. Yaluma

By MOFFAT CHAZINGWA –
Government has demanded the need for all mine investors coming into the country to create not only employment but decent jobs for the locals.
Meanwhile, the Government has reiterated that it has no plans to nationalise Konkola Copper Mines (KCM) because of the mining-giant’s debt liability of US$1.6 billion.
Mines, Energy and Water Development Minister Christopher Yaluma called for an end to short-term contract jobs stressing that only contracts stretching from one year and beyond would be tolerated.
The minister said this in Kitwe on Monday night when he held an interactive meeting with the three mining unions, namely the Mineworkers Union of Zambia (MUZ), National Union of Miners and Allied Workers (NUMAW) and United Mineworkers Union of Zambia (UMUZ) at Lunte Lodge.
Mr Yaluma said it was Government’s resolve to ensure mineral wealth in the country translated into increased benefits for the general citizenry.
He emphasised that corporate social responsibility (CSR) projects by mining companies would also have to be in line with the needs of the people in the host communities.
MUZ general secretary Joseph Chewe earlier complained that the trend by mining firms to engage contract labour was causing miners to be subjected to poor conditions of service in the mining sector.
On KCM, the minister said KCM had a debt liability of $1.6 billion and as such, nationalising the mining firm would entail Government and the citizens to shoulder the responsibility of paying the debt.
Mr Yaluma said $1.6 billion was a massive debt which Government could not afford to take on its shoulders and as such, even if Vedanta, who are the owners of KCM were to leave, the next available option would be to find another investor for the mine.
He said as much as people had been calling on Government to take over the running of the mines and KCM in particular, nationalising them was not the best option available.
“Nationalising KCM is just one of the options but not a solution. If we are to take over KCM ,that would mean the $1.6 billion debt liability will have to come to Government and all of us to be paying but we have asked them to pay and they are doing that,” he said.
Mr Yaluma, who said Government had tasked KCM with a number of things to undertake in correcting the anomalies that were revealed in the audit report, expressed happiness with the mining firm’s positive strides in improving operations.
“We have tasked KCM a number of things and one of them is that the company must mobilise funds to inject in the mine. We gave them a figure of $400 million which Vedanta must start injecting,” Mr Yaluma said.
He said in addition to that, KCM was told to pay the $111 million owed to contractors and suppliers, as well as not carrying out any further retrenchments at the mine.
“As I am speaking, out of the 280 casual workers who were there, they have employed 250 and $52 million of $111 million owed to contractors has been paid and furthermore, $250 million out of $400 has been pushed in for support in meeting their targets,” Mr Yaluma said.
Mr Yaluma said following Government strict monitoring of KCM operations, the company was now moving in the right direction in improving its operations that had slumped in the recent past.