- Title: ZAMBIA: Massive job losses expected in Zambian mining sector
- Date: 31st January 2009
- Summary: CHINGOLA, ZAMBIA (JANUARY 09, 2009) (REUTERS) EQUIPMENT AT THE KONKOLA COPPER MINES / CHIMNEYS SMOKE COMING OUT OF A CHIMNEY VARIOUS OF MINERS COMING OUT FROM AN UNDERGROUND SHAFT MINERS' DIRTY BOOTS VARIOUS OF MINERS' FACES LUSAKA, ZAMBIA (JANUARY 29, 2009) (REUTERS) ZAMBIAN FLAG INSIDE OFFICE OF MAXWELL MWALE, MINES MINISTER (SOUNDBITE) (English) MAXWELL MWALE, ZAMBIAN MINES MINISTER, SAYING: "We will not take it kindly that they should be retrenching our people and call it cost cutting. We will not take it kindly as government. They should demonstrate that they are able to cost cut in areas; we know as government, they can do better." CHINGOLA, ZAMBIA (JANUARY 09, 2009) (REUTERS) COPPER CATHODES UNDERGOING PROCESSING COPPER SOLUTION AND CATHODES MORE OF COPPER CATHODES WORKERS LIFTING CATHODES INTO A MACHINE COPPER SLATES BEING MOVED BY MACHINES WORKER POURING WATER USING PIPE ONTO COPPER SLATES LUSAKA, ZAMBIA (JANUARY 29, 2009) (REUTERS (SOUNDBITE) (English) BOB SICHINGA, ECONOMIST, SAYING: "The government needs to provide leadership. The government needs to invite because right now as I am talking to you, I am not aware, maybe other people are aware, but I am not aware of the fact that government has taken measurers to create a team of Zambians, whether its government officials as well as from the private sector. I am talking about groups like the Economics Association, Zambian Institute of Accountants, the Engineering Association. I would expect that government would have put together a powerful team and say to them concentrate on this issue, come up with alternatives and look at the practical applications of what we are talking about so that we can we can salvage our country." LUANSHYA, ZAMBIA (JANUARY 09, 2009) (REUTERS) STREET SCENE / MAN CARRYING BAG OF MAIZE MEAL ON HIS SHOULDERS PEOPLE LEAVING A STORE CLOTHES HANGING INSIDE STORE ALISEN HWALIMA, STORE OWNER TALKING TO CUSTOMERS (SOUNDBITE) (English) ALISEN HWALIMA, STORE OWNER, SAYING: "The impact hasn't really hit us because these people (miners) still have their December or November salaries but after December, the question is what is gonna happen because even now what we see is purchasing of more school items than any other product in the shop, which gives us a scare." FRAMED PHOTOS DISPLAYED FOR SALE MAN SELLING THE PHOTOS
- Embargoed: 15th February 2009 12:00
- Keywords:
- Location: Zambia
- Country: Zambia
- Topics: Economic News,Employment
- Reuters ID: LVAA3LUAZPJN45TT6HEG58SEKQI4
- Story Text: More pain on the way for the Zambian mining sector. A trade union official predicts as many as 12,000 Zambian mining workers will lose their jobs by March due to the global economic meltdown which has resulted in low copper prices.
About 12,000 Zambian mining workers will lose their jobs before March this year predicts the country's National Union of Miners and Allied Workers.
More than three thousand workers have already lost their jobs in recent months due to the global financial crunch that has caused a plunge in copper prices.
Government officials say that inadequate power supplies and apprehension over the new fiscal regime have also factored in the job cuts.
However, Mines Minister Maxwell Mwale said that despite the various challenges, the sector recorded growth of 4.9 percent in 2008 as compared to
6 percent in 2007 because of the increase in copper and cobalt production.
Mwale urged mine owners to exhaust all other options before resorting to layoffs to cut costs.
"We will not take it kindly that they should be retrenching our people and call it cost cutting. We will not take it kindly as government.
They should demonstrate that they are able to cost cut in areas, we know as government, they can do better," Mwale said.
Zambia's mining expansion has also been severely affected as owners are heavily dependant on the stock exchange and bank loans for financing.
Experts say the government is not doing enough to protect jobs and the greater economy.
"The government needs to provide leadership. The government needs to invite, because right now as I am talking to you, I am not aware, maybe other people are aware, but I am not aware of the fact that government has taken measurers to create a team of Zambians whether its government officials, as well as from the private sector. I am talking about groups like the Economics Association, Zambian Institute of Accountants, the Engineering Association. I would expect that government would have put together a powerful team and say to them, concentrate on this issue, come up with alternatives and look at the practical applications of what we are talking about so that we can we can salvage our country," said Sichinga.
Copper mining makes up some 63 percent of Zambia's export earnings and the sector is a major employer. Other parts of the economy are also anticipating a major hit.
"The impact hasn't really hit us because these people (miners) still have their December or November salaries, but after December, the question is what is gonna happen, because even now what we see is purchasing of more school items than any other product in the shop which gives us a scare," said Alisen Hwalima, who runs a store in the Copperbelt region.
Industry officials are hopeful that a recovery of copper prices would trigger a revival of the sector.
No production forecast figures have yet been given for 2009.
The government has asked foreign mining firms to identify and report high cost areas so it can decide on measures that would assist in cutting output costs. - Copyright Holder: REUTERS
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