Glencore subsidiary MCM to shut Zambia copper mines
Mining and commodities trader Glencore has declared force
majeure at its Mopani Copper Mines (MCM) subsidiary in Zambia.
The company plans to suspend operations in the country for
three months citing the effects of the Covid-19 pandemic, said Zambia mines minister
Richard Musukwa.
Musukwa said he would not let the company proceed with the
plan as it had not complied with the law, reported ZNBC News.
Musukwa noted that the Zambian Government has also rejected
an attempt by MCM to give it less than 24 hours’ notice to lay off more than
11,000 workers.
He added: “The Ministry is not aware of any event that has
happened that is beyond the reasonable control of MCM and which makes mining
impossible.”
Last month, MCM said it is reviewing its business in a bid to
reduce capital spending due to lowered copper prices and unprecedented impact
caused by the coronavirus pandemic.
Reuters quoted MCM as saying: “In addition to the impacts of
a rapid decline in the copper price, Mopani’s situation has been further impacted
by the critical disruptions to international mobility, transportation and
supply chains arising from Covid-19.”
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