Zambia plans to revoke mining licenses of MCM
2020-04-16 10:08:20 [Print]
Zambia plans to revoke the mining licenses of Glencore's subsidiary Mopani Copper Mines (MCM) because the company did not give enough notice before suspending its mining operations due to the COVID-19 crisis and other problems.
In a letter dated April 14 to MCM's chief executive Nathan Bullock, Mining Licensing Committee secretary Michael Chibonga said MCM did not give sufficient notice to the government before placing the mines on care and maintenance. MCM also breached Zambia's labor laws by sending its workers on forced leave and terminating the contracts of mining services and supplies, Chibonga said in a letter.
"In view of the above, the Mining Licensing Committee intends to revoke the large-scale mining licenses," the letter said, referring to MCM's Nkana and Mufulira mines.
Glencore has been given seven days to explain why its licenses should not be revoked. A Mopani spokesman revealed that Glencore was currently in discussions with the government on the way forward.
MCM shuttered its mining operations on April 8 but continued to process material it has on site in its smelter and refinery until further notice, the company said in a statement. The mining company had cited the impacts of a rapid decline in the copper price, critical disruptions to international mobility, transportation and supply chains arising from COVID-19.
In a letter dated April 14 to MCM's chief executive Nathan Bullock, Mining Licensing Committee secretary Michael Chibonga said MCM did not give sufficient notice to the government before placing the mines on care and maintenance. MCM also breached Zambia's labor laws by sending its workers on forced leave and terminating the contracts of mining services and supplies, Chibonga said in a letter.
"In view of the above, the Mining Licensing Committee intends to revoke the large-scale mining licenses," the letter said, referring to MCM's Nkana and Mufulira mines.
Glencore has been given seven days to explain why its licenses should not be revoked. A Mopani spokesman revealed that Glencore was currently in discussions with the government on the way forward.
MCM shuttered its mining operations on April 8 but continued to process material it has on site in its smelter and refinery until further notice, the company said in a statement. The mining company had cited the impacts of a rapid decline in the copper price, critical disruptions to international mobility, transportation and supply chains arising from COVID-19.
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