Economy

Mine Suppliers Reject Mopani’s Planned New Business Model

The Association of Mine Suppliers and Contractors have rejected Mopani Copper Mine’s plans to introduce a new business model called contractor optimization.

Association president Augustine Mubanga has alleged that the programme is aimed at reducing the number of local contractors working with the mining giant.

Mubanga charged that Mopani Copper Mines has indicated to them that it intends to reduce the number of local contractors from 51 to four only.

He said the plan will see local contractors losing jobs, stating that such schemes are aimed at sidelining local contractors from participating in the Mining industry.

Mubanga was speaking when he addressed local mine suppliers and contractors at Garden Court in Kitwe.

Meanwhile, Mopani Copper Mines has confirmed that it has commenced a programme to optimise its mining contracts.

Public Relations Manager Nebert Mulenga said the aim of the contract optimisation process is to improve workplace safety and operational performance while maintaining and achieving strong local participation.

“The new programme seeks to promote higher operational excellence across all Mopani operations and help improve the delivery of projects on time and within budget,” he said.

Mulenga said Mopani Copper Mines Plc will encourage the formation of partnerships among all contractors (local and foreign) after the completion of the tender adjudication process to build sustainable local contractor capacity through effective technology and skills transfer.

“Foreign companies winning tenders with Mopani will be compelled to outsource or subcontract a percentage of their contract value to 100 per cent Zambian-owned entities as part of Mopani’s mandatory Enterprise Development Programme (EDP) and in line with the Citizens Economic Empowerment Act, 2006,” he added.

Mulenga further added that Mopani Copper Mines Plc is nearing the completion of a US$1.8 billion investment in the new mine expansion projects – Synclinorium Shaft, Synclinorium Concentrator, Mindola Deeps Shaft and Henderson Shaft.

He said the expansion projects will extend the life of the mine by over 25 years and improve safety and production efficiencies.

4 Comments

  1. Bbolex

    From 51 to 4 what?

  2. Haggai

    Let’s wait and see

  3. Dorothy

    It happens at all Chinese mining companies you do not complain but when it is mcm nd kcm out sourcing you complain.

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