By Isaac Zulu
Green Party leader Peter Sinkamba has opposed plans to put Mopani Copper Mines in the hands of private investors.
In an interview, Sinkamba said that the last 20 years of privatisation have shown that mining companies have been declaring losses and no dividends, thereby putting the burden on tax payers.
He argued that there will be no investor who will be willing to settle the debt that Mopani Copper Mines has.
“Government owes Glencore $1.5 billion which must be paid in 20 years starting from the year 2020, meaning it must be cleared by 2035. That $1.5 billion is not the only nkongole that Mopani has. They owe contractors and suppliers about $500. That makes it a minimum of $2 billion debt that Mopani Copper Mines has,” Sinkamba explained. “There will be no investor that will come and take over that debt. So the most likely scenario is that whichever investor will come will say would not take that responsibility. Meaning that that particular liability will end up being a public liability, which entails that the tax payers may be the ones to pay that debt. So I am saying instead of going through that arrangement, it is better we keep Mopani Copper Mines as a ZCCM-IH asset. Then look for capital so that it can run on its own, as opposed to putting it in the hands of another investor because we will just be wasting time. Why I am saying this is that from the experience of the last 20 years of privatisation, all these mining companies have been declaring losses and no dividends and thereby increasing the burden on the public.”
He stressed that Mopani Copper Mines has competent human resource to run the facility, saying what is just needed is financial resources to run the mining company sustainably.
“For Mopani Copper Mines to run sustainably, it requires capital. The capital required is between $300 million and $500 million. Mopani has competent people to run the facility. Just give them capital. Chapwa,” said Sinkamba, who worked in the mines for close to 30 years.
There have been numerous interests from prospective investors to take operations at Mopani.
South African based company MKP has offered US $2.6 billion for an outright purchase and ownership of Mopani Copper Mines in Kitwe and Mufulira.
During his recent visit to the Copperbelt Province, President Hakainde Hichilema that government has sourced for funds to go towards the revamping of Mopani Copper Mines and the facility will be fully operational within the first quarter of this year, saying government will make a definitive announcement to the nation before the end of March.
