By Isaac Zulu
About 1,000 employees working for contractors and suppliers contracted by Mopani Copper Mines are on the verge of being laid off.
National Union of Mine Workers and Allied Workers president Saul Simujika confirmed the
looming job losses in an interview, saying that Mopani Copper Mines has been struggling to pay contractors and suppliers owing to the financial and operational challenges that the mining company has been facing.
“Mopani Copper Mines has found itself in a situation similar to what was obtaining at KCM. Mopani Copper Mines is doing something underground, but the mining company is not doing well, generally. Mopani is currently struggling to pay contractors and suppliers due to the financial and operational challenges that the company is facing,” Simujika explained. “Because of that they have reduced the hours of production. Subsequently the contractors and suppliers are affected. They are owed a lot of money by Mopani Copper Mines. That’s not the Mopani we knew before Glencore could leave. And in the end the workers employed by contractors are affected. And yes, there are talks of laying off some workers.”
He said that the there is need to find an equity partner for Mopani Copper Mines so that the mining company can increase production and be able to meet its financial obligations.
“As a union, we are in constant engagement with management at Mopani Copper Mines and the Ministry of Mines so that a lasting solution can be found for Mopani in the earliest possible time so that Mopani Copper Mines can be up and running by January 2024. And we think that there’s need to find an equity partner for Mopani. This is something that the Minister of Finance talked about during the budget presentation, we only hope that it will be actualised.”
Well placed sources have indicated that Mopani Copper Mines owes its contractors and suppliers in excess of $200 million.
Sources have also indicated that contractors and suppliers have threatened to stop providing their services to Mopani Copper Mines and lay off their workers.
But when reached for a comment Mopani Copper Mines public relations manager Nebert Mulenga could neither confirm nor refute assertions that some contractors and suppliers want to lay off workers because the the mining giant owes them money for the services rendered.
He said that the financial and operational challenges Mopani Copper Mines have been discussed and press statements have been issued regarding the same, saying these issues cannot be over emphasised.
Mulenga said the issue relating to the mining company owing contractors and suppliers millions of dollars is in public domain and he would not belabour to discuss the matter further.
“The issue of Mopani Copper Mines owing money to some contractors and suppliers is in public domain. And there are statements to that effect. Thank you chief for calling,” said Mulenga.
