The continued closure of Chambishi metals is negatively affecting the construction sector as the availability of gypsum which this mine used to produce, affects about 5 to 10% of locally produced Cement prices. Cement is a key determinant of the cost of brick and mortar construction.
Key stakeholders in the mining and construction sectors have challenged government and ministry of mines to prioritize the re-opening of Kalulushi District and Chambishi township-based Chambishi metals, a key mine that produced cobalt and gypsum in Zambia.
A mining expert has told the Zambian Business Times – ZBT that it is unfortunate that the issues around Chambishi metals have not been resolved leading to loss of much needed employment opportunities for citizens as well as government missing out on the opportunity to earn tax and non revenue.
Eurasian Resources Group – ERG put the mine on care and maintenance in January 2020 sending over 200 workers home due to what at the time they blamed as “lack of feedstock” to continue sustaining its operations.
Simukonda said it was not right to continue putting a processing plant on care and maintenance when there are enough materials in the country to be processed for both copper and cobalt. He said Chambishi Metals is a significant mine as it was the only place where significant cobalt was being processed in Zambia.
“That mine is a very significant and if government is not going to prioritize reopening the mine, then I don’t know what they are doing.” He said. “Cobalt price is about 3-4 times the price of copper now but if we can’t look after our own property or improve already existing system of cobalt processing, then I don’t know what we are doing.” the mining expert told ZBT.
He said from the onset, Chambishi metals was not supposed to be closed as it is supposed to be one of the big mines proving employment to the local communities and contributing to government revenues for the country. Government should prioritize this and press the owners and the management to consider reopening Chambishi metals.
Chambishi Metals proposed putting the operations on care and maintenance for two years because of failing to secure concentrates to keep the company going. The problem had been compounded by the some taxes that were once imposed on imports of concentrated from Democratic Republic of Congo (DRC) which were later removed.
The other challenge is that the mines based in the DRC were reluctant to export their concentrates after establishing their own smelters. Chambishi Metals is the country’s largest producer of gypsum, a key ingredient in the manufacturing of cement.
Zambia is a key Cement and Lime producer which need to source for gypsum. In the current state of affairs, cement companies resort to importing the gypsum component, which could impact final costs by about 10 to 20% depending on the prevailing exchange rates and cost of transportation. See other articles on Chambishi metals https://zambianbusinesstimes.com/govt-urged-to-seek-ways-to-re-open-chambishi-metals/
Other articles on Chambishi metals are https://zambianbusinesstimes.com/erg-challenged-to-re-open-or-surrender-chambishi-metals/ and https://zambianbusinesstimes.com/cement-price-hike-linked-to-shortage-of-gypsum-closure-of-chambishi-metals/
