Nchanga Mine Losses Becoming Extreme – KCM.
The Nchanga Underground Mine operations are currently making extreme unsustainable losses, confirmed Konkola Copper Mines.
KCM has been scheduled to be placed on care and maintenance this week
“As a result, KCM has to review its loss-making assets. The Nchanga underground operations are currently making unsustainable losses.
KCM is one of Zambia’s most significant employers. The company is mindful of the potential impact of its decisions on the lives of people involved in its business and is seeking to preserve as many KCM jobs as possible. KCM is a responsible employer and remains committed to its Zambian operations. The company has a strong reserve base and a world-class asset portfolio, having invested $3 billion in upgrading and expanding its facilities over the last decade. The company has a 50-year vision for its operations in Zambia,” said Public Relations and Communications Manager Shapi Shachinda said.
But according to the sources familiar with KCM’s plans in response to falling copper prices, a shutdown notice had been circulated to stakeholders, including the mine unions, 2, 503 contract employees would be laid off immediately.
KCM’s latest move comes barely a week after President Edgar Lungu visited the mine and claimed that he had intervened in the ongoing retrenchments of miners, which has already resulted in thousands losing jobs.
Many mouths within the mineworkers’ unions said the move by KCM is a slap in President Lungu’s face who said his Copperbelt trip was 80 per cent successful.