By KAIKO NAMUSA-
MOPANI Copper Mines (MCM) has introduced a deliberate policy to empower local contractors through restructuring of mining rates, providing spare parts and fuel to them to ease the cost of conducting business with it.
MCM chief executive officer, Danny Callow said the company aimed at addressing some of the challenges faced by contractors, especially the local ones, in the mining industry.
Mr Callow cited some of the challenges being the movement of materials to mine sites, slow cash flow for items such as spare parts, fuel and other materials for mining operations.
Mr Callow said the new policy based on the International Federation of Consulting Engineers (FIDIC) principles, would promote efficiency and high productivity while giving contractors dealing with Mopani more financial protection and empowerment.
“A number of mining contractors experience challenges when doing business with mining companies such as difficulties in moving materials to mine sites, slow cash flow for items like spare parts, fuels and other materials for mining operations,” he said.
“However, we have decided to focus on empowering the local contractors. Using the FIDIC principles, we will help the contractors to acquire consumable materials such as spare parts and fuels and at the same time assist them to manage these materials effectively. This will not only help the contractors but also us by reducing standing time and increasing mining productivity”.
Mr Callow said in a statement yesterday that under the new arrangement, Mopani would also pay all contractors for standing time caused by the company, which would cover their fixed costs and enable contractors improve their service delivery, conditions of service and enhance productivity.
He said this would force Mopani workers to ensure that they work with the contractors efficiently to promote better productivity and that the company also planned to revise mining rates for better-performing companies.
“This mutual relationship will allow Mopani to assist in mentoring Contractors who are willing to change and teach them better material management, supervisory and maintenance skills,” he said.
Kitwe District Chamber of Commerce and Industry (KDCCI) president Raj Karamchand, who spoke on behalf of the contractors, commended Mopani for introducing empowerment policies for contractors, saying the new policy would help both parties plan effectively and improve performance.