Zambians seek work at the NFC African Mining PLC
It was a scorching day in March 2008. Job seeker Glorence Kandeke, 24, waited anxiously outside a Chinese copper mining company in Chambishi, northern Zambia, in a slim hope of obtaining employment at the NFC African Mining PLC (NFCA).
“I have been travelling about 45km everyday over the past three months for a possible job with the NFCA,” said Kandeke. He said his parents had funded his $5 daily fare to come here. The cost amounts to 15% of the minimum monthly wage for Zambians which stands at 268,800 Kwacha, or $77.
“I don’t know when I will get a job from the NFCA, nor how long my family can support me by paying my fare everyday,” sighed Kandeke.
Kandeke is joined by nearly 75 others everyday who vie for a position in the Chinese company.
“The Chinese said they offer 5 new jobs every day, but nothing lucky has happened to me in the past few months,” Kandeke said.
There are thousands of workers like Kandeke who seek employment in the special economic zone in the Copperbelt. But for those who obtain jobs within Chinese companies, there is an increasing concern that their safety is being compromised and they are being financially exploited.
Chinese investment in Zambia is dwarfed by those of US and European countries, and even some Asian countries. However, China is hailed as an increasingly important investor in this southern African country; a nation which has an unemployment rate as high as 70%.
“Chinese investment in the Zambian mining sector is showing very positive trends,” said Mr. Lennard Nkhata, permanent secretary of the Ministry of Mines and Minerals Development.
Instead of responding directly to criticism by the West over China’s negligence of labor laws, poor environmental record and lack of contribution to the communities of Africa, Mr. Nkhata spoke more positively of China’s role in his country.
“Chinese compliance to health and safety regulations has improved tremendously over the years and the environmental performance of the companies is acceptable so far,” he said. However, he mentioned no specific figures.
The Chambishi NFCA mine, which is running on Chinese technology, is the only large-scale underground mine which has not recorded a fatal accident since October 2006. Mr. Nkahat cited this as an example to show the safety record in Chinese facilities.
Zambia has placed the battle against poverty at the top of its agenda and expects to achieve an economic boom through the mining industry. A new tax regime, it believes, will help achieve this. This measure is due to take effect from April 1, with the Loyalty Tax rising to 3% and the company tax up to 30%.
“Thanks to the huge demand for copper in both China and India, Zambia is enjoying a booming mineral industry,” Mr. Nkahat said.
In 2007, Sino-Zambian bilateral trade stood at $595 million, up nearly 60% from 2006. The figure included $397 million of exports to China from Zambia, most of which were copper.
The permanent secretary said that the increased output resulting from Chinese investment had the potential to bring about an economic boom in Zambia.
It has been widely acknowledged that Chinese investment in Zambia is highly protected by the government.
Zambia’s Environmental Council Senior Communication officer Justin Mukosa said: “We do not want to separate Chinese investment from other investment, and we judge overseas investors by performance.”
And he criticized those who talked down China, saying: “singling out Chinese companies is a political issue more than an environmental one. ”
The Citizens for a Better Environment (CBE), Zambia’s largest environmental NGO based in Kitwe, confirmed that there are no more citizen complaints about Chinese mining companies than other investors.
In fact, there have been serious environmental incidents caused by other countries’ mining firms. Earlier this year, the Mopani Copper Mine, partly owned by a Swiss company, was blamed for polluting water supplies in Mufulira town.
The Zambian Development Agency will soon issue a list of industries into which overseas investment is sought, in a bid to boost national development, the agency’s Investment Promotion Manager Jessica Mwiinga Chombo said. Mining and hydro-electric industries are included on the list, but Ms Chombo failed to elaborate further.
“No discrimination exists between local and foreign investors,” she said, but added that “Zambia expects investors to create jobs and transfer technology and skills for the locals.”
The $220 million Chambishi Copper Smelter （CCS）Ltd, which is under construction in Kitwe, stands as a good example to show how China is fulfilling its commitment in assisting local development.
The smelter is scheduled to go into operation by the end of this year, with an output of 150,000 tonnes of crude copper per year.
Copper ore, as it is extracted from the ground, has a very small copper content. After the first industrial processes, concentration copper is produced with a copper content of around 40%. Smelters turn this into crude copper which is 99% pure.
Building smelters not only reduces outsourcing but also helps increase Zambia’s exports of added-value products, so says Deng Yun, vice director of the smelter’s Administration Department. New smelters will also help create new job opportunities.
“All the crude copper from the new Chambishi smelter will be shipped to China,” Deng Yun said. The smelter is expected to boost Zambia’s exports by $450 million.
“The company will also provide over 1,500 jobs for local people,” said Yun, “There are now about 400 working Chinese and 600 Zambians to build the smelter, and after it goes operational, the number of Chinese workers will decrease to 100,” he explained.
However, Chinese investors are expected to contribute more to Zambia’s society and meet ever higher expectations of Zambians.
John Lungu, economics professor at the Copperbelt University in Kitwe, has called for increased local partnership of Chinese businesses in Zambia to ensure a fairer deal. He also argued that the Sino-Zambian Economic Zone, where both the NFCA and CCS are located, should create not only jobs, but also well-paid jobs.
Professor Lungu’s view is echoed by that of union leaders and miners who often complain about unethical treatment and low wages in Chinese mining companies.
Chilufya Mukuka, head of the Safety Department of the India-funded Chambishi Metals Plc, said that miners working for Chinese companies receive about $70 per month. This is much less than an average of $400 paid by companies from other countries, said Mr Mukuka, who also represents a mine community in Chambishi.
However, Jingtao Liang, an engineer with the NFCA, dismissed the allegation, saying that pay for Zambians averages at $400, with the highest exceeding $3,000.
Though miners’ union leaders fail to give satisfactory explanation of this conflicting information, it is generally agreed that pay varies amongst different categories of jobs.
Standing outside the NFCA, job seeker Kandeke said: “Though the Chinese company pays less, it is better than nothing.”
Kandeke and his countrymen prefer to be employed by the NFCA rather than other foreign companies. They say they would rather work the 8 hours demanded of them by the NFCA than the 12 hours which is commonplace in other foreign companies.
Commenting on the low wages paid out by Chinese companies, Professor Lunga concludes that Chinese investors have transformed from “comrades” to “capitalists” in less than half a century.
His opinion forms a striking contrast to the position of his government which calls China a “genuine and all-weather friend” who is ready to help without preconditions.
Zambia established a diplomatic relationship with China within a week after its independence in 1964, becoming the first country in southern Africa to do so.
The Sino-Zambian friendship culminated in the building of the Tazara Railway which links landlocked Zambia with neighboring Tanzania in the 1970s. It had been the largest foreign-aid project ever undertaken by China. Since then, China has gradually increased its investment within the country. By 2007, China’s direct investment in Zambia had reached nearly $290 million.
However, China represents only a small portion of overseas investment, which Zambia relies on to transform its economy.
Zambia faces the challenge of balancing the interests of foreign investors with the welfare of its people. And solving the problems relating to Chinese companies are only the beginning, as Zambia tests its ability to achieve a balance.
Whilst trying to build up its economy, Zambia needs to introduce effective measures to help protect the well-being of its people and the environment.
China in Africa: a catalyst for change
Copyright World News Review 2008
For reproduction of the articles, please email: wdy21century@gmail.com
It was a scorching day in March 2008. Job seeker Glorence Kandeke, 24, waited anxiously outside a Chinese copper mining company in Chambishi, northern Zambia, in a slim hope of obtaining employment at the NFC African Mining PLC (NFCA).
“I have been travelling about 45km everyday over the past three months for a possible job with the NFCA,” said Kandeke. He said his parents had funded his $5 daily fare to come here. The cost amounts to 15% of the minimum monthly wage for Zambians which stands at 268,800 Kwacha, or $77.
“I don’t know when I will get a job from the NFCA, nor how long my family can support me by paying my fare everyday,” sighed Kandeke.
Kandeke is joined by nearly 75 others everyday who vie for a position in the Chinese company.
“The Chinese said they offer 5 new jobs every day, but nothing lucky has happened to me in the past few months,” Kandeke said.
There are thousands of workers like Kandeke who seek employment in the special economic zone in the Copperbelt. But for those who obtain jobs within Chinese companies, there is an increasing concern that their safety is being compromised and they are being financially exploited.
Chinese investment in Zambia is dwarfed by those of US and European countries, and even some Asian countries. However, China is hailed as an increasingly important investor in this southern African country; a nation which has an unemployment rate as high as 70%.
“Chinese investment in the Zambian mining sector is showing very positive trends,” said Mr. Lennard Nkhata, permanent secretary of the Ministry of Mines and Minerals Development.
Instead of responding directly to criticism by the West over China’s negligence of labor laws, poor environmental record and lack of contribution to the communities of Africa, Mr. Nkhata spoke more positively of China’s role in his country.
“Chinese compliance to health and safety regulations has improved tremendously over the years and the environmental performance of the companies is acceptable so far,” he said. However, he mentioned no specific figures.
The Chambishi NFCA mine, which is running on Chinese technology, is the only large-scale underground mine which has not recorded a fatal accident since October 2006. Mr. Nkahat cited this as an example to show the safety record in Chinese facilities.
Zambia has placed the battle against poverty at the top of its agenda and expects to achieve an economic boom through the mining industry. A new tax regime, it believes, will help achieve this. This measure is due to take effect from April 1, with the Loyalty Tax rising to 3% and the company tax up to 30%.
“Thanks to the huge demand for copper in both China and India, Zambia is enjoying a booming mineral industry,” Mr. Nkahat said.
In 2007, Sino-Zambian bilateral trade stood at $595 million, up nearly 60% from 2006. The figure included $397 million of exports to China from Zambia, most of which were copper.
The permanent secretary said that the increased output resulting from Chinese investment had the potential to bring about an economic boom in Zambia.
It has been widely acknowledged that Chinese investment in Zambia is highly protected by the government.
Zambia’s Environmental Council Senior Communication officer Justin Mukosa said: “We do not want to separate Chinese investment from other investment, and we judge overseas investors by performance.”
And he criticized those who talked down China, saying: “singling out Chinese companies is a political issue more than an environmental one. ”
The Citizens for a Better Environment (CBE), Zambia’s largest environmental NGO based in Kitwe, confirmed that there are no more citizen complaints about Chinese mining companies than other investors.
In fact, there have been serious environmental incidents caused by other countries’ mining firms. Earlier this year, the Mopani Copper Mine, partly owned by a Swiss company, was blamed for polluting water supplies in Mufulira town.
The Zambian Development Agency will soon issue a list of industries into which overseas investment is sought, in a bid to boost national development, the agency’s Investment Promotion Manager Jessica Mwiinga Chombo said. Mining and hydro-electric industries are included on the list, but Ms Chombo failed to elaborate further.
“No discrimination exists between local and foreign investors,” she said, but added that “Zambia expects investors to create jobs and transfer technology and skills for the locals.”
The $220 million Chambishi Copper Smelter （CCS）Ltd, which is under construction in Kitwe, stands as a good example to show how China is fulfilling its commitment in assisting local development.
The smelter is scheduled to go into operation by the end of this year, with an output of 150,000 tonnes of crude copper per year.
Copper ore, as it is extracted from the ground, has a very small copper content. After the first industrial processes, concentration copper is produced with a copper content of around 40%. Smelters turn this into crude copper which is 99% pure.
Building smelters not only reduces outsourcing but also helps increase Zambia’s exports of added-value products, so says Deng Yun, vice director of the smelter’s Administration Department. New smelters will also help create new job opportunities.
“All the crude copper from the new Chambishi smelter will be shipped to China,” Deng Yun said. The smelter is expected to boost Zambia’s exports by $450 million.
“The company will also provide over 1,500 jobs for local people,” said Yun, “There are now about 400 working Chinese and 600 Zambians to build the smelter, and after it goes operational, the number of Chinese workers will decrease to 100,” he explained.
However, Chinese investors are expected to contribute more to Zambia’s society and meet ever higher expectations of Zambians.
John Lungu, economics professor at the Copperbelt University in Kitwe, has called for increased local partnership of Chinese businesses in Zambia to ensure a fairer deal. He also argued that the Sino-Zambian Economic Zone, where both the NFCA and CCS are located, should create not only jobs, but also well-paid jobs.
Professor Lungu’s view is echoed by that of union leaders and miners who often complain about unethical treatment and low wages in Chinese mining companies.
Chilufya Mukuka, head of the Safety Department of the India-funded Chambishi Metals Plc, said that miners working for Chinese companies receive about $70 per month. This is much less than an average of $400 paid by companies from other countries, said Mr Mukuka, who also represents a mine community in Chambishi.
However, Jingtao Liang, an engineer with the NFCA, dismissed the allegation, saying that pay for Zambians averages at $400, with the highest exceeding $3,000.
Though miners’ union leaders fail to give satisfactory explanation of this conflicting information, it is generally agreed that pay varies amongst different categories of jobs.
Standing outside the NFCA, job seeker Kandeke said: “Though the Chinese company pays less, it is better than nothing.”
Kandeke and his countrymen prefer to be employed by the NFCA rather than other foreign companies. They say they would rather work the 8 hours demanded of them by the NFCA than the 12 hours which is commonplace in other foreign companies.
Commenting on the low wages paid out by Chinese companies, Professor Lunga concludes that Chinese investors have transformed from “comrades” to “capitalists” in less than half a century.
His opinion forms a striking contrast to the position of his government which calls China a “genuine and all-weather friend” who is ready to help without preconditions.
Zambia established a diplomatic relationship with China within a week after its independence in 1964, becoming the first country in southern Africa to do so.
The Sino-Zambian friendship culminated in the building of the Tazara Railway which links landlocked Zambia with neighboring Tanzania in the 1970s. It had been the largest foreign-aid project ever undertaken by China. Since then, China has gradually increased its investment within the country. By 2007, China’s direct investment in Zambia had reached nearly $290 million.
However, China represents only a small portion of overseas investment, which Zambia relies on to transform its economy.
Zambia faces the challenge of balancing the interests of foreign investors with the welfare of its people. And solving the problems relating to Chinese companies are only the beginning, as Zambia tests its ability to achieve a balance.
Whilst trying to build up its economy, Zambia needs to introduce effective measures to help protect the well-being of its people and the environment.
Read other China-Africa articles:
Africa pivoted to setting its own agenda
China in Africa: a catalyst for change
Copyright World News Review 2008
For reproduction of the articles, please email: wdy21century@gmail.com
1 comment:
Copper has been Zambia's major foreign exchange earner for years. Like all commodities, the price is subject to supply and demand and inevitably Zambia's economic wellbeing is dependant on countries like China and India maintaining their voracious appetite for metals uch as copper.
Given the current economic turbulence which is impacting greatly on the SME sector in China (on which China has depended for its stellar growth in GDP, it will be interesting to see if the Chambeshi smelter will continue to sustain its predicted output targets.
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