Mopani To Restart Operations
Mopani Copper Mines is expected to restart operations on Wednesday of this week. The news comes following discussions between the Government the company after the Government objected to a decision taken by Mopani Copper Mines to place the mine on care and maintenance.
While the mine’s Public Relations Manager Nerbert Mulenga has confirmed plans to place the operations on care and maintenance after 90 days, during the time between now and then Mulenga has stated that the company is committed to engaging with the Government regarding potential solutions to the challenges face by the mine.
In April Mopani shut its mines, sending home all workers and terminating employment for contractors as a result of the challenging operating, regulatory and macro-economic environment.
The closure was expected to last for three months and was effective as of Wednesday April 8. During this time permanent employees were to continue to receive their base salaries. The company also confirmed that employees and their dependents would also continue to receive healthcare.
However, government objected to the plans and refused to grant Mopani’s request. The government issued Mopani with a 7 day ultimatum in which the company had to demonstrate to government why it should not lose its licence for alleged breach of provision of the Mines and Minerals Act and the Employment Code Act.
The Zambia Chamber of Mines warned of the possible consequences if the Government seized Mopani Copper Mines Plc. According to the Chamber’s President Goodwell Mateyo investor confidence is already at an all time low but could fall further still.
Mateyo also questioned how government will fund the takeover given low levels of reserves.
Speaking on the recent case of Konkola Copper Mines (KCM) he stated, “You see that there are challenges with KCM, their production figures are nothing to write about. [The call} It is not viable; it is not even something that someone can even be mentioning at the moment. I am not saying it is impossible, but the economic consequences will be to ghastly to even contemplate! To increase production, you need to make significant capital investment into any mine, and as a government, we don’t have the capacity to make the sort of investment that is required. It means, then, that we are taking precious resources from health, education, social (sectors) to take them into mining production; we simply don’t have the luxury to do that.”
Following the dispute the CEO of Mopani Copper mines Nathan Bullock was stopped and refused exit as he tried to depart the country via Kenneth Kaunda International Airport.
Mr Bullock was told he must stay in the country until the dispute between government and Mopani regarding the more to put its Nkaka and Mufulira mines on care and maintenance has been resolved. According to Minister for Home Affairs Stephen Kampyongo Mr Bullock was transferred to Kitwe in order to answer questions concerning closure of its sites. Kampyongo claimed that Mr Bullock had been advised to stay in the country for the time being.