Thursday, April 30, 2009

Mopani will not close its mines

The global financial melt down has affected the mining industry most with mining companies at Luanshya and Bwana Mkubwa on the Copperbelt closing their operations. The company operating Lunnshya mines pulled out and government is still making efforts to find new investors. That apart MOPANI Copper Mines (MCM) also planned to close its mines in Mufulira and Kitwe and placing them on a care and maintenance basis.

However, Mopani appears to have changed its position as of April 29 company secretary, Kyansenga Chitoshi announced that Mopani had shelved plans the mines under care and maintenance. He said the decision followed the implementation of the cost reduction programme coupled with the slight improvement of copper prices on the international market.

“Following a detailed review of its mining operations, Mopani expects to achieve a significant cost reduction through the implementation of a range of cost containment programmes. This, together with a slightly improved copper price environment, has enabled Mopani to make the decision to continue with its mining operations at both Nkana and Mufulira rather than place the shafts on care and maintenance,” Ms Chitoshi said.

Early this month, Mopani indicated that it would close Mufulira Mine and lay off 1,400 employees by April 14, sparking complaints from the Mineworkers Union of Zambia (MUZ). But the Government declared the move null and void, indicating that the mine should have given a 90-day notice to the director of mines, as provided for under section 34 of the Mines and Minerals Act.

Ms Chitoshi said the firm would re-evaluate the untapped synclinorium ore body, a resource of about 100 million tonnes located below the existing Nkana South and Central shaft ore bodies.

“The aging ore bodies currently being mined are now nearing the end of the productive lives. The board of directors has, therefore, resolved to re-evaluate the potential of the synclinorium ore body,” she said.

She said the measurers which had been put in place would significantly contribute to the sustainability and prolong the life-span of the mines and secure a better future for the workers.

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