- October 8, 2023
- Posted by: ife
- Category: Mining
The Government’s failure to timely source for an investor for Mopani has caused delay in recapitalizing the mine, resulting in a significant impact on the income and a loss of over $12.9 million.
Copper Production output at Mopani Copper Mines Plc a multi-faceted mining investment with operations in Kitwe and Mufulira districts of the Copperbelt Province, has continued dropping due to operational challenges caused by lack of investment.
According to the latest consolidated 2023 half-year mineral report obtained by the Zambian Business Times – ZBT, copper output at Mopani has decreased by about ten percent from about 20, 000 metric tons produced in the first half-year of 2022 to now about 17, 000 in the first half of 2023.
At a time when copper prices are at about $8, 300 per ton, the mine has lost over $12.9 billion in the first half-year of 2023.
This is troubling for the local economy and the workers who depend on the mine for their livelihoods. Stakeholders are however hopeful that the mine will find a way to turn things around and continue providing valuable resources to the world while supporting its employees and the communities they operate in.
The decrease in Mopani copper output has been a cause for concern in the copper mining industry. Many experts attribute the decline to a combination of factors, including delay in recapitalizing the mine, and labor disputes.
The hope is that with suitable investments and strategies, Mopani copper output can once again reach its former levels and contribute to the growth of the Zambian economy.
It has been reported that Mopani Copper Mines needs $300 million to recapitalize the company. This news has caused concern among employees and stakeholders alike, as the future of the mine remains uncertain. It is hoped that a solution can be found quickly to ensure the stability and success of Mopani going forward.
Although so many pledges have been made by the current Mines and Minerals Development Minister Paul Kabuswe to timely source for an investor who will take over operations of Mopani and boost the current productions, no conclusive statement has been made with regards to the way forward of the Mine.
Although the Minister’s promises to find an investor have been welcomed by many in the community and the country, who see Mopani as a vital source of jobs and economic growth, stakeholders have been eagerly waiting for such promises to be implemented which they feel has taken longer than expected.
The delay to recapitalize the mine has also led to a decrease in government revenue, which has further strained the already struggling economy. It is a difficult situation, and many are hoping that a solution can be found soon to help alleviate the economic challenges facing the communities and the country at large. An urgent solution is however needed to alleviate these economic challenges.