MOPANI Copper Mines (MCM) will this month-end shut its Central shaft as it concentrates on developing the new capital projects aimed at extending the mine’s life spun by 25 years.
ZANIS reports Mines Suppliers and Contractors Association president Augustine Mubanga confirmed the development stating that that all the contractors working at central shafts have been served with notices to demobilise their equipment.
Mr. Mubanga said the contractors were given September 10th , 2019 as the last day of accessing the premises.
“Right now there is nobody working there, the last day was September 10, 2019 to some of the contractors who had queries,” he said.
Mr Mubanga said the future of the local mine suppliers and contractors is blink because of what is happening at MCM, where all the local contractors have lost their business.
The Mine Suppliers president also castigated the new business model called Business Transformation and Contractor Optimisation, which he said is disadvantaging the local mine suppliers.
“Under the new business model, the mine has come up with pre-qualifications, which local contractors have to meet, for them to do business with the mine, “ Mr Mubanga said.
One of the requirements is that local contractors have to get quality certifications from an international company, which the Mines Suppliers and Contractors Association president said could be costly for some of them.
Mr Mubanga said the local contractors will also have to borrow money from financial institutions, using their own collateral, for them to purchase equipment to be used at the mine.
Lamenting that the conditions for doing business in the new business model disadvantages the local contractors and only favours foreign companies, Mr Mubanga has since called on government to intervene and create a favourable environment for local contractors.
In May this year Mopani Copper Mine announced plans to cease operations at Mindola- North and Central Shaft, saying the two shafts have reached the end of their economic life.
Recently, the mine terminated business contracts for companies working at Mindola- North and Central Shaft which resulted in the loss of over 1,200 indirect jobs and 88 direct jobs.
In August this year, the mine shut down Mindola- North shaft, remaining with central shaft, which is scheduled to be shut down this Month end.
And when contacted for a comment on the shutting down of central shaft this Month-end, MCM public relations manager Nebert Mulenga declined to comment.