Government Restarts Negotiations With Mopani Mines

Finance Minister Bwalya Ng’andu announced on Monday that the government has restarted negotiations with Mopani Copper Mines in order to avoid the company’s mines being placed under care and maintenance. 

 Dr Ng’andu said it was the government’s aim to avoid closing the mines and to extend operations beyond the previously scheduled 90 days. 

It follows initial plans by Mopani Copper to suspend operations at its mines in Mufulira and Nkana. The decision was met with backlash from the government, which threatened to revoke its mining licenses for failing to provide a reasonable notice period. The company was also accused of breaking labour laws by making workers to opt for forced leave while ending contracts for mining supplies and services.

Dr Ng’andu is leading a negotiating team which includes Minister of Mines and Minerals Development Richard Musukwa, Minister of Labour Joyce Simukoko, Minister of Energy Matthew Nkhuwa, and Copperbelt Minister Japan Mwakalombe. 

The team are meeting with delegations from mining unions and officials from Mopani Copper to discuss how best to prolong operations beyond the stated 90 days, which came into effect earlier this month. 

Mr Musukwa said the government wants Mopani to produce a model for survival and to employ local contractors as opposed to foreign companies. He said employing local contractors would help Mopani overcome some of its financial challenges.

Mopani mines had been forecast to produce between 50,000 and 70,000 tons of copper this year, but the outbreak of Covid-19 led to a mass fall in demand and prompted the company’s parent organisation, Glencore, to halt production.