Demands for Revamping Chambishi Metals Plant on the Rise
Stakeholders in the mining industry on the Copperbelt have continued to demand action from the owners of Chambishi Metals, Eurasian Resources Group (ERG), to either revive the plant or hand it over to the Zambian government to seek alternative investors.
Augustine Mubanga, the former Mining Suppliers President, has urged for the owners of Chambishi Metals to be penalized if they fail to take action.
Mubanga stated that the plant should be put into productive use and not remain on care and maintenance. He added that ERG should find ways to reopen the facility, or the government should seek ways to bring it back into production.
Mubanga emphasized the importance of Chambishi Metals in the mining sector, especially with the increasing demand for electric vehicles. The plant is the only one in Zambia that exclusively processes cobalt and copper. Therefore, its reopening will offer various benefits to the country, including increased revenue and employment opportunities.
Stakeholders in the mining industry and residents of Chambishi have for the past three years continuously advocated for the reopening of Chambishi Metals. The plant’s closure has negatively affected the construction sector since it used to produce gypsum, a key ingredient in cement manufacturing. The unavailability of gypsum has affected the cost of locally produced cement, thus increasing the cost of brick and mortar construction.
Mubanga asserted that the continued closure of Chambishi Metals is tantamount to sabotaging the country’s economy. ERG is denying people employment opportunities, businesses, and the country revenue that could have been derived from the asset. They are also denying the host towns the benefits of corporate social responsibility projects.
In January 2020, ERG placed Chambishi Metals on care and maintenance, sending over 200 workers home due to a lack of feedstock to sustain its operations. Although the tax regulations on imported feedstock were lifted, the plant remains closed.
Chambishi Metals is the largest producer of cobalt and gypsum in Zambia. The government is yet to comment on the matter.
