There is urgent need for the government which is now the majority owner through ZCCM IH to resolve the recapitalization and financing needs of Mopani Copper Mines, the major anchor company supporting the economies of both Kitwe and Mufulira on the Copperbelt.
The Mine Union of Zambia-MUZ- are asking for the government to find an urgent solution to the issues surrounding Mopani Copper Mine which had indicated that it needed financing of about $300 million to continue with its operations after credit and financing lines secured under former owner Glencore were dropped.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, MUZ President Joseph Chewe urged President Hakainde Hichilema’s administration to look at the issues surrounding the Mopani Copper Mine as they require urgent solutions.
Chewe explained most workers in some contracting companies have not been paid for six months now, a situation he said it brings serious concerns and confusions to the union and its members. The MUZ President told ZBT that most of the Union members have families to look after, hence the need to look at this matter as urgent.
He said urgent attention to the issues surrounding Mopani will also help the general business environment on the Copperbelt as the two mines, Mopani and KCM are the key Companies which several communities depend on for their survival.
Chewe said MUZ main interest is to safeguard the mine and saving jobs, adding that what was needed was is to see which model Mopani would take since departure of Glencore. “After Glencore decided to abandon the mine at a difficult time, we wanted first to safe guard the mine and the jobs. Had it not been for that, the mine could have been closed by now and there was going to be no Mopani to talk about today.” He said.
Due to the continued delay in finding lasting solutions for both Mopani and KCM, the liquidity situation on the Copperbelt has continued to deteriorate, with most businesses and people complaining of no money in circulation.
Zambia had relied on the Copperbelt from time of independence until the mines in the North Western Province came on stream about a decade ago. The Copperbelt has a size-able population, boasting of housing key towns and cities of Zambia such as Kitwe and Ndola. The region remains a key mining and industrial hub of Zambia which needs urgent and special attention from government. Efforts to get a comment from ZCCM IH proved futile by time of publishing.
