DOW JONES NEWSWIRES
The Zambian government expects a formal response from Mopani Copper Mines
about the fate of ailing Nkana and Mufulira mines Friday, Minister of Mines and
Minerals Development Maxwell Mwale said Friday.
Mwale told national television that government had written to MCM management
asking them not to put the two mines under care and maintenance in a bid to
prevent further job losses in the sector. MCM is a joint venture between Swiss
commodity trader, Glencore International AG and Toronto-listed First Quantum
Minerals Ltd. (FM.T).
Mwale said the government will take over the mines if MCM goes ahead with its
intention of halting operations. Mwale added that the government's main aim is
to secure the assets of the mines as it seeks a strategic investor to resume
output.
MCM runs Nkana and Mufulira mines as well as the Mufulira Smelter, the company
informed government last week it would close the two mines on April 14 and put
them under care and maintenance, citing low copper prices as well as rising
mining costs. Company officials declined to comment.
MCM is Zambia's current second leading copper and cobalt producer employing up
to 20,000 workers.