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July 17, 2020

Zambia’s mines minister rejects Mopani suspension plan

Zambia’s mines minister Richard Musukwa has rejected Glencore subsidiary Mopani Copper Mines’ (MCM) proposal to suspend operations due to low copper prices as a result of the interruptions to transportation and supply chains caused by the Covid-19 outbreak.

Zambia’s Mines Minister Richard Musukwa has rejected Glencore subsidiary Mopani Copper Mines’ (MCM) proposal to suspend operations due to low copper prices as a result of the interruptions to transportation and supply chains caused by the Covid-19 outbreak.

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As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
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According to Reuters, Mopani plans to appeal against the decision and said it will continue mining operations based on the appeal process outcome.

The news agency quoted Musukwa as saying: “We are open to dialogue because we want what’s best for the people of Zambia and Mopani is strategic to [our] economic trajectory.”

Operations at the company’s mines were stopped early in April this year because of the pandemic and various other problems.

However, after a month, mining restarted after receiving severe criticism the Zambian government.

Mopani Copper Mines is 73.1% owned by Glencore, 16.9% by First Quantum Minerals and the remaining 10% by Zambia’s mining investment arm ZCCM-IH.

In 2018, MCM produced 119,000 tonnes (t) of copper.

In April this year, Zambia intended to revoke the mining licenses of MCM as the firm did not give sufficient notice before suspending its mining operations due to the coronavirus Covid-19 crisis.

In the same month, Glencore launched a $25m fund in response to the novel coronavirus (Covid-19) outbreak.

In August last year, Mopani Copper Mines reportedly shut down two shafts at its Nkana mine in Zambia.

Last April, MCM announced resumption of operations at two of its projects following an investigation into the deaths of five workers earlier last year.

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

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