28/01/2021
MOPANI MINES DEAL IS A UCAR GOAL SCORED BY ZAMBIA FOR ZAMBIANS
By Miles B. Sampa
Thursday 28th January 2021
As Mayor my current job is to deal with the notorious City garbage, floods, toilets, bus stations, markets, roads, housing and now the fight to protect residents of Lusaka City from Covid 19.
However and when there is a topic of a national nature and I feel it’s about to change the course or game- plan for the entire Country, I am not shy to take off the “Lusaka Mayor” hat briefly and put my personal thoughts on record for posterity’s sake.
In 1964, KK and UNIP had to and did nationalise all Mines from “ba mwisa” (colonisers’) companies whose main shareholder was Cecil Rhodes. From RCZ, NCZ to ZCCM. We (Zambians) owned the Mines and used processed minerals as we pleased via our National Budget.
Everyone from all Provinces of Zambia flocked ku Migodi (Copperbelt) to work in any of the ZCCM mines. I must add that if you have never had a relative or ancestor that once worked in one of the Migodi Mines, then you are not a true but gonga Zambian.
We deliberately even set aside (within the Mines’ budgets) money to promote our number one sport- football. There came Rokana United (Nkana), Power Dynamos, Konkola Blades, Mufulira Wanderers, Roan United, etc.
It was from this great sport that the likes of Godfrey 'Ucar' Chitalu, Samuel 'Zoom' Ndhlovu and Kalusha 'Great Kalu' Bwalya made their inescapable mark. Their records are enshrined forever in Zurich at FIFA headquarters.
The Mukuba (Copper) minning industry game is all about the global price on the London Metal Export (LME).
According to a paper by a Zambian lecturer at the University of Cape Town Dr Grieve Chelwa, from 1960 to 1969(Colonial, RCM & NCM Hands) , global Mukuba price increased by circa 70%. From 1970 to 1995 (ZCCM hands) , the global Copper slumped by about 67%.
From about 1998 to 2009 (in foreign investors hands) , global Copper prices increaded by a thunderous 230%.
From 2010 to 2021 however, Copper prices have slumped by around 40% and thats why ba mwise belefwaya ukubalala and come back when prices pick up.
Given the global price scenerio from 1970 to 1995, costs incurred by the Mines superseded the revenue raked in. ZCCM then became a financial burden to the national Treasury.
It therefore became necessary and wise for President FTJ (MHSRIP) and the MMD to come to the decision to privatize ZCCM in about 1992. The debate then was whether to sell it as one, to one buyer or split it in various locations and sell to different buyers. A decision was made to sell to various buyers.
As fate would have it, the price of Copper on the LME eventually started to rise and within 5 years, most investors realised at least double what they paid for the Mines. They minted billions of dollars from their investment.
Meanwhile, these new investors were not going to keep workers from Chipata just for the sake of doing so. They had to operate at optimum levels. A lot of Zambian workers were therefore retrenched and some replaced with expatriates.
As for Bola (football), Mufulira Wanderers FC found itself in Division one on several occasions and so did Roan, Konkola Blades and Kabwe Warriors. Contrary to the situation in 2021 where Nchanga Rangers is in Division one and Nkana FC have to lobby well wishers to travel for an international fixture, such was unheard of during ZCCM days.
Fast forward to 2021. Nipano tuli. Now that Copper prices have plummeted, ba Mwisa we sold the Mines to balefwaya ukubalala. Meaning Mine owners want to halt mining to a 'Care & Maintenance' status due to relatively lower LME prices and also their demands for removal or reduction of certain taxes have not been entertained.
The direct implication of this was the loss of Zambians’ jobs ku Migodi if Government did not Dance to the tune of the 'arm twisting’ song performed by ba Mwisa. "Reduce tax and refund us for this and that or we stop production so that even the little tax we pay for the Zambian people, will be no more". That’s been their song.
President Dr Edgar Chagwa Lungu and the PF Government had enough of the 'arm twisting'. It was time for a strict change of policy. In football, we call it change of game formation from 4-4-2 to 2-5-3. We shall not sit and watch the game, we shall attack (buy back Mines).
So Mopani Mine has been bought back by the Zambian Government for the Zambian people and by the Zambian Management. Kumo kufyalo ngabapokele fye Mine mufikansa nokubatamfya ba Mwisa ukwabula na 1 Ngwee (Mopani Mine has been bought back using internationally accepted business terms).
It is estimated that Copper prices will be on a steady rise in the next 10 years. The $1.5BN spent or commited to a buy- back will be recovered even faster than planned, given the increased demand and prices of Copper.
Additionally, it is expected the Mines will now be better managed by our own people (Zambians) with full transparency and expertise.
Not ba Pompwe ba Mwisa baletulila amasuku pamutwe (some Mine investors have not been transparent and been hiding true figures through transfer pricing to avoid paying proper taxes to the state). They are good at pseudo prices, reduced sales volumes and fake debt to parent companies.
We have Zambians with huge international mining experience that can and will manage Mopani Mine. These possess enough qualifications and are efficient enough to make huge profits in just a few years. It's a good first step in turning the Zambian economy back to a good Kwacha exchange rate. It’s a perfect way to return to the good old days of great football pa Chilata (Nkana and Shinde Stadia).
I urge the Mines Minister, Hon. Richard Musukwa to now move in to buy back all the other remaining Mines in the hands of ba Mwisa (Non Zambian Investors).
In this way, our economic destiny as Zambians will be in our own hands and not the way it is at the moment with foreign hands pulling the strings over our God- given copper.
We are tired of being made to dance like puppets in the “Muppet Show” with the strings being pulled by international hands.
On the Mopani Mine repurchase back to Zambians, credit should be given where and when it is due.
Well done, President Dr Edgar Chagwa Lungu. You have scored a Ucar goal or is it a Kalu goal in the game against Liberia at the Independence Stadium in 2002. It was extra time and we needed a goal to qualify to the Africa cup.
President Mwanawasa (MHSRIP)was watching in the VIP section of the Grand stand and so was the entire nation via ZNBC. The stadium was full to capacity and so was the Humanism Hill where I had since graduated from years back and now seated inside the Grand stand aswell.
A free kick was awarded outside Liberia's 18 own area. Kalu as player coach stepped up near the centre line. He hit a Chipolopolo (bullet) shot that meandered through the opponents wall and goalkeeper to rattle the net. I still remember looking at Sir LPM jubilating aswell for mother Zambia.
Such is the goal you have scored Your Excellency on Mopani mine and the Mines repurchase approach in general. You are on the right side of history and posterity will always thank you for this great chess move on the economic table for mother Zambia.
MBS28.01.2021
