Bloomberg/Taylor Weidman

Economy

Zambia asks Glencore to surrender copper shafts set for closure

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Zambia’s Mines Ministry said that the government sent a team of engineers and geologists to the mine to verify Mopani’s reasons for the planned closure.

Sunday 12, May 2019

(Bloomberg) –Zambia plans to ask Glencore to hand local contractors control of two copper shafts that the company’s local unit has earmarked for closure.

In a statement, Glencore’s Mopani Copper Mines said that it will cease operations at the Mindola North Shaft and Central Shaft because adding that they have reached the end of their economic life.

Richard Musukwa, the Mines Minister, said, “We are studying the matter, in the meantime, the government has directed that Mopani must surrender North Shaft and Central Shaft to our local Zambian contractors, instead of putting them on care and maintenance.”

Musukwa’s comments signal the latest strain in relations between Africa’s second-biggest copper producer and the largest operators.

The country introduced new mining royalties from January as part of efforts to ensure the country gets more benefit from its natural resources, prompting warnings from the industry lobby that the increase could render more than half the mines unprofitable.

 

TAGS : Glencore, Mopani Copper Mines, Copper production

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