The Zambia Chamber of Mines has appealed to the Government to diffuse tensions and expedite negotiated resolution of the ZESCO-Copperbelt Energy Corporation impasse
For some time now, the Zambia Chamber of Mines has bemoaned the worsening instability of the mining operating environment that has led to a spreading perception of increasing risk in the industry.
Chamber of Mines Chief Executive Officer, Sokwani Chilembo said says the recent passing of statutory instrument number 57 of 2020 has needlessly re-affirmed the perception presented by the country’s decline on the 2019 Fraser Institute Mining rankings and Oxford Economics-Control Risks Africa Risk Reward Index.
Mr Chilembo said the imposition of access and commercial terms on private infrastructure at levels that tip Copperbelt Energy Corporation into operational and financial distress have echoed around the mining world.
He said this is an unfortunate outcome for what should be a national champion given the home-grown CEC brand’s undeniable delivery of the highest standard of service and efficiency both locally to the Copperbelt Mines, and regionally as part of the SADC power pool for two decades.
“The stalled negotiations and escalating tensions arising from the ZESCO-CEC Bulk Supply Agreement (BSA) can still be resolved in an amicable manner that does not further deteriorate Zambia’s stature as an energy and mining investment destination, said Mr Chilembo.
He has noted that ZESCO being a fully state-owned enterprise, almost a quarter of CEC’s shares being ultimately held by the state, and a significant portion of its shares publicly traded on the Lusaka Stock Exchange, makes a homegrown mutually agreed outcome as essential to keeping industry going as it is to restoring diminished confidence and allaying widening fears of expropriation.
Mr Chilembo said, if Government can come in as the ultimate steward of value to facilitate frank and level negotiations between its two investee companies; a resolution can be found that keeps both businesses afloat while containing any damaging spill-over effect on their corporate and domestic client bases, not to mention potential disruption to the Copperbelt mining industry.
He noted that the alternative outcome will push the high cost of capital for cash-strapped mining operators, mining suppliers, mining contractors and also potential energy investors even further out of reach than it already is.
Mr Chilembo said this will delay and put at risk the crucial pivot from the current decline back to growth and a million tonnes per year of Copper output that the economy so badly needs.
Further Mr Chilembo said the delay reduces the fortunes of us all in the midst of the global COVID-19 pandemic’s accelerating recessionary effects.
He said the Industry earnestly petitions government to take the macroscopic and long-term view to steer the energy and mining sectors clear of this avoidable obstacle to recovery.
Mr Chilembo added that the COVID-19 pandemic has placed significant challenges on businesses – mines are no exception. The actions expected from Government are ones that assist business bounce back rather than compromise it.
We are giving this issue priority and can tell you that there are some opposition forces at play who are bent on disrupting our country. However be rest assured that we will deal with these negative forces. Kz
Yes you are saying good things we need to start learning.
The Jerabo also now believe that PF want to grab UPND sponsor CEC, and give it to their PF sponsor Zesco. All these is because of Power Dynamos (CEC) captain Kennedy Mudenda and Zesco United captain Jacob Banda.
Look at the names, do you have any connections?
Stop being childish. You want to bring tribalism into everything
Zesco supplies power to First Quantum Mining in N-W province. I’m not aware of any complaints about the quality of power supply to this company. Does absence of an intermediary mean that FQM buys power at more favourable terms? Can the Chamber of Mines can clarify.l? If the intention is to nationalize CEC assets, acceptable compensation should be agreed so that there’s finality to this issue. After all, the future of mining may not be so bright on the Copperbelt.
@ Nemwine: u too, jst like Kaizer, Tayali, Sunday, KCM etc seem to be jst hallucinating. Do u know who CEC is? Stop thinking in lines of a middleman in Katando street or the rental collectors at kamwala market. Here we talking of a middle man in terms of BP, Caltex, Total( all these are oil middlemen). Now put it in context of Power generation, even Zesco itself is a middleman for Maamba callories. So i guess by now u shd be able to stop dreaming that ka PF has the capacity to close CEC.
If am to be honest with u, CEC in Zambia is bigger than most of these mines that u know, perhaps including KCM itself. We can bet.
@ Vote him out… CEC is the worst middle man . Yes BP , Caltex etc are middlemen and essential middle men. CEC is a maggot feeding on Zesco. We do not need them. We can buy directly from ZESCO . What is your problem kanshi? Kabiyeni uko!!!!
VHO @ 4: Everything has a price. If the price is right from GRZ, I see no reason why CEC should not sell.
Too late, deed is done.
Why is it that most fellow bloggers can not comment without calling names others on the comments? The intent of comments loose value when coupled with insults. This is the hindrance to development.
This is real crazy. Why is the government enjoying the fight between ZESCO and CEC? Why hasn’t the government sorted this thing out years ago? Why has it waited and waited and waited so that it can watch this fight??
CHAMBER OF MINES CEO YOU ARE A DISGRACE: YOU ARE
GRZ HAS ACTED TO STOP THE SHAMELESS RAPE OF ZAMBIA BY THE CLIQUE THAT IS BEHIND CEC
AND WHO ARE RABID JATERS OF PF
CEC HAS BEEN ROBING ZAMBIA FOR TOO LONG
IT HAD TO STOP
MEANT THE CLIQUE THAT IS BEHIND CEC ARE RABID HATERS OF PF
Surely, Zambians need training in Conflict Management! Why do Zambians hate each other over matter? Is not life more important than matter? As long as you believe in Evolution’s survival of the fittest, you will always have strife. We must begin to learn to dialogue!
Really Zambian needs to leaning that promote a country.