(3 minutes read)
· Zambia’s mines ministry rejected the proposal of Glencore’s Zambia subsidiary Mopani Copper Mines proposal to suspend operations because of low copper prices and disruptions caused by the coronavirus crisis.
· Mopani is said to appeal against the decision
· Mopani Copper Mines produced 119,000 tonnes of copper in 2018
· Over 73% of the company’s stake is owned by Glencore, 16.9% Minerals and 10% by Zambia’s mining investment arm ZCCM- IH
Zambia’s mines ministry rejected the proposal of Glencore’s Zambia subsidiary Mopani Copper Mines proposal to suspend operations because of low copper prices and disruptions caused by the coronavirus crisis. Mopani is said to appeal against the decision. It also made it clear that it would continue mining operations pending the outcome of the appeal process.
Operations in the mines were at stand still at the start of April because of the COVID-19 pandemic and other problems. But mining resumed a month later at the instance of the Zambian government, which did not take kindly to the decision of the management to close the operations. The company’s view is that during lockdown, it can devote more time for care and maintenance of the plant so that the company can transit to a trajectory of higher value proposition later.
However, Zambia’s mines minister, Richard Musukwa, said that the government wants Mopani to continue mining despite the pandemic and consequent lockdown. The government insisted that the mine should not be put under care and maintenance. In the meantime, Mopani has cut the number of expatriates working at the mine from 94 to 49. The minister also referred to the company’s concerns over high cost of production, which he said would amicably settled through dialogue. Mopani Copper Mines produced 119,000 tonnes of copper in 2018. Over 73% of the company’s stake is owned by Glencore, 16.9% by First Quantum Minerals and 10% by Zambia’s mining investment arm ZCCM-IH.
