PRESS STATEMENT
27 SEPTEMBER 2020
ASKING ZCCM I H TO RUN MOPANI MINES IS A VERY EXPENSIVE JOKE
The PF Regime should tell Zambians who will be financing the operations of Mopani Copper Mines. It makes no sense for this same PF regime who are struggling to meet its debt obligations to start running the mines. Clearly PF does not understand the difference between running a mine and a black mountain. ZCCM IH has no capacity to run the mines. If ZCCM IH has any capacity, why did it fail to run Ndola Lime Company? If ZCCM IH has any capacity, why did it ask for foreign partnership to operate a much less complicated gold mine than a copper mine? Why did ZCCM IH fail to extract minerals from the black mountain but instead sold it? This is a very expensive joke of the century.
Yes, Zambians are not benefiting from their mineral resources. The problem is not privatization but how PF has managed investors. PF has been too brutal with investors, instead of engaging them in meaningful discussions. We have seen PF lining up cadres demanding the takeover of the mines and manhandling Mopani officials. PF is suggesting amending the Mines and Minerals Development Act of 2015. There is nothing wrong with this Act. What is wrong is your style of leadership and implementation of this Act. A bad carpenter always blames his tools.
As a Nation we don’t know who is financing the operations at KCM. We don’t know whether KCM is running profitably or not. However the bottom line is that the asset book value is going down as there is no corresponding recapitalization. During ZCCM, miners were getting paid on time, contractors and suppliers were paid on time. But the asset book value was going down due to inadequate recapitalization hence the mines were sold for a song.
For those who are excited about buying shares in the mines, they should know that a dividend is not paid like a monthly salary. A share holder can go for years without being paid any dividends as long as no profit is being recorded. The older or the deeper the mine the more it is expensive to run it profitably. Mufulira and Nkana mines are very old mines and therefore it’s very expensive to run these mines profitably. Zambians must brace themselves for more suffering as this PF Government pumps public resources into the bottomless pit.
Percy Chanda
UPND – Chairman for Mines and Freedom Fighter