Tuesday, May 10, 2011

State wont take over ailing industries

Tuesday, January 27, 2009

By ALEX NJOVU
 
MINISTER of Labour and Social Security Austin Liato says Government will not take over mines or any other industry, despite the problems they are facing.
And Mineworkers Union of Zambia (MUZ) president Rayford Mbulu says it is sad that some Zambians were against Chinese and Indian investors taking over Luanshya Copper Mines (LCM).
Mr Liato was speaking on Saturday during a forum of the Press Freedom Committee of the Post Newspapers in Kitwe.
He said it was not Government policy to nationalise any industry.
“It is not the policy of Government to nationalise any industry including mines. We can only take charge in the interim capacity as we look for potential investors to take over operations of the mines,” he said.
Mr Liato urged Zambians to have confidence in the government saying it could not run away from the responsibility of looking after its people.
He said Government policy was to encourage Public Private Partnership in a bid to create jobs and wealth for the people.
Mr Liato said stakeholders such as trade unions, the Church, the business community and ordinary Zambians were important partners in finding solutions to problems affecting the mining sector.
He hailed miners’ unions for their commitment to addressing problems affecting the mining sector.
Mr Liato said it was sad that some people were against Asian investors taking over mines such as LCM.
“If they meet the minimum requirements, then they are welcome. You cannot reject them on the basis of being Chinese or Indian,” Mr Liato said.
He said it was unfortunate that some politicians were politicising problems affecting the mining sector.
“Some of these people were in Government in the past and were part of the group that sold the mines.
“Today when they come to you, they are heroes and you vote for them especially here on the Copperbelt,” he said.
“Some people are bent on criticising even when Government is working. Chinese and Asian investors have proved to be partners in developing the economy,” he said
Mr Liato said Government was concerned with what was happening in the mining sector and that it was working hard to ensure that solutions were found.
And Mr Mbulu castigated some Zambians against Asian investors taking over operations of LCM, which had been placed under care and maintenance.
He said Asians had proved to be serious investors who had demonstrated that they had the interest of workers and the community at heart.
“Look at what Vedanta group of companies has done at Konkola Copper Mines…they have added a lot of value to KCM,” Mr Mbulu said.
And Mr Mbulu said Mopani Copper Mines (MCM) which had a workforce of about 20,000 had allegedly terminated contracts of most of its contractors to mitigate costs of operation.
He said Mpelembe Drilling Company allegedly had its contract terminated.
Mr Mbulu said the union had allegedly received job loss notices from MCM where about 700 workers were expected to be retrenched.
And Citizens for a Better Environment executive director Peter Sinkamba expressed concern at the environmental liabilities allegedly left by Anglo American mining company which he said had caused some people health problems.
Mr Sinkamba feared that some mining companies placing their activities under care and maintenance could leave environmental liabilities.

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