Mopani Copper Mine has announced plans to settle all outstanding payments owed to local contractors and suppliers by the end of April 2025. This commitment comes amid growing concerns from vendors who have faced delays due to operational challenges at the mine.
Mopani Chief Executive Officer Charles Sakanya attributed the delayed payments to disruptions in copper production over the past three months. He explained that operational difficulties at the company’s smelter, coupled with restricted power supply, had negatively impacted production and cash flow. Speaking during a visit by Mines and Minerals Development Minister Paul Kabuswe and Copperbelt Minister Elisha Matambo to the Mufulira plant, Mr. Sakanya reassured stakeholders that Mopani is prioritizing the clearance of outstanding debts to local businesses.
However, he cautioned that some vendors were pricing themselves out of the market, making it difficult for the mine to maintain sustainable partnerships. He noted that competition among the more than 4,000 vendors supplying goods and services to Mopani had become intense, urging businesses to remain competitive and fair in their pricing.
In addressing concerns about ethical business practices, Mr. Sakanya revealed that over 150 employees had been dismissed for engaging in dubious dealings with contractors and suppliers who provided substandard services. He emphasized that ensuring integrity in procurement remained a key priority for the mine as it seeks to enhance efficiency and value for money in its operations.
Despite these challenges, Mopani remains committed to long-term sustainability. Mr. Sakanya disclosed that the company is working towards extending its operational lifespan from the current 30 years to 50 years through continued exploration, expansion, and collaboration with local businesses. Additionally, he highlighted that Mopani has created over 1,900 permanent jobs, underscoring its role as a major employer in the region.
Meanwhile, Mines Minister Paul Kabuswe urged Mopani to improve its overall performance, stating that since its takeover by International Resources Holdings (IRH), the mine’s operational output was only at 50 percent. He stressed the need for enhanced efficiency and increased production to ensure the mine’s sustainability and economic contribution.
Minister Kabuswe also called on Mopani management to resolve ongoing disputes with local contractors and suppliers. He warned that excessive price negotiations were negatively impacting local businesses, urging the company to find a balance that supports both operational efficiency and the growth of local enterprises.
With Mopani’s commitment to settling debts and strengthening operations, stakeholders will be closely monitoring the mine’s progress in ensuring financial stability and fostering mutually beneficial partnerships with local businesses.
By Lovemore Sondashi
