Multinational Mining Industry

ZAMBIA

• Population: 14.5 million (2003)• Just over 750,000 square km of land – Just over half of Quebec• Huge external debt: 1980, Zambia was one of Sub-Saharan

Africa’s most indebted countries owing 3.3 billion, in only 17 years, debt had risen to just under 7 billion. -As of 2012, PPG debt was about 18% of GPD (US$3.7 billion)• Copper & Cobalt mining made up 75% of export earnings in 1997

– Not much change in 2013, Copper alone contributing 70%• Zambia is the 6th largest copper producer in the world as of 2011

Zambia: OVERVIEW

MINERALS• Copper• Cobalt• Precious Metals: Gold, Silver• Gemstones: Amethyst, Aquamarine, Emerald, Tourmaline• Coal• Industrial Minerals: Cement, Gypsum, Limestone, Pyrite, Talc, etc.

Foreign Interest

China & Zambia

October 29, 1964 – Establishment of diplomatic ties

China’s African policy document – Released by Chinese in January of 2006

China’s development considered iconic for Zambian’s, with a economic growth rate of 9% steadily for the last 3 decades*

2013: China’s investment reached US$2.2 billion

JOBS

SCHOOLS

ROADS & BRIDGES

HOSPITALS

“Wages among the lowest wages paid by foreign mining companies operating in Zambia” “Refused to allow their employees to join any trade union”

Some companies were declared to have appalling working conditions as well as long working hours with no rest, no paid holidays, and no retirement benefits, tax evasion

2005 – 51 Zambian workers killed in Chinese-owned explosives factory2010 – Two Chinese mine managers, Xiao Li Shan and Wu Jiu Hua, charged with attempted murder: shooting 11 Zambian workers who were protesting over poor pay and work conditions (Collum coal mine, Sinazongwe)

Win-Win?

Method of Extraction varies depending on nature of the oreMining:Example mine in Zambia: Mopani Copper Mines PLC

Sells copper & cobalt internationally – One of the biggest copper exporters in the world.Based in Kitwe, Zambia – 95% of operationsJoint Venture

Mufulira Copper Mines

Directly employs 5,000 peopleConcentrator, refinery, smelter*Produces 35,000 tonnes of contained copper ore annually

3 Types of Mining Methods:-Original drill & blast method (MCR)-Room & pillar with waste rock backfill-Insitu Leaching of old stopes

420,000 tpa

IssuesQuestionable safety - Mines throughout Zambia have little investment in safety regulations. There are currently no national safety policies and therefore no safety enforcement body:

4 Miners working for Mopani were buried alive in late July THIS YEAR, and were not rescued. Their bodies currently are still in the debris.Another Mopani accident in the last decade involved a man, Webby Chichalwa, exploding dynamite in his face, also a fatal accident.

Pollution level still high

Not a sustainable development – finite amount of minerals with a heavy reliance on money made from exportation

Next StepsLocal company focus*

Mitigation of pollution

Better enforced labour laws - Mine workers Union of Zambia are attempting to better work situations by getting a higher level of safety and health standards from companies, as well as enforcement of rules.

Zambian government required to take a stand for it’s citizens to ensure they are not being abused

More money spent on building infrastructure that will benefit all citizens - MCM is spending approximately US$16-20 million/year on social projects (hospitals, township clinics, first-aid centres, public health departments) in Nkana and Mufulira.*

Investing time and money into researching more sustainable income sources, and continually trying to lessen the pollution output levels

What is the issue?Why is it important, how is it changing?Who is involved or affected?What role does the issue play in development?Solutions, innovative ways forward?