Saturday, September 28, 2024

Government should call for a Mining Indaba after Mopani Ignores the directive not to shut down the Mine

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The Centre for Trade Policy and Development is concerned with recent developments in the Mining sector and is calling for dialogue between the government of the Republic of Zambia and the Mining Players.

CTPD Executive Director Isaac Mwaipopo says the way Mopani Copper Mines has defied Government’s directive not to place the mine on care and maintenance is one clear indication of a deteriorating relationship between the Government and some players within the extractive industry.

Mr Mwaipopo said there is urgent need for the Government to consider calling for a local mining indaba so as to deliberate on several matters affecting mining.

He said the deteriorating relationship between the Government and some players within the extractives sector can be attributed to several factors among which might include the recently introduced tax changes that have not been welcomed by several mining players.

Mr Mwaipopo added that are also growing concerns and fears among mining companies on the decrease of prices for commodities such as Copper on the International market due to the COVID -19 pandemic.

“As CTPD, we think there is need to get to the discussion table and work around resolving the issues that may still be affecting both sides in the interest of development. Although, both parties have legitimate concerns, we think that resolving these challenges is not something that can be done by exchanging positions in the media”, He said.

Mr Mwaipopo has urged Government and the mining players to address their grievances through the right channel and amicably find a solution that will be in the best interest of both parties.

He said this process could also be opened to include other experts in the industry that would be interested in rendering their services as a way of helping to improve the deteriorating relationship.

Mr Mwaipopo said the Civil Society equally stands ready to render any support towards ensuring that this dialogue takes place because failure to address these problems could negatively impact the country’s economic development.

21 COMMENTS

  1. Mopani likes to arm twist, Richard Musukwa is childish so nothing good can come out of such a combination. Zambia Business Times reports that Mopani isn’t happy about the failed CEC – Zesco power deal, it’s the main reason for their actions. So I agree with your call for dialogue because both Zambia and Mopani stand to lose. There are others who can run that mine well

  2. Talk show???? No no no.. we need serious actions not spending money on some indaba. This is not time to talk but act.

  3. No way. It’s not a matter to decide like that. Wht does the law say? In this case Zambian law not really one of the factors. Development agreement, assuming it’s still in force, is the one that counts.

  4. No sane serious business entity would be seriously talking to PF stinking charlatans! See, behind closed doors your president and his goons are shacking down these same mines for millions and you want them to dance to the tune of criminals who know nothing about business but only theft! No ways!

  5. Further, just how does the government expect these businesses to continue paying employees salaries for long for doing nothing? Did Lungu speak to businesses before extending his quarantine? Now he wants them to continue employing with zero production and no revenue. If this is what Dr Ng’andu is advising you, bafi.kala kunya!

  6. Guys governance is a thing. Even if you have a paradise — which most of our earth is — if your governance structures suck you will keep battling demons of corruption, incompetence and asking the wrong questions. This administration must really, sincerely sit up. We are heading nowhere like this.

  7. It’s always important to look after the “Goose” if you want “Golden Eggs.” PF has created too many uncertainties not just for the Mining industry but the entire Economy! PF has unfortunately Politicized business. Politics and Business don’t mix well! The Root cause of Zambia’s Economic Problems is bad Human Resource Practice! Copper and Mining is Zambia’s life line and we can’t afford experimenting with Ministerial appointments. ECL was wrong to appoint a teacher in Musukwa to run mines when we have many highly qualified Mine experts ECL should have appointed Mines Minister. What ECL should do is:
    1. Resign. If he doesn’t want to resign, he should do the following.
    2. Fire Richard Musukwa and appoint a Subject Matter Expert as Minister.
    3. The new Minister should sit down…

  8. 3. The new Minister should sit down with the Chamber of Mines and study the business case for not only Mopane but all Mines in light of Supply Chain challenges COVID 19 presents! A win-win way forward should be worked out which does not disadvantage the Investor, Employee and the Treasury. Let them also study how the failed CEC/ZESCO BSA renewal impacts mining operations.
    4. Cease all hostilities and threats and learn to Dialogue! Unilateral Mine Grabs are Costly for the country in the long term and are very damaging to the country’s Investor Confidence rating! We saw how Zambia dropped on the rankings.
    5. We also need to learn to argue using numbers. Numbers don’t lie! The only language businesses speak is numbers! We should be insisting on assessment of the company’s Financial…

  9. 5. We also need to learn to argue using numbers. Numbers don’t lie! The only language businesses speak is numbers! We should be insisting on assessment of the company’s Financial Report. It’s not wise to force a loss-making shop to remain open!
    6. We need to think beyond COVID 19 and see how we can build local capacity to keep lines of supply for our mines in case of future lockdowns because COVID 19 won’t be the last threat to Value Chains!

  10. When Edgar comes to Kitwe he doesn’t mingle with the Chambers of Commerce and Mines, he mingles with bena Spax, Jerabos and other nincompoops we don’t expect him to know anything beyond the level of his company. We can’t expect anything good from him. KCM was taken over in cowboy style with guns blazing, don’t ask me what the Liquidator is doing. It’s a story for another day

  11. At Mwine Mushi, you have said everything I wanted to say and more. Let me add, do we remember Davies Mwila saying we (the PF) have allocated a team to deal with the ZESCO and CEC impasse compromising of Mwanakatwe amongst others.
    And do we recall the letter written by ZESCO MD to Mwila saying they would pay the party some money.
    All in all, you cannot force a business to keep operating when it’s making a loss, add to that the murky political interference, probably they wanted kick backs from a struggling company.

  12. No need to be concerned. Concern has never solved a problem. Meanwhile the miners continue to get paid so nichani please? We are all for dialogue and don’t mind indaba. I see a comment above saying pf does not dialogue. I think you will find that it is opposition who have shunned our calls for dialogue on many issues in the past years . Kz

  13. Do the mines even listen to these ministers. The mines are at another level, that train is in motion. Forget, no indaba will stop this. It confirms failure virtually in all departments by those you entrusted, Wether its mealie meal price, payment to agro dealers, power supply, inflation, reseves, exchange rate, fuel price. ,So what will these failure point at, for those still in denial, and for the avoidance of doubt, get it from me, this is how failure looks like, Ati we are ruling LOL

  14. Glencore has more money than the entire GDP of Zambia. Why would they even listen to the likes of Musukwa. They cannot keep sustaining losses without justification. If they keep their promise to continue paying their permanent staff their base salaries then it is not all that bad. After all it is the staff who matter. The only losers are the big PF connected contractors who transport the copper to South Africa. They will not be able to extort any more money out of Mopani during this period. Big organisations around the world, including Rolls Royce Aerospace, have temporarily laid off some of their workers. How can that be avoided in Zambia?

  15. Hey Nostradamus, who would you rather is boss at CTPD Bernadette or Mwaipopo? The lovely lady actually heads PRMC or something like that …

  16. Which mines minister jaime? That Guy is a teacher misplaced. Bring back magande and situbemko musokotwane to help this handicapped govt.

  17. @ Mwine Mushi..YOU HAVE EXHAUSTED EVERYTHING…I SALUTE YOU….BUT THESE “GOONS” CAN NOT UNDERSTAND A THING.

  18. Don’t see any possibility of dialogue here, for some stakeholders intimidating mining investors is policy. Some stakeholders even say that the copper is ours, well do you also own the 3billion dollars that Glencore has invested?
    I see both the economy and policy makers collapsing together and then we start to rebuild yet again, we are good at destroying our own and rebuilding, ain’t we? Much like the proverbial frog which takes two steps up the well and three steps downwards and is surprised that it never succeeded in coming out!!

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