The head of state in Africa’s second largest copper hotspot Zambia, Dr. Edgar Lungu assured the miners at Konkola Copper Mines that their interests will be prioritized in the liquidation process. President Lungu said this during visit to the mine on January 07, in Chililabombwe where he met with the National Union of Miners (NUM) and the Mineworkers Union of Zambia (MUZ) during his overall visit of the Copperbelt of Africa. The visit comes barely a month after the Zambia’s Medium Term Expenditure Framework (MTEF) dubbed the Economic Recovery Plan (ERP) was launched. In his speech at the ERP launch Dr. Lungu made special emphasis on mining as a key sector that would drive Zambia’s economic recovery post COVID through a review of business conditions such as taxation to a rethink of the states shareholding in key mines. This visit by the head of state sends a signal to the market on how determined the Zambian authorities are on actualizing the ERP’s proposals.
“We will safeguard our sovereignty in the mining sector. The sector should change and for the better,” The President said. He expressed happiness that some operations that had earlier shut at the mine were back to life again. he lauded employees, contractors and all involved for demonstration of commitment to bringing back the mining sector to life.
In addressing the Mine Workers Union of Zambia, the President echoed no amount of intimidation that would make his government alter his position on Konkola Copper Mine (KCM). He further stated that he would prioritize interests of the miners and will protect them. President Lungu remains confident that the mines can be effectively run by indigenous Zambians.
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KCM has been in the lime light for the ongoing litigation following tension between majority shareholder Vedanta Resources and ZCCM-IH the states mining investment vehicle which is currently under arbitration. This matter continues to border on investor confidence which could be threatened versus the states obligation to protect interests of is citizens in the event of exploitation.
“We have no permanent enemies and no permanent friends but have union and workers to protect. So today anyone that is our friend and works contrary to us becomes our enemy and vice versa. We can not afford to have the President as our enemy because he has worked well with us,” the Union carried.
The union lauded the states position and were comforted by certainty that surrounds KCM after the liquidate appointed an Acting Chief Executive Officer and more recently the announcement that the mine would be reorganized into the smelting and mineral business respectively. Arguably other schools of thought see this decision under the arbitration clock as potentially denting investor sentiment yet the move has been supported by the mine unions as one in the best interests of Zambians especially at time when metal prices have experienced a strong bullish rally on the London Metal Exchange (LME).
“We are happy with your visit. Your commitment to keep the mine afloat shows that you are truly a father of the nation. Uncertainty and anxiety hit us when we heard that the mine would be liquidated in 2019. Today we can walk with our heads high because the demons that haunted us are gone. Never shall we be taken advantage of by investors such as Vedanta over our own God given assets,” Mine Workers Union Representation said.
Zambia’s Presidents also visited EMR Capitals Lubambe Mine before proceeding to Konkola Copper Mine after which his next stop is expected to be Glencores Mopani on January 08.
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