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| Action Aid protesting against some mine investors in 2019 |
By Paul Shalala
2019 has been a challenging year for
the mining sector in Zambia.
Africa’s second largest copper producer
started the year with implementation of various government measures which were
prescribed in the 2019 National Budget.
One of these was the 15 % tax imposed
on imported copper concentrates.
This measure was meant to boost local
production of copper concentrates which is a highly sought after product in the
mines.
However, this measure was heavily
opposed by the mining houses.
“This measure was done without
consultation. It led to a situation were the sector thought government was
fighting it. The measure brought problems for Chambishi Metals which ended up
laying off some workers,” said Association of Mine Suppliers and Contractors of
Zambia President Augustine Mubanga.
Secondly, the 2019 National Budget also
brought in Sales tax.
This tax was brought in to replace
Value Added Tax which had been in use for decades.
But due to heavy opposition from the
mines, talks between government and stakeholders went on for almost the whole
year.
Implementation of the tax was postponed
two times and in the end, the Ministry of Finance ended up scrapping it off in
the third quarter.
Mining, being a huge undertaking, has
far reaching consequences on the environment.
A number of mine houses were caught off
guard in this area in 2019.
For example, in March, Mopani Copper
Mines was exposed for constructing an illegal tailings dam in the Nkana
Tailings Complex in Kitwe.
Here, harmful products were being
released into this tailings dam which was built without approval by
authorities.
The illegal tailings dam was exposed
when then Mines Permanent Secretary Paul Chanda toured the tailings complex and
found Mopani workers discharging waste into the bush.
In anger, Mr Chanda threatened to take
on the mining giant.
Inspectors found traces of harmful
substances in the effluent and the mining firm was later fined by the Zambia
Environmental Management Agency.
And in October, the Nchanga Acid Plant
in Chingola released harmful substances into the environment.
Over 300 pupils at Nchanga Trust School
and several KCM workers were hospitalized.
This was after a power surge.
“The other issue which was topical in
2019 in the area of the environment is the debate on the opening of a mine in
the South Luangwa National Park. The sad part is that the mine life span is
seven years. Now look at seven years and what impact mining will do on the
ecosystem to mine for only those few years,” said Lovemore Muma, an
environmentalist who runs The Earth Organisation.
But the biggest of all the 2019 mining
stories was the takeover of Konkola Copper Mines by the ZCCM-IH, a government
congolomerate which has stakes in several mines.
KCM is the largest employer in the
mining sector in Zambia and it has operations in Kitwe, Chingola, Chililabombwe
and Nampundwe.
Following protracted negotiations over
the failure by KCM to pay its suppliers and contractors, ZCCM-IH moved in and
ejected Vedanta Resources, an Indian owned conglomerate.
For years, KCM had been reporting
losses despite holding to a mine which many Zambians think was sold for a ‘song.’
Zambia’s President Edgar Lungu
announced the takeover of the mine during a meeting with mine suppliers and
contractors in Ndola.
“They have lied enough to us. We will
go to court and get a divorce,” said President Lungu.
Since then, Milingo Lungu was appointed
as a liquidator and took over the running of KCM.
Suppliers and contractors are now
receiving their money.
“The take over of KCM was well received
by us and other stakeholders because KCM was unfaithful. They owned our members
millions of dollars and some of them went for over five, six or nine months
without payment. Now we are being paid within a month,” said Mubanga.
And in the small scale mining sector,
there was a lot of activity.
A number of tailings and dumps, mostly
on the Copperbelt were given to the young people.
The youths are still pushing for
capital to actualize their dreams.
Still in the small scale mining sector,
gold was discovered in Mwinilunga, Mumbwa and Petauke, leading to a rush by
local and foreign interested business people.
In Chief Chibwika’s area in Mwinilunga,
thousands of prospectors invaded the area in August.
“My chiefdom is under siege. Three thousand
people have come to my villages and we are worried because the sanitary
facilities in the villages cant cope, am worried for my subjects,” said Chief
Chibwika in an interview.
Another gold rush is currently underway
in Mumbwa where hundreds of small scale miners are prospecting.
A video which circulated on social
media a few days ago showed hundreds of residents using hand held tools digging
for gold in Sichanzu area, near Luiri Mine.
And the Small Scale Miners Association has
some advise on how the newly found gold can be utilised.
“We need laws that can govern the
mining of gold. The mining going on is uncoordinated. The price of gold is
better that copper. Going forward, we advise government to utilise this mineral
which can bring the much needed wealth to this country,” said Kunda Chani,
President of the Small Scale Miners President.
On a sad note, several miners died in a
number of mine accidents.
Mopani Copper Mines, which is partly
owned by Glencore, recorded the highest number of deaths in several mine
accidents across the country.
This led to suspension of operations.
“These mine accidents and deaths at
Mopani exposed their challenges in terms of safety. Mopani must invest in
safety, it is not good to continue losing workers like that,” said Joseph
Chewe, President of the Mine Workers Union of Zambia.
2019 is also the year when Manganese
mining became very prominent in Central and Luapula Provinces.
Various foreign firms, mostly owned by
Chinese investors, have set up factories in the two provinces ready to refine
the mineral.
As the country enters 2020, the mining
sector hopes to see an increase in copper production which saw a drop in 2019.
