MINISTER WARNS MINES

… engaging foreign suppliers is illegal, Lumwana and Mopani told

LUMWANA Copper Mine and Mopani Copper Mine are abrogating the Mine and Mineral Act by engaging foreign suppliers and government will enforce the law in the best interest of Zambians, Minister of Mines and Mineral Development Richard Musukwa has warned. The minister said the two mining giants must know that going that trajectory was an offence as it was against the laws in the mining sector. He said, “The Mines and Mineral Act is clear that local suppliers and contractors must be given priority in the execution of work in the mining sector. “There is about US$4 billion in mines for suppliers and contractors, we shall ensure that locals take centre stage so that they can have a meaningful share,” Mr Musukwa said. It is believed that Lumwana has single sourced a company called Tradecorp to do all supplies for the mine including basic things such as bolts and nuts. It’s likely that contracts for local suppliers will be terminated because their duties will be rendered redundant by the engagement of Tradecorp which is a onestop supplying company based in South Africa. And Mopani commenced a programme to optimise its mining contracts, claiming that the contract optimisation process is to improve workplace safety and operational performance. This programme is also likely to reduce the participation of local contractors thereby increase that of foreigners. “So if Lumwana and Mopani are in that trajectory, we have already indicated to them that they are breaking the law and multinational companies of their magnitude must obey the law of the land. The law of the land is very clear, locals must be given preference at the expense of foreigners. Mining houses should not play games with government because we shall act accordingly,” Mr Musukwa. This time around, the minister said, Government would not entertain drama from the mines, they should ensure that they fully contributed to the economic development of the country. The minister said the two mines should cooperate and take capacity to local suppliers and contractors. He also said the engagements of foreign suppliers was a scheme to avoid tax avoidance and short chain locals which would not be tolerated. “As Zambians we shall not continue with the route of apologising to multinational companies. They are the ones now to obey what they have found,” he said. And I am calling on Zambian suppliers and contractors to ensure that they take their place in the mining industry. He encouraged to stand firm and get rid of all foreigners that had been engaged by some mining houses.