Inter Press Service (Johannesburg)

Zambia: Controversial Chinese Firm Given Another Copper Mine

Lusaka — The desperate need to find an alternative investor for the closed Luanshya Copper Mines (LCM) in Zambia's Copperbelt has not prevented some Zambians from fiercely opposing the government's decision to let Chinese-owned Non-Ferrous Metals Mining Company (NFCA) run the mine.

The choice of NFCA is controversial because 49 miners died in an accident at the Chambishi Mine which it had taken over in 2003. Five miners were shot and killed by police during violent protests over working conditions at the same mine in 2007.

LCM, a joint venture of the Swiss-based International Mineral Resources and Bein Stein Group Resources of Israel, closed on Jan 22 this year, leaving 1,700 miners jobless. The mine allegedly failed to cope with the drastic fall in the prices of copper on the London Metal Exchange from 8,000 to 3,000 dollars per metric ton.

After the mine closed, women married to the male miners petitioned President Rupiah Banda to find a buyer or for the government to take over its running. The government owns 15 percent of the shares.

Banda announced that NFCA, which owns Chambishi Mine in the Copperbelt, was chosen over the London-listed metal and mining company Vendata Resources which runs the biggest copper mine in the country, Konkola Copper Mines (KCM), as well as Luanshya Mineral Resources.

He said NFCA had promised to develop a new mine called Muliashi at LCM which will be producing 30,000 metric tonnes of copper cathodes in addition to running the mine hospital, trust school, craft school and sports and recreation facilities. NFCA has in all committed 400 million dollars to the running of the mine.

"I want to assure you that this investor knows and understands the business of mining. This investor is not in Zambia just to make quick money and get out at the first sign of stress in the business," Banda said.

But main opposition party the Patriotic Front's (PF) chairperson for mines, Wilbur Simuusa, retorted that Chinese investors have a bad track record when it comes to social responsibility and mine safety and wondered how the facilities they have failed to maintain at Chambishi will be sustained at Luanshya.

Zambia has seen a backlash against Chinese influence in the local economy, largely fuelled by workplace accidents; concerns over poor working conditions and low pay at Chinese-run copper mines; and resentment over an influx of Chinese traders into the apparel industry.

In 2006, Zambian miners were killed in an accident at the Beijing General Research Institute of Mining and Metallurgy explosive factory, a multi-million dollar joint venture between China and the NFC Africa Mining Company. The accident, caused by a massive explosion inside the manufacturing plant, killed all of the workers who were trapped inside.

China's involvement in Zambia dates back to the early 1970s, when China built a railway linking central Zambia to the nearest port city of Dar es Salaam, Tanzania.

But in recent times, there has been a hostile response against Chinese involvement in Zambia's mining industry. The PF favours closer ties with Taiwan, making it a major campaign issue in the 2006 elections where it won the majority of the votes in the Copperbelt province, the mainstay of the country's economy.

However, Austin Liato, the minister of labour and social security, sees nothing wrong with Chinese investment. He wonders why Zambia, which is hoping to become a middle income country by 2030, should not accept investment from China when developed economies were doing so.

"These investments must be accepted. Zambians should not be hoodwinked by people with other motives," Liato asserted.

But Chishimba Kambwili, the Luanshya member of Parliament who has led a fierce opposition to the Chinese running the mine, argued that the sale of the mine to NFCA would spell the end for Luanshya.

"It's not that we're merely against the Chinese. We're just protecting the welfare of people who have suffered at the mercy of investors who are only interested in enriching themselves at the expense of the workers," he stated.

Mufulira Chamber of Commerce and Industry (MCII) president, Shadreck Musozya, however welcomed the decision to give the mine to NFCA but advised that the government should avoid a situation where workers and entrepreneurs are not adequately protected.

"We want this to be of mutual benefit to both the owners of the mines and the workers and entrepreneurs, on the other hand," he pointed out.

The Mine Suppliers and Contractors Association chairperson Fanuel Banda raised concern that Chambishi only deals with 150 local suppliers out of 5,000 registered ones - unlike KCM which sources from 5,000 suppliers and Mopani Copper Mines (MCM), another mining firm on the Copperbelt, which has 3,000 suppliers.

But mines minister Maxwell Mwale says NFCA is a well-established company that has a long history in mining.

"NFCA scored the highest during the evaluation of the bids. They're in this country running a mine but we've never heard anything negative from them since the meltdown started. They've continued operating at Chambishi where they're sinking sub-vertical and access shafts at a mine which was closed for 13 years," he informed Zambians.

But Makasa Chisapa, a former miner, says he does not care where the investor is from as long as they are able to pay him a good salary to support his family.

"I have three school-going children but no job. The benefits I got after the mine was closed went towards paying a loan I got from the bank. So I want the mine to re-open as soon as possible so that I can stop struggling financially," he told IPS.

Copper accounts for 80 percent of Zambia's foreign earnings and since 2003 has been the main driver of an annual economic growth rate of five percent.

At the peak of production in the 1980s, Zambia, which is Africa's largest copper producer, used to produce about 750,000 metric tons of finished copper annually before output dropped to 200,000 metric tons in the 1990s.

Current production is about 600,000 metric tons annually and a government projection of one million metric tons in 2010 is viewed as unlikely because of the global economic slump. The demand for commodities has dropped; leading international copper prices to tumble with the labour force being reduced, expansion projects halted and mining operations closing.


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Comments 1 to 3 of 3 Post a comment

  • AFRICA MUST STOP LEASING, SELLING INVITING PARASITE NATIONS ON AFRICAN S
    Jun 2 2009, 11:08

    The parasitic relationship (and genocidal attack on Africa) that began with the invasion of Semite 'traders' from North Africa and the Middle East has led to almost half of Africa being under the influence of the Semites, their religion and language. After centuries of war with the Semites who came from the Arabian deserts, Sudan was led to sign a treaty "bakt' which led to the influence of traders and the slave trade ( see 'The Destruction of Black Civilization," by Chancellor Williams http://www.thirdworldpressinc.com also see 'Susu Economics," http://www.authorhouse.com and also 'A History of Racism and Terrorism, Rebellion and Overcoming," http://www.xlibris.com http://www.myspace.com/sexyaabooksculture )

    Today, the Semite 'traders' have ravaged Africa, the genocide of slavery has been and is still being committed, foreign religions and cultures have distroyed African civilizations that date to over 15,000 years (Khemet, Cush, the Zingh Empire of the Sahara).

    Note that the term 'Zingh' is still used by Arabs to describe Africans -- a great irony because the Zingh Empire was the world's largest and first civilization, stretching from Senegal to India in prehistoric times when the Sahara was still 'wet' and fertile -- see 'Susu Economics: The History of Pan-African Trade, Commerce, Money and Wealth," as well as 'A History of the African-Olmecs: Black Civilizations of America From Prehistoric Times to the Present Era," at AuthorHouse.com, 1663 Liberty Drive, Suite 200, Bloomington, Indiana 47403 --- THESE ARE WORKS THAT EVERY AFRICAN LEADER, SCHOLAR, POLITICIAN, STUDENT SHOULD READ.)

    The Zingh Empire may have also spread their culture of pyramid-building and massive monument carving to ancient Mexico in the West and India, China and the Pacific/Melanesia in the East.

    THE PARTITION OF AFRICA AND THE BERLIN CONFERENCE

    African nations today are fragmented and misled just as our ancestors were before the BERLIN CONFERENCE, when African nations eager for trade and commerce, were FOOLED INTO THE SLAVE TRADE WITH EUROPE, A TRADE BEGAN BY THE SEMITE INVADERS AND OCCUPIERS OF PARTS OF NORTH AFRICA.

    Our mistake then was REFUSING TO QUICKLY MODERNIZE, INDUSTRIALIZE AND BUILD ECONOMIES THAT SELL CREATED PRODUCTS, RATHER THAN SLAVES. The slave trade distroyed Africa's intellectual wealth and its material wealth. It led to the best minds being sent to the Americas - where they PERFORMED THE GREATEST CONTRIBUTION TO A NATION IN HISTORY -- the transfer of African culture, inventions, art, music and skills to the Americas.

    Today, the NEW COLONIZERS COME WITH THE SAME TRICKS of 'bringing gifts,' while we sit around with out hands out, hoping that other nations will supply us with cars, watches, trucks, clothing and everything we need -- WHILE WE ALLOW THEM TO RAVAGE OUR NATIONS AND SOIL, JUST AS SOME OF OUR ANCESTORS DID DURING SLAVERY.

    These days should be over. Africa and Africans can do better. We do not need to sell our nations for a few trinkets, cars, watches, tv's and for promises of AID, which is repaid in some cases with interest.

    Africa has to SEE THE POTENTIAL OF ITS OWN PEOPLE -- particularly the 300,000,000 (three hundred million) African Descendents who live in the Americas and whose talent and drive is so strong that nations as far as East Asia have used African-American inventions and creations to build thier economies ( cell phone, various types of defensive tools, music, hair care products, movie production techniques, ect...see http://www.blackhairDVD.com also see 'Susu and Susunomics," http://www.iuniverse.com )

    Meanwhile, instead of Africa organizing to get thier Diaspora to contribute to Africa's development, WE RUN EASTWARD, HOPING THAT SOMEHOW, AFTER CENTURIES OF THE EASTERN PEOPLE COMMITTING GENOCIDE ON THIER ABORIGINAL BLACK/AFRICOID POPULATIONS ( East Timor, West Papua, Southern China, Vietnam/SE Asia, Melanesia, Australia, Papua New Guinea, South India -- ALL WHO HAVE TAKEN GENOCIDAL MEASURES SINCE ANCIENT TIMES AGAINS THEIR OWN BLACK/AFRICOID POPULATIONS), that somehow, these nations are our 'friends' with the desire to see us better than them.

    The conditions and situation in Sudan, West Papua, East Timor and even Latin America -- where Blacks are the victims of genocide - shows that AS LONG AS SOME NATIONS GET MINERALS AND RESOURCES, THEY WILL STAND ASIDE AND WATCH BLACK PEOPLES DISTROYED -- as is the case in Dafur. Hence is that 'friendship,' or genocidal self-interest. Why is West Papua, a Black nation under occupation facing genocide from SE Asia? Why is Papua New Guinea still a 'poor' nation with such massive mineral and natural resources -- WHERE ARE THE 'PAN-AFRICAN' EXPERTISE ORGANIZED TO MAKE SURE THAT THE RESOURCES OF 'PAN-AFRICOID' NATIONS (Black Americas, Black Africa, Melanesia, parts of India, Black Australia, South Pacific, Caribbean, Afro-LatinAmerica, Afro-Brazil, Black Europe, Afro-Arab regions (not Sudan, or Somalia, since Sudan and Somalia are African Black Negro nations and NOT 'ARAB/Semitic.')

    In retrospect, AFRICA MUST STOP DEPENDING ON FOREIGN NATIONS WITH DREAMS OF RECREATING THE 'BRITISH EMPIRE,' BOTH IN PHYSICAL TERMS AND CULTURALLY, AS WELL AS ECONOMICALLY.

    Africans have the same brains and intelligence as people from anywhere else. However, as long as Africans continue to allow ourselves to be fooled by the RELIGIONS AND 'BELIEFS' OF OTHERS THAT CONTRIBUE TO OUR LOW FAITH IN OURSELVES, AS LONG AS WE WAIT FOR OUR 'ANCESTORS' instead of doing for ourselves, as long as we wait for foreign products and foreign people to flood our nations -- WE ARE DOOMED TO SEE HISTORY REPEAT. We are doomed to become COLONIES OF NATIONS IN ASIA AND VICTIMS OF GENOCIDE AS SOME OF THE BLACK RACE IN ASIA HAVE ALREADY FELT AND CONTINUES TO FEEL ( http://www.westpapua.org ) http://nubianem.tripod.com/blackafroasia

    see more here: http://blackmalepowermovement.forumsland.com

  • curious
    Jun 3 2009, 14:39

    I agree with this post, unfortunately, our leaders are too retarded to understand that history is repeating itself..I would like to add that the Arabic Sudanese refer to black africans as "AB" to today Ab means "SLAVE"..

  • loveuniversal
    Jun 2 2009, 16:59

    I am going to make this message as simple as I can. Dispite the need for the immediate operational use of the copper mine, we must ensure that saftey comes first. We know that there are hazordous jobs that people work thru, but we must have assurance that there will be safe working conditions, and that safety conditions are improving as business procedes. If you have a poor track record for safety, and there are protesters that are starting to become violent, and have had past violent incidents, then it is in the OVERALL best interest of everyone to hold off on a immediate use, untill confidence among the workforce, protestors, business associates that mine line exeedes saftey standards. I say EXCEEDS because it has been recorded by Wilbur Simuusa that the Chinese have a bad track record for social responsibility and mine saftey.