Zambia’s Association of Mine Suppliers and Contractors have rebuffed Mopani Copper Mine’s plans to introduce a new business model called contractor optimization. The Association president Augustine Mubanga has alleged that the program is aimed at reducing the number of local contractors working with the mining giant.
According to Mubanga, Mopani Copper Mines has indicated to them that it intends to reduce the number of local contractors from 51 to four only. Consequently, the plan will see local contractors losing jobs. Mubanga opined that such schemes are aimed at sidelining local contractors from participating in the Mining industry.
Meanwhile, Mopani Copper Mines has confirmed that it has commenced a program to optimize its mining contracts. Public Relations Manager Nebert Mulenga said the aim of the contract optimization process is to improve workplace safety and operational performance while maintaining and achieving strong local participation.
He explained that the new program seeks to promote higher operational excellence across all Mopani operations and help improve the delivery of projects on time and within budget.
Mulenga said Mopani Copper Mines Plc will encourage the formation of partnerships among all contractors (local and foreign) after the completion of the tender adjudication process to build sustainable local contractor capacity through effective technology and skills transfer.
He further added that foreign companies winning tenders with Mopani will be compelled to outsource or subcontract a percentage of their contract value to 100% Zambian-owned entities as part of Mopani’s mandatory Enterprise Development Program (EDP) and in line with the Citizens Economic Empowerment Act, 2006.