With about 60 percent of the country'sworkforce, copper mining has historically been the lifeline of Zambia'seconomy. But lately and because of the fallen prices of copper on the worldmarket, the Zambian economy has been struggling.
Zambian newspapers are full ofstories about hundreds if not thousands of mine workers losing or slated tolose their jobs. The latest is the Konkola Copper Mine, the country's biggestmining company which reports say is about to cut one thousand 321 jobs by theend of April this year.
Zambia's minister for mines andminerals development Maxwell Mwale told VOA the dire globaleconomic situation has impacted Zambia's mining industry.
"Theareas that they (mining companies) are cutting the jobs are like in the socialareas. That is schools, the hospitals and also at the corporate head office,but of course that will include some employees in their business units. Now theimpact on our economy basically there'll be a reduction in terms of governmentrevenue through pay as you earn. But the operation of Konkola Copper Mines willcontinue, though as I've indicated they might put Nampundwe under care andmaintenance which has about 300 employees. Obviously that will mean a loss ofrevenue to government," he said.
Mwaleadmits that if Konkola Copper Mines goes ahead to cut over a thousand jobs inApril it would bring the total number of jobs lost in the mining industry tonearly 10,000.
Buthe said the Zambian government has told companies like the Mopani Copper Minesto turn their operations over to the government which would in turn findpossible private investors.
"Wehave Mopani Copper Mines which is our second largest operating company in thecountry. It has indicated to us that they want to close permanently MufuliraMines and put under care maintenance the Nkana underground operations. Now ifthey were to close those operations there will be severe negative impact interms of our economy in terms of the social economic environment of our peoplein the Copper Belt and also the political implications. So what we have done asa government, we've engaged Mopani to ensure that if they don't want tocontinue the operation of these mines, they should surrender them to us as agovernment so that we can transfer them to any would-be private investor," hesaid.
Mwalerejected any suggestion that the government went back on its earlier promise tonationalize some mining companies as the Mine Workers Union of Zambia have beenadvocating.
"Thisgovernment believes that the mining industry should be private-led. We are notat all going to nationalize the mines, but we believe that we should form avery good social partnership arrangement that would take investors as oursocial partners. So we expect some degree of responsibility from them so thatthe social well-being of our citizens is not affected," Mwale said.
Mwalepraised Zambian mine workers for their patience and understanding of the globaleconomic crisis which has affected the mining industry. But he said governmentwas mindful that the workers' patience might run out, particularly when thelivelihoods of thousands of people are being affected.