Message Sam 3 Oct 2009 14:00

$5.3 million spent on reviving Maamba mine

$5.3 million spent on reviving Maamba mine

By Times Reporter

MINES and Minerals Development Minister, Maxwell Mwale yesterday told Parliament that US$5.3 million has been used to resume operations at Maamba Collieries, contrary to insinuations that the money has been stolen.

In a ministerial statement, which was necessitated by remarks by Sinazongwe MP Raphael Muyanda (UPND) that the funds had disappeared, Mr Mwale said to the contrary, the money was used to start coalmine operations.

Zambia Consolidated Copper Mines Investment Holding (ZCCM-IH) provided the money.
Giving a breakdown of how the money was used, Mr Mwale said US$500,000 was paid as mobilisation fee to the contractor, US$71,883 for fuels and operations, US$1,872,000 for salaries and wages from August 2008 to April 2009, US$583,547 for coal washing plant repairs and maintenance and US$148,974 for ropeway repairs.

Further, weighbridge procurement was pegged at US$72,067, pit electrification was at US$26,138, protective clothes US$66,331, vehicles operations management spent US$627,247 and laboratory equipment US$66,220.

Mr Mwale said that on electricity from August 2008 to April this year, US$247,929 was paid and operating expenses in the same period gobbled up US$663,016 bringing the total to US$ 5. 3 million.

“From the foregoing it is clear that US$5.3 million was used to recommence coal mine operations at Maamba as opposed to the allegations by the member,” Mr Mwale said.

As a result, he said since April, coal production at Maamba has continued uninterrupted leading to the production of 88,955 tonnes.

Currently, he said that Maamba has on site 40,000 tonnes of washed coal, which was equivalent to K16 billion as well as 8,000 tonnes of raw coal equivalent to K 3 billion.

He said prior to 2009, the company relied on ZCCM-IH to pay for staff salaries and meet other obligations but that the situation was improving.

Mr Mwale said Maamba had stepped up efforts to market its coal and raise revenue to raise money for salary arrears and normalise operations.

“Management has signed a coal sales contract with Larfarge for 18,000 tonnes with K10 billion for delivery up to December 2009 and Zambezi Portland Cement for 4,000 tonnes worth K 1.2 billion every month among other orders,” Mr Mwale said.

He was happy that from the meager resources, Maamba management has been able to pay salary arrears to its staff.

He also dispelled assertions that there was no political will on the part of the Government to improve operations of the firm.

Mr Mwale said this when he responded to a follow up question from Kantanshi MP Yamfwa Mukanga (PF) who accused the Government of lack of political will to improve operations at Maamba.

Commerce, Trade and Industry Minister, Felix Mutati said the country has recently experienced an increase in Foreign Direct Investment (FDI) of the economy resulting in the creation of jobs, transfer of technology and gross capital formation.

During the period 2004 to 2008, investment pledges increased from US$119 million to US$1.7 billion in 2007 and US$12.6 billion in 2008.
Mr Mutati said this when he responded to a question from Nangoma MP Boyd Hamusonde (UPND) who wanted to know whether the rate of FDI in the country has created sufficient jobs.

He said that the sources of major employment opportunities were from the manufacturing sector contributing 30 per cent of the total employment created, 23 per cent in the agriculture and 19 per cent in the mining sectors while 10 per cent was from the tourism sector.

Some projects in the manufacturing sector undertaken include Zambia Sugar expansion at a cost of US$185 million creating 3,500 jobs, Lafarge Cement at a cost of US$120 million which resulted in the creation of 259 jobs and Zambeef Products expansion project at US$81 million which created 2,500 jobs.

http://www.times.co.zm/news/viewnews.cg ... 1254550378
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