Glencore to Suspend Operations at Zambia Copper Mines

SEATTLE (Scrap Monster): Glencore will suspend mining operations in Zambia for a period of three months. Earlier, the company had declared force majeure at its Mopani Copper Mine.

The country’s Mines Minister Richard Musukwa said that the company will not be allowed to go ahead with the mine closure plan, as it is not in compliance with the laws of the country. The minister also questioned the company’s move to lay off over 11,000 workers by giving less than a day’s notice.

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In a press briefing, the minister noted that the government is not satisfied by the reasons put forward by the company to place the copper mines on care and maintenance. There has been no proper communication from the company on its proposed course of actions. The company needs to undertake all mandatory processes prescribed by the law, before it could lay off workers. Furthermore, the company would not be allowed to use COVID-19 as a tool to implement layoff, Musukwa added.

Glencore’s Mopani Copper Mines subsidiary had declared comprehensive review of its business, in response to rapid decline in copper prices and uncertainties on account of rapid spread of the COVID-19 pandemic.

Glencore owns 73.1% stake in Mopani Copper Mines. First Quantum Minerals owns 16.9% stake, whereas the remaining 10% stake is owned by the country’s mining investment arm ZCCM-IH.