Luanshya Revival, Result of a Visionary Govt

Gethsemane Mwizabi

16 May 2011

The roads are busy with cars and people going about their business. Banks are crowded and a lot of people are queuing behind Automated Teller Machines (ATM) at lunch time.

Marketeers and small-holder farmers are selling their produce from the previous harvest season. People are buying and selling land, while building of new houses is taking root.

Miners are rushing and changing shifts, assured of their pay cheques at the month end. This is Luanshya in 2011 and it is plain to see even for a stranger to the town that some activities are going on.

There is no doubt the town has seen its good and bad times.

With the demise of some mines which became costly to operate, coupled with low prices of copper on the world market, a lot of people were laid off, and the once prosperous town was in a free-fall two years ago.

However, the town had a breath of fresh air with the development of Muliashi Mines by Luanshya Copper Mines (LCM).

This new revival was complimented by a rise in copper prices on the international market.

Many know that it has not always been this way for Luanshya, a town with a population of 115,579 according to the 2000 census.

Around October 2008, copper prices went down again.

This resulted in the closure of the mines in January 2009. As a result, about 1,500 employees were declared redundant and left jobless.

Amid despair and disbelief, the Government found a credible investor, China Non-Ferrous Mining Company Luanshya Copper Mine (CNCM) to run it.

Thus on December 22, 2009, the town officially came to life and there was a lot of expectations and perhaps doubt with the new investors.

In less than two years, the new mine owners have shown lots of seriousness in terms of investment.

“We are happy with the developments in Luanshya.

There is a lot of activity now and as residents, we are happy with the new investors’ commitment to the well-being of our dear town,” says Elisabeth Mwelwa, a marketeer opposite Luanshya Shoprite.

Mrs Mwelwa, a mother of 10, was born in Luanshya some 60 years ago.

She considers herself a “sold out Luanshyan” as she has seen the town’s ups and downs.

Like many others who have been around many years, she has witnessed the mine close three times.

From her layman assessment, the new mine owners are there to stay, looking at the long term investment they have and are putting up.

Now Copper has become gold again and the town has bounced back to life once more.

She is pleased with more jobs that have been created at the mines. She depends on selling vegetables and two years ago, her merchandise would go for weeks before being sold. Some of it would even go bad before it would be sold.

But now the story is different because hardly a day passes by without her selling anything.

“People are buying and things are moving pretty fast. I am happy some people are in employment and they are giving us some business because they are our regular customers,” she said.

CLM has employed a total of 2,509 employees on permanent and pensionable employment, save for senior staff and employees above the age of 50 years who are on fixed term contract of employment;

All local employees subscribe to Mukuba Pension scheme with the company contributing 25 per cent of an employee’s basic salary while the employee contributes five per cent.

The mining company has recognised the Mine-workers Union of Zambia (MUZ) and the National Union of Miners and Allied Workers (NUMAW) as representatives of all eligible employees of the company.

CLM and the two trade unions recently successfully concluded negotiations on the new collective agreement. MUZ and NUMAW have established four union branch offices at the company.

The basic salaries for employees range from K 1.34million to K 19.80million per month.

According to public relations manager Sydney Chileya, apart from direct employment, the mining firm has also created about 1,000 job opportunities for contractors.

More than 500 local suppliers are doing business with the new investors.

It is anticipated that another 1,500 jobs will be created when the Muliashi project becomes operational later in the year.

CLM has employed 42 expatriates, while 104 are employed by 15 mining contracting companies (MCC) as part of the construction team for Muliashi project.

“It is wishful thinking to hear some people say there is nothing that Luanshya has benefited from the mines.

We have shown a lot commitment in job creation and technological investment at the mine,” he said.

Going by the progress report prior to Baluba Mine and Muliashi attaining the desired production levels, and in accordance with Government’s approved labour strength, a total of 50 expatriates would be employed for Baluba Mine, while 400 expatriates would be for Muliashi.

The 400 expatriates for Muliashi would leave the country upon completion of the construction phase.

However, when both Baluba Mine and Muliashi attain the desired production levels, CLM would retain only 80 expatriates (50 for Baluba Mine and 30 for Muliashi) for the sole purposes of transferring knowledge and skills and technology to the local employees.

The 80 expatriate staff would represent about 1.9 per cent of the total CLM establishment.

In terms of investment CLM, has invested a total of US$70 million at Baluba Mine, and still wants to invest $50 million more.

The Muliashi projected budget is $350 million. In 2010-2011 financial years, CLM would need to be allocated between $20 and $10 million respectively to balance the budget.

Within two years, investment will accumulate to $500 million.

There is no doubt, that people are happy with the new investment in Luanshya.

It was only two years ago when many people would walk from Mpatamatu to the town centre because they could not afford minibus fares.

Some minibuses remained parked then as there were very few people boarding them.

Most families struggled to have food on the table and life was meaningless for those who had lost jobs.

A number of miners, who had loans with banks, had their savings swallowed-up when they were laid off after the closure of the mine. But that was then, this is now.

There is activity everywhere and chain stores like Shoprite have been running out of some stocks, as people’s buying power has improved.

“As miners, we are pleased that when the new investors came in, they re-engaged the labour force which was previously there.

They have actually employed more people now,” said Mine-Workers Union of Zambia (MUZ) Roan branch chairperson Stanslous Mwimbe.

Mr Mwimbe believes the future of Luanshya is bright and the current investment the town is witnessing needs to be maintained, for the sake of continued development.

And Zambia Chamber of Mines general manager Frederick Bantubonse said the recapitalisation of the mine has had a positive impact on the town.

He said the new investors have not only revived the old mine, but were also opening up new areas like Muliashi, which he considers a huge plus to the town.

“Lots of jobs have been created and a lot more would be created. These developments have a spill-over effect to the socio-economic status of the people,” he said.

The installing of six dust catchers for the crusher plant has helped reduce pollution of the environment which was an issue of concern in the past.

With the current developments, Luanshya has been earmarked for aviation development.

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