Demands from various stakeholders on the Copperbelt have continued on the need for the owners of Chambishi Metals Eurasian Resources Group – ERG to take a stand of either revamping the plant or surrender it to the Zambian Government to find alternative investors.
Former Mining Suppliers President Augustine Mubanga has charged that failure to which, the owners of chambishi metals should be penalised because the continued closure of the plant is tantamount to economic sabotage when the conditions are very favourable and they have failed to reopen a facility.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mubanga said the plant should be given productive life as it is wrong to continue putting it on care and maintenance or else Government should find ways and means of bringing back the plant to production.
He said Chambishi metals is an important asset that relates to the new dynamics in the mining sector. With the drive towards electric vehicles, it is the only plant in Zambia that is able to process exclusively cobalt and copper, hence demanding for its urgent reopening as there are various benefits that the country can accrue from an investment of such magnitude when in full operation.
Stakeholders in the mining sector and residents of Chambishi have in the last three years continuously advocated for the re-opening of Chambishi Metals whose other operations include treatment of cobalt/copper sulphide/oxide concentrates, and cobalt carbonate/hydroxide materials.
The continued closure of Chambishi metals has continued negatively affecting the construction sector as the availability of gypsum, which this mine used to produce, affects locally produced Cement prices. Cement is a key determinant of the cost of brick and mortar construction.
Mubanga said the continued closure of Chambishi metals is tantamount to trying to destroy the economy of the country because they are denying an opportunity for people’s employment, businesses, and the country revenue that it may have or may accrue from the asset. “They are also denying the host towns from benefiting from corporate social responsibility projects.” He added.
ERG put Kalulushi District-based Chambishi Metals on care and maintenance in January 2020 when over 200 workers were sent home due to lack of feedstock to continue sustaining its operations and up to date operations have not yet resumed. The regulations for tax on imported feedstock was lifted but the plant remains closed.
Chambishi Metals when operational, is the country’s largest producer of cobalt and gypsum, a key ingredient in the manufacturing of cement and key for enabling growth of the construction sector.
