By CASSEY KAYULA and ESTHER NG’ANDU –
FINANCE Minister Felix Mutati was yesterday locked up in a meeting with Mopani Copper Mines (MCM) and the Copperbelt Energy Corporation over a standoff on the revised electricity tariffs.
Mines and Minerals Development Minister Christopher Yaluma, his Energy counterpart David Mabumba and officials from the First Quantum Minerals (FQM) attended the meeting at the Ministry of Finance.
By Press time, Mr Mutati, Mr Yaluma and Mr Mabumba were still locked up in a meeting with MCM, FQM and CEC.
MUTATI
The meeting was said to have been convened to settle the outstanding standoff on the new electricity tariffs.
Ministry of Finance head of public relations Chileshe Kandeta informed journalists that had earlier gone to cover the media briefing, that a statement or another Press briefing would be held to provide an update on the talks.
MCM last week suspended operations after CEC restricted power supply to the mining company’s units in Kitwe and Mufulira, a move that has not been received well among economic players.
MCM has further suspended its contracts with some suppliers due to the ongoing impasse with CEC.
CEC’s move to restrict power was as a result of the dispute by mining companies to pay the new electricity tariffs effected by Zesco Limited.
On Thursday, CEC switched off some installations, forcing MCM to quickly evacuate underground miners to safety and suspend operations.
CEC effected restriction of power supply to MCM to 94 MegaWatts from their normal uptake of 130MW, which was a reduction of up to 36MW, equating to about 28 per cent of MCM’s normal supply.
Recently, the power utility firm increased its tariffs to meet its operational challenges, a move that has affected the operations of most mines and its suppliers. MCM has to this effect refused to pay the new
tariffs.
On Tuesday last week with CEC and Zesco holding their ground, the standoff devolved into a crisis threatening the jobs of thousands of workers after Mopani officially indicated its intention to lay off
4,700 miners to the labour commissioner if the impasse was not quickly resolved.
In a related development, Association of Mine Suppliers and Contractors (AMSC) president Augustine Mubanga said over 300 local suppliers and contractors had been suspended.
Mr Mubanga said more than 1,000 workers were not accessing the plant as of yesterday due to the contract suspensions.
“We are not happy with the move taken by MCM, and let me announce to you that over 1,000 workers as of today have not even been allowed to access the plant because of the same move they have taken. It is so unfortunate and unacceptable,” he said.
Meanwhile, Green Party president Peter Sinkamba said the mining firm had gone beyond the law following the suspension of contracts.
Mr Sikamba appealed to President Edgar Lungu to invoke the Emergency Powers Act to end the impasse.
“Let the President come in because Section 3 regulation 2 of the Emergency Powers Act empowers him to take over on behalf of the Republic in any undertakings, including industries, which have been declared a strategic industry and, therefore, eligible for compulsory acquisition in the manner in which management of the mine is running the affairs,” he said.
