VEDANTA Resources representative Tom Albanese (left) with Minister of Labour Fackson Shamenda (middle) and Permanent Secretary Trevor Kaunda in Lusaka yesterday. Mr Albanese, who also represented Konkola Copper Mines, paid a courtesy call on the Minister. – Picture by MACKSON WASAMUNU.
By YANDE SYAMPEYO and CAROLINE KALOMBE
GOVERNMENT says there will be no casualisation of labour at Konkola Copper Mines (KCM).
And Vedanta Resources PLC, the major shareholder of KCM, says it is not externalising profits from the mining company, contrary to assertions by some non-governmental organisations (NGOs).
Meanwhile, Government has said the Mines and Minerals Development Act number seven of 2008, currently under review is meant to ease the cost of doing business in the mining sector and dispelled assertions that it is meant to nationalise mines.
Minister of Labour and Social Security Fackson Shamenda said Government and Vedanta have agreed to do away with casualisation at KCM.
Mr Shamenda said this at a media briefing in Lusaka yesterday after a meeting with Vedanta Resources Plc’s new chairperson, Tom Albanese.
“Previously, Government tolerated casualisation but as you may be aware, when jobs are casual, industrial relations are usually weak because workers are not secure.
“We have agreed we will not have casualisation. Jobs will be permanent and very few people will be on contract,” the minister said.
He, however, advised workers to be very productive or risk losing their jobs.
The minister said workers are expected to put in their best to keep the company ticking and eventually contribute to national development.
“We are not going to keep anyone who is lazy and undisciplined. As permanent as jobs will be, there will be an easy exit for those who are lazy. We will measure the levels of productivity,” he said.
Mr Shamenda also emphasised the need for industrial harmony to minimise work stoppage.
He said Government is looking forward to have a cordial working relationship with Mr Albanese.
Mr Shamenda reiterated that Zambia remains best foreign investment destination.
And Mr Albanese said the profit and loss accounts of KCM are transparent.
He said audit reports which are thoroughly scrutinised are made available within the country and outside.
“On behalf of the shareholders and subsidiaries of Vedanta, the reports are prepared according to Zambia, United Kingdom and United States (US) financial regulations,” Mr Albanese said.
He said despite KCM making profit, most of it is lost to taxes and operational costs.
“I can assure you I have a responsibility to ensure that those reports are transparent. I will be happy to have face-to-face discussions with any NGOs that feel the company is externalising its profits,” Mr Albanese said.
He disclosed that Vedanta has over the past nine years invested over US$2.3 billion into Zambian economy through KCM.
Mr Albanese said his priority will be to work with Government and other stakeholders to ensure KCM becomes more viable to contribute effectively to growth of the Zambian economy.
Minister of Mines, Energy and Water Development Christopher Yaluma during the 20th Investing in African Mining Indaba in Cape Town on Thursday that the Act once enforced would not address nationalisation of the mines but deal with licensing and regulation of mining activities.
“Zambia has gone private and will remain totally private, so take it from me please,” Mr Yaluma said.
Mr Yaluma said the Act will particularly address the bureaucracy in the issuance of mining rights, inadequate size and duration of prospecting licences, lack of stipulated appeal procedures and lack of provisions to retain a tenement in situation where progression to mine development becomes impossible.
He said Government is committed to ensuring that people benefit from mining activities and boost various sectors of the economy by putting in place policies and programmes.
Mr Yaluma said copper production is poised to increase to over one million tonnes when Sentinel Mine, a subsidiary of First Quantum, starts its operations in 2015.