The Zambia Congress of Trade Unions (ZCTU) says it strongly supports calls opposing Konkola Copper Mines (KCM) Strategic Partner Vendata from acquiring an additional 28.4 percent shares in the Mining Company.
ZCTU Deputy Secretary General Ian Mkandawire said giving Vendata any additional shares in the company above the 51 percent which it currently had, would deny Zambian’s a chance to effectively partcipate in the managment of the Zambian economy.
Mr Mkandawire said Government must instead float the 28.4 percent shares to the Zambian people as a way of empowering local people to actively participate in the managment of local resources.
Mr. Mkandawire in a statement to ZANIS in Kitwe today said the concept of the Citizens Economic Empowerment Commission would only be beneficial to the Country if Zambians were allowed to take up economic opportunities such as taking over the 28.4 percent shareholding in KCM currently being held by the Zambia Copper Investiment Holdings (ZCIH).
He said government was aware of a number of controversies surrounding the mining industry particularly as regards the various agreements which had attracted calls for revision.
He added that Government should not bring about controversy by allowing Vendata to acquire further shareholding in KCM at the expense of indigenious Zambians.
He said his union was concerned over lack of social responsibility by current Mine owners which needed to be addressed adequately by off-loading some shares to
Zambians for direct attention towards the improvement of communities in which these mining companies are situated.
Mr Mkandawire said his union stands strongly opposed to any further acquisation of shares by Vendata in KCM and that Government should give serious consideration to the matter.
Meanwhile, Zambia’s total finished copper output will hit 1.2 million tonnes in 2009, against a previous forecast that said the country would produce 1 million tonnes in 2011, a senior industry official said.
Tim Henderson, the Chief Executive Officer of Mopani Copper Mines (MCM), said production of copper would rise faster than expected because the life of the vast copper and cobalt mines had risen due to exploration and modern mining technologies.
“Copper Production has increased from 257,000 tonnes in 2000 to over 500,000 tonnes in 2006 (and is) projected to reach 1.2 million tones by 2009,” Henderson said late on Tuesday.
President Levy Mwanawasa said in April the country was set to double its annual copper output to 1 million tonnes by 2011 following discovery of new reserves.
Henderson, who was speaking in Livingstone, 480km south of Lusaka at a Zambia economic and business forum, said the southern African country would have to invest in infrastructure such as roads and energy to handle larger volumes of copper.
“Zambia is not the only country working hard to attract FDI (foreign direct investment) in mining… we should therefore not relax. Privatisation has been a great success and boosted the economy through huge investments and job creation,” he added.
Zambia’s state run copper mines were privatised starting in 1998 when Chinese investors purchased the Chambishi Copper mine.
Henderson also said Mopani had in principle agreed to renegotiate development agreements with the government, which plans to raise mineral royalties to 3.0 percent from 0.6 percent and corporate tax to 30 percent from 25 percent.
“In principle, mining companies are willing to renegotiate the agreements. Any future change in the rate of mineral royalties should be linked to copper prices,” Henderson said.
Henderson was giving Mopani’s stand on impending increases in taxes for the mining firms for the first time after Konkola Copper mines, Zambia’s largest copper producer, said in June it was willing to pay the higher taxes.
Some foreign mine owners said the taxes would be too high.
Mopani, which operates the Nkana mine, Mufurila copper mines and the Mufulira Smelter is the country’s second largest copper producer. MCM is a joint venture of Canada’s First Quantum Minerals and Glencore International AG of Switzerland.
Mwanawasa has been pushing for greater foreign investment, including Chinese, in the country’s copperbelt region in a bid to modernise ageing mines and raise exploration and production.