The announced shut down and placement on care and maintenance of Chambishi Metals threatens to impact the construction industry negatively through price escalation as the company is the country’s major producer of gypsum, a key ingredient in the manufacturing of cement.
Chambishi Metals, which is now owned by Eurasia Resources Group – ERG produces gypsum which is used in cement manufacturing which is a very important ingredient. So if Chambeshi Metals has a problem, the cement price will most likely go up because the manufacturers of cement have to resort to imports from South Africa and else where.
The Mine Workers Union of Zambia – MUZ and Chambeshi Metals have been meeting with a view to compel the owners of Chambishi Metals not to close the operations. ‘‘Unfortunately, we had prolonged meetings with management of Chambeshi Metals where they informed the union that the company will be placed on care and maintenance beginning month end of January owing to the fact that the company has failed to find feedstock to run the metallurgical plant,’’ said MUZ President, Joseph Chewe.
He described the development as ‘‘very unfortunate’’ because the community of Chambeshi will be crippled economically. He also disclosed that management indicated that the plant might not be re- opened in the next two years.
However, the MUZ has demanded that ERG hands back its license so that government can find a serious investor. MUZ President Joseph Chewe argues that the investor has not been pumping money into the firm to boost operations.
He disclosed at a media briefing on January 20 2020, that only 28 workers would remain maintaining the mine, while 229 others have since been retrenched and would leave the mine at the end of this month. Managers are expected to leave immediately.
