Glencore's Plans to Close Zambian Copper, Cobalt Mines Rejected by Zambian Government
07 Abril 2020 - 11:44AM
Dow Jones News
By Nicholas Bariyo
Glencore PLC plans to suspend copper and cobalt output in Zambia
for three months after it declared a force majeure related to at
least two mines amid the worsening economic carnage caused by the
coronavirus pandemic, said Richard Musukwa, minister of mines and
mineral development, on Tuesday. The Zambian government has
rejected the plans, he said.
According to Mr. Musukwa, the government has rejected the
company's plans to close the mines because the reasons being cited
are not adequate and "do not conform with the Law." Glencore's
decision comes days after it announced that it was reviewing its
Zambian operations amid spiraling costs and uncertainty caused by
the coronavirus pandemic.
Mr. Musukwa said the government won't let the commodities giant
hastily close operations and cut over 1,100 jobs. Glencore produces
around 120,000 tons of copper every year at its Zambian units. A
company spokesman couldn't provide any immediate comments.
"The Ministry is not aware of any event that has
happened...which makes mining impossible," Mr.Musukwa said. "The
measures taken by government to mitigate the effects of COVID 19
have hitherto not been a lock down but steps to allow commerce to
continue in the country, especially the mining sector," he
said.
Last year, Glencore closed its giant Mutanda mine in the
neighboring Democratic Republic of Congo amid sliding metal prices.
Copper and cobalt prices have taken a hit since late last year,
amid concerns over the global economy, and the trade war between
the U.S. and China also hit commodity prices. The outbreak of the
coronavirus has compounded mining companies' woes.
Write to Nicholas Bariyo at nicholas.bariyo@wsj.com
(END) Dow Jones Newswires
April 07, 2020 10:29 ET (14:29 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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