Mining authorities in Africa’s copper hotspot, Zambia, have rejected a 24hr notice from Glencore corporation intending to place its local operation on care and maintenance. This was established in a press statement by Zambia Mines Minister Richard Musukwa on 07 April. Glencore subsidiary Mopani copper mines would be sending 11,000 miners home for 3months which the Zambian government has objected to.
As COVID19 weighs base-metals on the London Metal Exchange (LME), global miners have resorted to business reviews to weigh viability of mining operations. One such miner is Glencore corporation that has conducted a business review that has revealed that mining operations are faced with negative jaws in the COVID pandemic period hence the decision to placing its operations on care and maintenance.
Mopani copper mines has applied to have its Mufulira and Nkana plants on care and maintenance following rising costs fuelled by feeble metal forcing mines to adjust production lower as global demand plummets following COVID19 pandemic effects.
Mines Minster in Africa’s red metal hotspot Richard Musukwa objected Mopani Copper Mine’s plan to place Mufulira and Nkana plants including underground operations under care and maintenance. Musukwa in a press statement advised the miner to notify the state if it has failed to manage and run the mine.
“I have further rejected an attempt to give government less than 24hrs notice to effectively lay off more than 11,000 workers and put a mine on care and maintenance. We shall further engage MCM to be more forthright and engage in genuine dialogue to look into the plight of workers and the life of the Mines in Kitwe and Mufulira respectively. There is no Force Majeure that can reasonably be seen by any reasonable person analysing the sector. Where an Act of God or Force majeure occurs, it tends to be so clear everyone would agree that a situation has so presented itself but in this instance we do not agree as Government that Force majeure has been triggered that can justify waiving workers rights, Environmental concerns and Mine Safety, the Musukwa said.
The Kwacha Arbitrageur
