumbed. I think we need a leader who is tough and can speak on behalf of its citizens. I don’t think Sata is scaring away investors. When KCM took over the price was at $2000/ton of Cu. Now the price is about $7100. At one time the price even skyrocketed to even $10000/ton. Besides KCM has terminated about 600 workers through U&M. What more do they want? I have a lot of geologist friends. They are denying that copper is about to be depleted. How come other mining firms are not complaining or retrenching its workers. Besides KCM pays less than other mining companies.
I think the president is right. They intervened on the issue of shoprite after workers were laid for a day or so but the govt intervened. Business houses complained of the minimum wage when it was introduced but they have succumbed. I think we need a leader who is tough and can speak on behalf of its citizens. I don’t think Sata is scaring away investors. When KCM took over the price was at $2000/ton of Cu. Now the price is about $7100. At one time the price even skyrocketed to even $10000/ton. Besides KCM has terminated about 600 workers through U&M. What more do they want? I have a lot of geologist friends. They are denying that copper is about to be depleted. How come other mining firms are not complaining or retrenching its workers. Besides KCM pays less than other mining companies.
what a banana republic this zambia is. the president talks like he is a goon. shame!
The biggest problem with most Zambians with tuma chikwakwa degrees is that you enjoy arguing even on straight foward issues. Surely why should we be pleading for the so called investors whose main objective is to maxmize profits at the expense of our poor citizens. These so called investors have just perpetuated poverty in our mining towns. i grew up on the CB and these so called investors have reversed these towns 50 yrs backwards. Go to mufulira’s kankoyo t/ship and you will see poverty all over and yet a stone throw away there is a modern mining plant making billions of dollars. Go to Chingola bafikala and you will realise that these chaps are up to no good. Shibukeni mwenama mwe before these so calle investors leave you with only ditches all over!
Vedanta last blood
11/06/2013
0 Comments
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KONKOLA Copper Mines (KCM) employees earmarked for pruning to make the first batch of the 1, 529 are expected to receive letters today.
KCM has announced plans to retrench 1, 529 employees because of high cost of production and dwindling copper reserves at the mine.
On Monday, President Michael Sata had warned KCM chief executive officer Kishore Kumar not to go ahead with retrenchment and if he dares, Government will revoke KCM mining licence.
But the news reaching The Independent Observer is that miners will today receive letters of retrenchment.
If this turns out to be true, then KCM becomes the first investor in Zambia to overlook any Government directive including that of the Head of State.
The disregard of…
Munyelo Pweto, indeed you are a patriot.
Kumah has been deprted,now what has happened to the retreanched miners?
The KCM issue is a simple one. PF have no direction, hence they are failing to govern this self governed country.
– When Anglo left, Jordan Soko was appointed CEO for KCM. He did wonders. The mine got back on track that is why vendatta got interested and they they came.
– The debt crisis left by UNIP forced MMD to privatise because it was one of the condition that the world bank imposed on this country to qualify for debt cancellation.
– Now that the debt has been cancelled, why should we fear investers who do not respect Zambians, worse still the head of state?
– We have run this mine before when we had very few university graduattes and we can still do it. Lets show…