Zambia: Mine ordered to stop programme restricting supplies to foreign contractors in effort to save jobs

Author: Lusaka Times (Zambia) , Published on: 7 October 2019

‘Government orders Mopani Mine to halt program disadvantaging local suppliers’ 5 October 2019

Mines Minister Richard Musukwa has directed Mopani Copper Mines management to immediately halt the Contract Optimization Programme. Mr. Musukwa says the programme which seeks to restrict the mine’s supplies business to foreign contractors will negatively impact on job security on the Copperbelt where local contractors employ over Seven thousand workers.

He says the implementation of the programme will not be supported by the government because it negates the provisions of the Mines and Mineral’s Act. Mr. Musukwa has since urged Mopani Copper Mine Management to engage all stakeholders emphasising that dialogue should be the bedrock of mining operations in Zambia. He said government targets to have 90 per cent of Mine contracts in the hands of local suppliers.

Mr. Musukwa says this will help curtail possible schemes of transfer pricing and externalization of foreign exchange earnings. He was speaking in an interview with ZNBC News in Lusaka. Mopani Copper Mines has embarked on a contract optimisation programme before striking consensus with the government and other stakeholders.

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