Mopani begins process to remove 8000 workers

As if to confirm that Edgar Lungu is fully aware and has allowed the situation without any amicable solution, Mopani Copper Mines on the Copperbelt this morning released the employee reduction process that will finally see 8760 employees and contractors lose jobs and contracts by December this year.

President Lungu has apparently agreed to the whole arrangements as he has received his own deal from the mining giant together with some top officials representing the workers in the unions for the mines.

Lungu will be on the Copperbelt to wine and dine with these same Mine Workers Union officials and Chief Exclusives of the mining giants but plans have already been made for massive propaganda that it’s a global problem.

But the real problem, as revealed by Former Finance Minister Situmbeko Musokotwane in Parliament and the Zambia Chamber of mining this week, is inconsistencies in the PF mining tax regime plus being owned huge sums in VAT tax refunds by the PF government coupled with crippling powercuts.

There are many countries that are copper dependant such as Chile but all they have done is increase the volume of sales in order to remain profitable.

But in Zambia, efforts to increase the volume of sales can’t work due to powercuts.

And by the way, the first thing the PF did when they came into office was to cancel the same Sino Hydro contract for the development of Kafue Gorge Lower power station that was earmarked for completion and come on the national grid by 2014 and that would have meant more power and no loadshedding hence increased productivity.

The PF further halted the development of Maamba Coal Power plant which would have on the national grid by this time and would have averted powercuts.

Surprisingly, the PF last week gave the same company Sino Hydro a contract to start developing Kafue Gorge Lower, yet they had labelled that company and contract as corrupt.

As you can see, there is nothing global about all these poor policies.

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