Message Mar 5 Avr 2011 06:37

Zambia Miners Union Says It Has Resolved Labor Dispute At Ch

Zambia Miners Union Says It Has Resolved Labor Dispute At Chambishi
First Published Monday, 4 April 2011 10:16 am - © 2011 Dow Jones

DOW JONES NEWSWIRES

The labor dispute between workers and management of Chinese-owned Chambishi Copper Smelter, which caused strike action at the plant last month, has been resolved, a union official told Dow Jones Newswires Monday.

Following talks with management, union representatives agreed to defer some of their demands, like the review of the current labor contract until next year, Sikufela Mundia, the president of the National Union Miners and Allied Workers said by telephone from Kitwe on Zambia's Copperbelt province.

"Management also accepted to adhere to some of the demands of the workers like the installation of a free canteen inside the plant," he said.

Workers at the 150,000 tons-a-year copper plant went on strike last month disrupting output for several days. They were demanding a 50% pay rise, and rejected management's offer of a 12% pay rise.

Following the intervention of union representatives, the workers agreed to end the strike to allow the commencement of labor talks with management.

According Mundia, last week the talks were concluded and management agreed to review the workers terms of service at the end of the year. Company officials could not comment immediately.

Chambishi Copper Smelter is a joint venture between China Nonferrous Metals Co. (8306.HK) and the Yunnan Copper Group (000878.SZ).

The smelter treats copper concentrates from several mines in Zambia, among them Toronto-listed Equinox Minerals Ltd.(EQN.T), which owns Lumwana Copper Mines; First Quantum Minerals Ltd. (FM.T), owners of Kansanshi Copper Mines; and South Africa-based Metorex Ltd. (MTX.JO), owners of Chibuluma Copper Mines.

In February, China Nonferrous Metals said it had started a $250 million expansion program aimed at doubling copper output at the plant.