Threat of Corona Virus Causes Congestion at Kasumbalesa Border

Trucks parked along the Kitwe-Chingola Dual Carriageway 

road this morning. -Picture by Ralph Mukuka

By Paul Shalala at Kasumbalesa Border

Thousands of trucks from the Southern Africa Development Community (SADC) are stuck on the Zambian side of the Kasumbalesa border post in Chililabombwe District following the detection of two suspected cases of Corona Virus in the Congolese city of Lubumbashi.

On Sunday, authorities in the Congolese border town of Kasumbalesa closed their side of the border after word went round that the Corona Virus had reached Lubumbashi.
This caused panic on the Zambian side as hundreds of truckers from SADC parked their vehicles after failed attempts to cross the border.

This forced authorities on the Zambian side to engage their Congolese counterparts who agreed to address the truckers.

“The border is wide open as I speak. But the truth is that we had two cases of Corona Virus in Lubumbashi yesterday and the Governor of Upper Katanga has directed us to take measures to avoid the spread,” said Adrian Kapampa, the Mayor of the Congolese town of Kasumbalesa when he addressed hundreds of truck drivers on the Zambian side.

Despite this assurance, truckers refused to cross fearing the Corona virus.

Buy the end of Sunday; the queue of trucks from the Kasumbalesa border reached the town of Chililabombwe which is 15 kilometers away.

And by midday today, the queue has reached the mining town of Chingola which is 50 kilometers away.

The trucks are now pilling up on the Kitwe-Chingola Dual Carriageway and authorities fear that if truckers do not cross into the DRC, the queue may reach Zambia’s second largest city Kitwe which is 54 kilometers away.

Kasumbalesa is the busiest crossing point between Zambia and the Democratic Republic of Congo (DRC).

Trucks from across SADC use the border to supply the DRC with mining equipment, food and fuel.

On the other hand, raw materials from the mineral rich Katanga region pass through the Kasumbalesa border on its way to ports like Durban in South Africa, Walvis Bay in Namibia and Dar Es Salaam in Tanzania.

Kasumbalesa, which handles about 1,200 trucks on a daily basis, is a major economic center for the region and any disturbance on the operations has far reaching consequences to the two countries.

“As a municipality, we are worried because these truckers are parked along the road where there are no sanitary facilities. This is a big threat to us and can spread communicable diseases. Secondly, most truck drivers come from countries where the Corona Virus has already been detected,” said Chingola Mayor Titus Tembo in an interview.

A visit to the Chingola-Kitwe Dual Carriageway, Chingola-Chililabombwe road and the Chililabombwe-Kasumbalesa road found drivers using the nearby bush as toilet.

“In this situation it is easy to catch the Corona Virus because as drivers, we come from various countries,” lamented Kelvin Milambo, a Zambian driver who works for a South African trucking company.

Other truck drivers are more worried about health.

Some truckers from foreign countries have been stuck 

on the queue for over two days.

“We are asking the Zambian government to supply us with a water bowser so that we can be washing our hands and relieving ourselves,” said another driver who did not want to be named.

The threat of Covid 19 is high in Zambia, a southern African country which has now confirmed 12 cases.

Earlier in the day, President Edgar Lungu addressed the nation and announced that 10 more cases had been detected and an undisclosed number of people have been placed under quarantine.

As a measure to contain the virus, all schools, bars, gyms and cinemas have been shut while churches only operate for an hour per week.

The Zambian government has resisted calls to lockdown the country insisting that the country’s landlocked geographical position can disadvantage it if a lockdown is enforced.

Opposition UPND leader Hakainde Hichilema has led calls for a lockdown.

President Lungu has shut down three international airports, only allowing the Kenneth Kaunda International Airport in Lusaka to handle international flights.
Zambia has four international airports in Lusaka, Ndola, Mfuwe and Livingstone.

Of the 12 cases of Corona Virus recorded, 11 involve Zambians who returned from abroad.

This could be the reason why some international airports have been shut.

The airport in Lusaka has more sophisticated surveillance equipment.

Zambia imports and exports a lot of products from China, Europe and the United States of America and it relies on its neighbours for passage of these vital products.
This could be the reason why the Cabinet has resisted locking down the country as South Africa has done.
But despite this disease posing a big challenge to society, Zambians have taken a casual approach to it.

On the streets, people can still be seen gathering in large numbers, shaking hands and hugging.

If a lockdown ever comes to Zambia, soldiers have to be deployed to enforce it because Zambians cannot keep themselves away from the streets.

But one positive aspect the Corona Virus has brought is a quest for cleanliness.

Markets and streets are being cleaned by traders without being forced by authorities.

And the threat of the virus has hit hard on the hospitality and tourism sector.

Several national and international conferences and meetings have been cancelled or postponed.

“So far, 15,000 visitors have cancelled their trips to Zambia since we recorded our first case of the Corona Virus. Some of them are even demanding refunds,” said Zambia’s Tourism Minister Ronald Chitotela last week.

Livingstone, a town which hosts the majestic Victoria Falls, has suffered heavily due to the Corona Virus.

The town, which is unofficially recognized as Zambia’s tourism capital, has seen a slump in tourist bookings and arrivals and with the closure of its international airport as announced today, the situation is likely to become even worse.

The state run Times of Zambia newspaper has reported today that 759 out of the 1,200 workers involved in the tourism industry in Livingstone have lost their jobs.

Livingstone is named after the 18^th Century English explorer David Livingstone who became the first white man to see the Victoria Falls which locals call “Mosi Ou Tunya” or the Smoke that thunders.
In the mining region of the Copperbelt, the effects of the Corona Virus have also been felt.

The Copperbelt, which borders the DRC, has several copper, cobalt and emerald mines.

“We have also been badly hit by the Corona Virus. Most of the equipment we supply to the mines come from China and the restrictions put in place to contain the virus thatside have seen our products delaying on arrival for between 15 to 20 days,” said Augustine Mubanga, President of the Association of Mine Suppliers and Contractors.

Mine Suppliers and Contractors are a major stakeholder in Zambia’s mining sector as they employ thousands of workers to execute their contracts in major mines run by renowned international firms like Glencore, Gemfields and Vedanta.

Countrywide, alcohol based sanitisers which are being encouraged by health authorities, have run out in most chain stores as Zambians rush to protect themselves from the virus.

This has led to locals using improvised methods of sanitizing their hands using local products.

Performance of Zambia’s Mining Sector in 2019

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.

Mopani Copper Mines Loses $30 Million In 10 Day Power Dispute

Mopani Copper Mines  Corporate Head offices in Kitwe

By Paul Shalala

Mopani Copper Mines, a unit of Glencore,  has in the past 10 days reportedly lost about US$30 million in a power dispute which has forced it to suspend operations and send its thousands of workers home.

On August 11, the Copperbelt Energy Corporation (CEC), the sole distributor of electricity to Zambia’s mines, started restricting power to Mopani after the firm refused to  pay the revised electricity tariffs.

Zambia is Africa's second largest producer of copper.

CEC is a private company and it does not produce its own power.

It buys it from Zesco, a state owned company and later sales it to the mines.

Zesco and CEC arrived at the new tariff after protracted talks.

The new tariff now costs mining companies 9.3 US cents per kilowatt hour.

And the restriction of power from the required 190 megawatts to 94 megawatts means that the company, which operates two copper mines and smelters in the mining towns of Kitwe and Mufulira, can no longer send miners underground.

This has also threatened the economy of the two towns which rely heavily on MCM for jobs and business.

The Nkana and Mufulira mines have been in operation since the 1930s.

“Mopani Copper Mines has rejected the industry-wide tariff increment and sought to continue to pay for the electricity they consume at the old tariff. Given that it is already eight months since the new tariff was implemented, outstanding amounts due from MCM have escalated and it has become unsustainable for the utilities (CEC and ZESCO) to continue supplying MCM with their full power requirements. Under the circumstances, CEC has been left with no option but to restrict power supply to MCM to a level commensurate with the monthly payments that MCM continues to make to CEC,” said CEC Senior Manager for Corporate Communications said in a press statement to this blogger.

Ms Nsabika said CEC was still open for talks to diffuse the standoff which has now entered day 10.

“CEC wishes to highlight that it is saddened by this very unfortunate situation and hopes that the two Managements of CEC and MCM will work together to conclusively resolve this standoff. In this regard, CEC will continue to engage with MCM with a view to finding a negotiated solution within the shortest possible time.”

But Mopani has cried foul that the matter involving the revised electricity tariffs is in court and there was no need for CEC to restrict power.

Despite other mining houses paying the revised tariffs, Mopani has refused.

The firm has since asked the Kitwe High Court to interpret the power agreement the mining firm has with CEC.

“Despite an injunction being granted by the Courts of law on Friday, 11th August 2017, power has not yet been restored to our assets. This relates to the implementation of new electricity tariffs, which Mopani and other mining companies have contested in court and the courts of law are yet to resolve the matter. While awaiting the determination of the matter in court, Mopani Copper Mines Plc has continued to consistently pay the tariffs as stipulated in the existing legal contract with CEC,” said Mopani Copper Mines Public Relations Manager Nebert Mulenga a day after the restriction of power was implemented.

But 10 days later, the standoff is still on and thousands of miners are still not reporting for work.

Energy Minister David Mabumba this morning met management from both CEC and MCM in Kitwe to try and pacify the situation.

He later emerged from the meeting with a 24 hour ultimatum to the two firms to resolve their differences.

“Today’s meeting with Mopani was to resolve some of the outstanding issues regarding the 9.3 cents or the increase in the power tariff. I wanted to conclude the negotiations today and I have told them to give me the answer before close of business today. As far as Mopani is concerned, they are losing about $3 million per day,” said Mr Mabumba when he addressed reporters.

The Minister was accompanied to the meeting by Copperbelt Minister Bowman Lusambo and the Mayors and District Commissioners of Kitwe and Mufulira.

But by sunset, there was still silence on the talks between the two sides.

And stakeholders are concerned that the standoff will result in job losses.

Mine Workers Union of Zambia General Secretary Joseph Chewe has called on the mining firm and CEC to amicably resolve their dispute and avoid escalating the situation.

“We have just come from two years of retrenchments, we do not want to see our miners losing  jobs. Let CEC and Mopani dialogue and resolve this matter,” said Mr Chewe in an interview.

And Association of Mine Suppliers and Contractors President Augustine Mubanga says the restriction of power to Mopani Copper Mines has a possibility of affecting the overall performance of the mining industry.

“This issue must be resolved quickly because Mopani Copper Mines is a huge investor whose lack of production can affect Zambia's Gross Domestic Product,” said Mr Mubanga.

He adds that some of his members are no longer able to deliver their goods and services to Mopani since the firm shut down operations.

In May, Zambia's Energy Regulations Board raised domestic electricity tariffs.