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Friday, 11 December 2009

Mining Reflections: Proposition Three (Update)

Another update to "proposition three" that demonstrates the poor conditions of mining workers :

Times investigations revelaed that the workers concerned were those that worked for a Chinese-owned firm, Exploration Construction currently undertaking construction of LCM institutional facilities, who had complained of poor conditions of service.

Investigations revealed that the workers were subjected to poor conditions of service by paying them low salaries and housing many of them in one house. Some of the workers interviewed at one of the contruction sites at the Director's Lodge and did not want to be mentioned said they were not happy with their conditions of service.

They said management paid them as low as K180,000 per month while the highest paid worker went with K230,000 per month. "We sometimes get as low as K180,000 and these people expect us to live on that. Well-paid workers got K230,000 per month," one of the workers who pleaded anonymity said.

The workers accused their Zambian supervisors of allegedly being unfair and behaving like their Chinese directors. The frustrated and disgruntled workers said once a worker was late or went to the hospital, management deducted K20,000 from the salary.

One of the director's of Exploration Company, Ge Yi Lin said he had about 100 workers working on the construction of the LCM facilities. Mr Ge asked his Zambian interpreter how many they were in one house and the interpreter said 11. Mr Ge suggested that if the workers were still uncomfortable with the number that shared their houses, he would give workers K40,000 each so that they could find better accommodation for themselves. He could however, not respond as to whether K40,000 was enough for the workers to find better accommodation.

7 comments:

  1. - no money for mining workers

    - no money for zambia because no taxes

    - no money for zambians because no dividends for ZCCM-IH


    who receive money in Zambia ?


    a other example :

    FQM make more than 2 billion of US$ benefit in KANSANSHI mining, but give only 3 M US$ dividends to ZCCM-IH who have 20 % in kansanshi mining...

    last week we can see in press that FQM buy and will spend 1 billion of US$ in :

    - finland (300 M$)
    - Western Australia (340 M$ + 150 M$)
    - congo ( more 100 M US$)


    we know now where is the zccm-ih's cash.. where is the zambians taxes ...
    in other country for FQM,

    - not in zambia,

    - not for zambians people,

    - not for mining workers

    With this kind of investor zambia will stay poor and a lot of people will continu to die


    why the politicians are silent about this situation ?

    ReplyDelete
  2. This is seriously disheartening. After all is said and done, foreign investment should benefit all, the workers included. It is sad that GRZ allows its citizens to endure such shoddy working conditions and laughable remuneration. One day soon it may lead to an explosion as you cannot kip a lid on steadily growing strife for ever.

    ReplyDelete
  3. Our company has invested in 2007.2008 and 2009 in the Zambian mining industry. Confident we invested in the holding company owned 87.6% by the GRZ: ZCCM-IH. Following recent calls for Mr. Rupiah Banda in the direction of foreign investors we have decided to strengthen our position.
    After reviewing the record, we will not do because there is a lack of financial transparency obvious. The GRZ is unable to keep its promises of financial publications. It seems that the GRZ has no authority (or willingness) to:
    - Levy significant taxes on sales and exports of metals
    - Require mining companies to pay the share due to ZCCM-IH
    - Publish accounts of ZCCM-IH (3 years late)
    - Formalize the inventory of assets of ZCCM-IH
    Like many European investors, we became suspicious, and decide not to invest in Zambia with certainty.

    There is the situation incomprehensible:
    - As part of the planned privatization and promised the GRZ would be well advised to properly value its assets (which are the heritage of the people of Zambia). This would avoid the GRZ to stoop to beg for alms to the IMF.
    - The people of Zambia seems held in complete ignorance of the riches he has
    - Opposition asks no questions.

    Who benefits THERE?

    ReplyDelete
  4. Philip,

    Thanks for bringing ZCCM-IH to the attention of this blog. :)

    Actually, it would not be such a bad idea to buy a few shares of ZCCM-IH and show up at shareholder meetings, and ask a few questions. Owning even 1 single share should give you the right to do just that.

    They have a website at:
    ZCCM-IH.

    From their investor relations page:

    Relations with Government
    ZCCM Investments Holdings plc (ZCCM-IH) is a successor company to Zambia Consolidated Copper Mines Limited (ZCCM) in which the Government of the Republic of Zambia (GRZ) holds 87.6% of the shares, with the remaining 12.4% being held by private investors. The Company is listed on the London, Paris Euronext and Lusaka Stock Exchanges.

    End quote

    In other words, anyone can buy a few shares and become a shareholder and show up at shareholder meetings.

    From their Corporate Governance page:

    Corporate Governance
    In 2003, ZCCM-IH adopted the Code of Corporate Governance for Boards of Directors in Zambia which is largely derived from the guidelines developed by the Commonwealth Association of Corporate Governance. This code is a basis which regulates the conduct of business in the Company in order to
    enhance transparency and accountability.

    In line with the code:

    The Company is headed by an effective independent non-executive Board of Directors
    The Board monitors and evaluates the implementationof strategies policies, management performance criteria and business plans
    The Board holds meetings regularly to discuss activities, policies or strategies related to the company’s purposes and for which the Board is reponsible.
    The Board using its discretion has appointed the Audit, Remuneration and Investments Committees.
    The Board ensures that all stakeholders are effectievly informed about the operations of the company.

    End quote

    ReplyDelete
  5. MrK

    I bought some shares zccm-ih for receive informations about the company and to know if the company realy receive dividends from its assets...
    But...

    But..

    But, the company no give annual results since june 2006 !!

    and the last annual reports between june 2005 and june 2006 is not a real annual report !

    its assets are valued with the original price...

    for example 10 % of Mopani is valued 2 M US$ ...

    Mr J Chikolwa, the ex CEO of ZCCM-IH, said two years ago that the value of the assets is more than 1 Billion of US$...

    BUt

    But..

    But.. the company, and the GRZ, doesn't want now that this annual report be communicate..

    because..

    if the people of Zambia see that the value of zccm-ih is more than one billion US$... a lot of questions will come

    - why the company no receive money from mining ?

    where is the money ?

    why mining company no pay taxes ?

    why mining company no pay dividends to zccm-ih ?



    the mining company and GRZ doesn't want taxes.. but why the mining company no give dividend to zccm-ih 87 % ?

    why zccm-ih receive only 3 MUS$ from kansanshi where in the same time kansanshi mining have a benefit more than 2 billion US$ ?

    with annual report, the GRZ help the opponent to take the control of the country... that is the reason that ZCCM-IH no publish annual report with real value of asset...

    Yes I bought some shares of zccm-ih... i hoipe to know the real situation.. and now i know what.. et it is the reason i'm on this blog, and i want, now, that the people of zambia know this situation.

    if zccm-ih wants drive its future, ZCCM-IH must take 51 % in all mining company, not less, and change the board of zccm-ih where a acting CEO is since 3 years now !

    ReplyDelete
  6. Philip,

    What you are talking about is fraud, plain and simple. The GRZ is defrauding the shareholders in ZCCM-IH, and the Zambian taxpayer. Or is condoning the defrauding of ZCCM-IH shareholders by these privatised mines.

    I think this could be taken to international criminal courts.

    I think you could make a lot of money sueing them. They have been defrauding you and every shareholder of dividends.

    ReplyDelete
  7. MrK

    it is a fraud, a big fraud, between foreign groups like FQM, Vedanta, Glencore, ... and some men in GRZ and zccm-ih...


    They still defraud the shareholders and all the zambian people.

    I call the opponent to ask a lot of questions to the GRZ, public questions, because i think that it is the time where GRZ have to give to the people Zambians explanations, real explanations...

    The problem started with the privatization in 2000... the politicians must stop this fraud with pressure on foreign groups

    ReplyDelete

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