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Subsidies Put Mining Jobs on The Spot

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FQMThousands of jobs are still under threat at Zambia’s major mining companies, First Quantum Minerals in the North Western Province and Konkola Copper Mines on the Copperbelt.

While KCM had announced 2000 jobs were on the line but for government to pressure the company into rescinding, FQM are insisting it can’t keep an extra 500 workers on its Kalumbila Project due to pressure on the wage bill.

Both FQM and KCM do not want to admit they can sustain their work force due to pressure from government but strategies to lay off workers are underway.

KCM may have rescinded the decision not to lay-off 2000 workers but the company is still trying to reduce costs of running the institution in view of the high fuel and electricity costs coupled with the reducing copper price on the international market.

So far, according to sources, KCM has started a process of laying off some workers in management, cut down allowances and removed various incentives. This has demotivated some workers who are now being forced to leave the mining giant.

At FQM, the mining company is using the protection order issued by Zambia Environmental Management Agency (ZEMA) to stoping the construction of the Chisola Dam to lay off 500 workers but the real reason, sources have disclosed, is because they are unable to sustain the operations.

The PF government is panicking over the latest job losses at FQM with Northwestern Province Minister Nathaniel Mubukwanu saying government deeply regrets the development and will not succumb to such decisions which are tantamount to blackmail.

“We learnt with deep regret the intention by FQM to lay off 500 workers at its Trident project as a result of the protection order issued by Zambia Environmental Management Agency (ZEMA)stopping the construction of the Chisola Dam because the company did not get appropriate approval such as acquiring the water rights,” he said.

He said that government is aware of many gaps that have negatively affected both the implementation of the Kalumbila mining project and the livelihood of the local community and assured the community that it is doing everything possible to resolve the matter.

There is a feeling of discontent in Zambia following the unstable economic indicators created by the Patriotic Front election

The post Subsidies Put Mining Jobs on The Spot appeared first on Zambia Reports.


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