And Government has commended Chambishi Metals for efforts towards reinstating 600 out of the 900 miners that had lost jobs when the mine in Kalulushi was closed.
Minister of Mines and Minerals Development, Maxwell Mwale said in an interview yesterday that LCM management should let would-be investors make independent assessments instead of scaring them away even before they inspect the mines.
He was reacting to a statement by LCM chief executive officer, Derek Webbstock, who on Saturday said the future of Luanshya Mines was in Muliashi and not Baluba.
“I have a lot of respect for LCM chief executive officer, Derek Webbstock, as a professional, but it worries us when he starts making premature statements on the future of mines in Luanshya.
“Such an issue should be left to would-be investors because they will carry out their own independent assessment,” Mr Mwale said.
The minister said Government was uncomfortable with statements that could scare away investors.
Mr Webbstock had said the new investor would need subsidies of about US$5 million a month to keep LCM afloat, given the prevailing metal prices and other economic factors.
He said no investor could run the mine profitably at the prevailing economic conditions unless their operations were subsidised.
And Mr Mwale said Government was happy that Chambishi Metals had shown interest in re-opening the closed mine.
“That is good news from Chambishi Metals and as Government, we are interested in making sure that our people continue having jobs,” Mr Mwale said.
This follows Mr Webbstock’s announcement that about 600 miners out of the 900 who lost their jobs after the closure of Chambishi Metals would be reinstated following successful talks to reopen the mine in two months time.
Chambishi Metals is a sister company of LCM.
And Patriotic Front Roan member of Parliament, Chishimba Kambwili has dispelled assertions by Mr Webbstock that Baluba Mine was not viable.
Mr Kambwili said LCM should be sincere with the state of Baluba Mine, which they operated from the time they bought the mines.
“I totally disagree with Webbstock because his statement is not true and my advice to him is to leave such statements to would-be investors since LCM has now pulled out of the mines.
“I can assure you that the mines in Luanshya still have reasonable life span and can be viable,” Mr Kambwili said.
Meanwhile, the Mineworkers Union of Zambia (MUZ) has welcomed the move by Chambishi Metals to re-engage retrenched workers when the mine resumes operations.
MUZ general secretary, Oswell Munyenyembe, commended the mine management for working towards easing the suffering of miners in Kalulushi.
He said the union was happy that Chambishi Metals management was concerned with the welfare of miners.
Mr Munyenyembe said the mine’s management had been transparent in conducting its activities since the mine was placed under care and maintenance.
He urged the mine management to retain all the 900 workers.
And Mr Munyenyembe urged opposition political parties to work with Government in finding solutions to problems affecting the mining sector.
He said the situation in the mining sector was beyond petty politics and that it was important that all stakeholders worked together to find solutions.
“We don’t need to politicise what is happening in the mining sector. They (opposition parties) should work with Government in addressing problems for the benefit of the people.
“Government has been working hard to find suitable investors to take over operations of mines which were closed. We are happy that Government has continued showing commitment to addressing the crisis in the mining sector,” he said.
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