UNRAVEL MOPANI PUZZLE

CAPTAINS of industry, citizens and other interest groups are keenly waiting to see how Mopani Copper Mine’s notice to suspend operations will pan out, bearing in mind that the 90-day period is coming to an end this month.

Yes, the mining firm gave a 90-day notice to place Mufulira and Nkana assets on care and maintenance, citing slowed down business in the wake of Covid-19 outbreak and plummeting copper prices among other reasons.

If this action is effected, thousands of workers will be thrown onto the streets, including employees from contracted companies while business for mine suppliers will collapse.

The entire economy will be affected.

Mining remains the mainstay of Zambia’s economy, accounting for over 70 percent of the country’s export earnings.

While Government has embarked on diversification of the economy to manufacturing, tourism, energy, construction and agriculture, mining still leads as the main export earner since independence.

Therefore, the mining sector needs much more nurturing on a win-win basis with investors so that it remain sustainable.

Recently, Government commissioned a high-level team in Kitwe to carry out a thorough assessment of operations at Mopani, but to-date the outcome of that assignment has not been announced.

The hype with which the high-level team was touted, simply fizzled out and now uncertainty has set in.

Further, Finance Minister Bwalya Ng’andu led a team which included his counterparts from Mines, Richard Musukwa, Labour and Social Security, Joyce Simukoko, host Japhen Mwakalombe to establish the exact cause of the problems at Mopani.

The country is yet to get the results of this important assignment undertaken by ministers.

Meanwhile, the clock is ticking away!

Trade unions in the mining sector and contractors have cried blue murder over the silence on Mopani, but to no avail.

The Glencore International-run firm has not indicated a reversal of its decision to place Mufulira and Nkana assets on care and maintenance, meaning the suspension will be effected.

In fact, Mopani has been running monthly contracts with some selected Zambian firm, a clear indication that operations at the giant mining house will not last long.

The first announcement to suspend operations at the two units was made in April, but after Government intervened over procedure, the mining firm backpedaled and tendered a fresh 90-day notice in May.

This invariably means that the notice is expiring soon and Mopani may pack up and leave.

The prolonged impasse is not healthy for the mining and other industries as this could lead to speculations.

Therefore, Government should update interested parties and the country as a whole on the way forward regarding this giant investment.

Initially, reports emerged that, in fact, the malaise arose partly because Mopani had employed a contingent of expatriates, who were paid huge salaries when highly qualifiedZambians could do a better job in those positions.

Also in the public domain were reports that the same expatriates, who had a dim idea of Zambia’s mining terrain, were recommending wrong and expensive operation systems and methods.

Additionally, the same expatriates preferred foreign contractors to do the jobs in the mines which locals could do at lower rates.

Government must shed more light and inform the nation on the status quo!