SEVERAL stakeholders have commended Government for facilitating the re-opening of the Munali nickel mine under a new investor, Jinchuan Limited.
These include the Economics Association of Zambia (EAZ), the Mine Workers Union of Zambia (MUZ) and a local traditional leader.
The EAZ has said the re-opening of the mine is a good sign as it is an expression of confidence in the Zambian economy.
EAZ president Mwilola Imakando said in an interview yesterday that Zambians will benefit through jobs that will be created, while Government revenue will appreciate through tax collection.
“It is a good sign if a resource that was idling begins to contribute to the economic development of the country. The resource will create employment for the people, it will also make profits and in turn pay tax to the Government,” Dr Imakando said.
He said the investment into the Munali Nickel Mine by Jinchuan Limited sends a signal to would-be investors that Zambia has a positive investment climate where they can recoup their expenditure.
“As EAZ, we are happy when a resource that was idling begins to contribute to the economic development of Zambia,” he said.
President Banda re-opened the Munali Nickel Mine in Mazabuka on Friday, promising that Government will continue to encourage value addition to copper, cobalt and gemstone products to promote growth and diversification in the mining sector.
The MUZ has commended President Banda’s call and directive that each mining industry be monitored to ensure that respective local communities derive benefits arising from the investments.
MUZ general secretary Aswell Munyenyembe said in Ndola yesterday that President Banda’s statement is welcome.
“As a mine union we welcome President Banda’s pronouncement because this is what we have been advocating; to see that people benefit from the investments in various communities,” he said.
He said mining companies should demonstrate corporate responsibility by ploughing back some of their profits into communities they operate in.
Mr Munyenyembe said the benefits from the mining industry should benefit all stakeholders in the industry that include the employees, mine suppliers and contractors.
He said Government’s policies in the mining industry are still attractive to investors.
“Most of the mines that closed down have re-opened. This is as a result of good policies by Government in the industry,” he said.
He said, however, that the removal of windfall tax should be reconsidered, as the country will not benefit much from the mining industry.
He said copper prices on the international market are substantially increased to justify windfall tax.
“The proceeds would have been used for repairing roads that are being damaged by heavy trucks ferrying copper in and out of Zambia,” he said.
President Banda directed Minister of Mines and Mineral Development Maxwell Mwale to closely monitor the performance of each mining company so that local communities derive benefits from the investment in their areas.
Chief Mwanachingwala has said he is glad that the people of Mazabuka will benefit from the nickel mine through job opportunities and royalties that will accrue to the local community.
“We are happy because the country will benefit in terms of job opportunities and poverty reduction among our people,” Chief Mwanachingwala said in an interview.
The chief commended Government for its commitment to uplifting the standards of living of the people through job creation.
He pointed out that the Munali Nickle Mine is the second one being re-opened after Luanshya Copper Mines on the Copperbelt; both of which had been shut due to low metal prices during the global economic recession last year.
Chief Mwanachingwala attributed the re-opening of the mines to Government’s commitment to poverty reduction and making Zambia a preferred destination for investment.
“We would like to thank the President for wooing investors to come to Zambia. We hope that Government will attract more investment into the country so that Zambia can become self-sufficient,” Chief Mwanachingwala said.
He also commended President Banda for directing that the local communities should benefit through royalties from the mining company.
Chief Mwanachingwala hopes that this will translate into the construction of schools and an institution for tertiary education.
He urged the mining company to give preference to the locals when employing people for the mine.
He said, however, that this did not mean that people from outside the province should be excluded.
The Chinese company is considering upgrading production from 900,000 tonnes of ore to 1.2 million tonnes by 2012. This will in turn raise job opportunities from the current 345 to 450.
[Zambia Daily Mail]
We always wait for handouts!!!!why can;t govt open people’s eyes on the benefits of running mines..
Nickel is very poisonous. I hope these people realise. I am sure safety and environmental considerations will not be at the top of the Chinese owners’ agenda.
congratulations for jobs
but ….where are the promises of grz?
now Jinchuan above 70%
crumb for grz (ZCCM-IH) among other shareholders
Minister of Mines and Minerals Development Maxwell Mwale said Zambia will target a stake of between 25 to 35 percent to have influence in decision making.
to have a bigger say in running mines and prevent mine closures…. With a crumb ???
Chinese fine words and a crumb…. It’s surely better than 35 percent… 🙁
#1 Can’t ??? rather….. doesn’t want…
why grz does not promote this book : Alastair Fraser et John Lungu, « For whom the windfalls ? Winners and losers in the privatisation of Zambia’s copper mines », 2007 ???
Why grz does not denounce foreign companies which kept money instead of giving minorities interests to zccm-ih… just owing for its stakes
Eg Kansanshi
the amount of minority interest due to zccm-ih is overtaking $300 million, but Kansanshi paid only 3 m$ in 2009
and what does grz??? Nothing… 🙁
FQM Conference Call Tuesday, August 11, 2009
Link, remove *
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page 13/14
——
Operator
Thank you. The next question is from Sylvain Brunet of BNP Paribas. Please go ahead.
following 1
Sylvain Brunet, BNP Paribas
Yeah, hello everybody. I just (inaudible) that you made payment to the ZCCM (inaudible), um, my question is the following: How do you plan to finish the future payment of your (inaudible) debt? Yeah, if you can give me a reply on that.
Clive Newall, President
I’m sorry, Sylvain, I didn’t really catch all of that. Could you repeat that question for me?
Sylvain Brunet, BNP Paribas
Yeah. I saw on the press that you made payment to (inaudible) of $3 million. Is it right?
Clive Newall, President
$3 million…what, in…?
Sylvain Brunet, BNP Paribas
Dollars.
Clive Newall, President
Yeah.
Sylvain Brunet, BNP Paribas
Yeah, regarding the amount of our minority interest debt, ah, what will be the future impact of the payment? Now this one (inaudible) to be more payment, it could be impact on the cash balances?
Clive Newall, President
Duane, do you want to answer that? Minority interest payments?
Duane Lo, Financial Controller
This was just a dividend that was agreed to between, um, at the Kansanshi operation. We don’t really have any guidance going forward on when or how much of a dividend we’re going to be paying any time in the near future at this point.
Sylvain Brunet, BNP Paribas
(Inaudible) support of (inaudible) between the Zambian government regarding the tax and something like that?
Duane Lo, Financial Controller
Sorry? You’re still referring to the $3 million?
Sylvain Brunet, BNP Paribas
Yeah, no, not this payment but the future payment, because I mean, ah, is it for them a way to say, yeah, we can give you back the windfall tax amount that you recurred, (inaudible) back (inaudible) give more of the minority interest or it’s not part of deal?
Duane Lo, Financial Controller
No, that’s actually a separate issue.
Sylvain Brunet, BNP Paribas
Okay. Okay. Just to finish, um, I saw from the press that they want to increase Zambian, um, their stake in Zambian mine; is it something that they really want or…? Do you have any—
Clive Newall, President
Sylvain, it refers really to those mines that were shutting down and laying lots of people off. So a number of operations like Luanshya have effectively been re-privatized, and when they re-privatized it, ZCCM has retained a bigger stake than it did in the original privatization. They’re not going to buy, or it’s unlikely that they’d want to buy whatever number it is they’ve been talking about.
Sylvain Brunet, BNP Paribas
Yeah. Could they not extend like, because they could say like they get, um, I saw like you get 300 million minority interest that, ah, they couldn’t say like we could exchange this amount to more stake or you don’t… What do you think of this?
Clive Newall, President
There’s been no discussions.
WHY there’s been no discussions !!
$300 million for Zambia!!
RB and his clique…
kick in their backside !!!