By Isaac Zulu
Green Party leader Peter Sinkamba says Mopani Copper Mines require over $300 million for it to become fully operational.
In an interview with Daily Revelation, Sinkamba, who worked in the mining sector for more than 30 years, said Mopani Copper Mines needs recapitalization that requires between $300 to $500 million.
“As Green Party, we have been consistent when advising on operations at Mopani. What Mopani Copper Mines needs is recapitalization. And that recapitalization requires between $300 to $500 million. That is the money which is required to pay contractors and suppliers as well as for mining investment. That mining company has not seen some recapitalisation for so many years,” Sinkamba explained. “Some components at that mine are dysfunctional and need to be replaced or repaired. So for it to become fully operational, it needs capital injection.”
He said currently, Mopani Copper Mines is operating below optimum capacity and that is why it has become difficult for the mining company to pay contractors and suppliers.
“Currently Mopani Copper Mines is on a lifeline. It is operating below optimum capacity and finding difficulties to pay its contractors and suppliers. They have reduced operational hours in a bid to save on costs and Mopani Copper Mines is struggling to pay for electricity bills. They have to continue pumping flooded water from underground and yet they are not working. There is no production, meaning that Mopani Copper Mines is making losses. We advised the UPND government that instead of spending $1 billion on stabilising the Kwacha, they should have considered recapitalising Mopani Copper Mines,” said Sinkamba.
