Munali Nickel Mine Halts Operations Amid Funding Crisis and Mounting Debt
Zambia’s Munali Nickel Mine Faces Shutdown as Funding Delays Leave 900 Workers Unpaid and Contractors Withdraw
Munali Nickel Mine, operated by Mabiza Resources Limited, has announced severe operational challenges that have forced the suspension of several mining activities, leaving the future of the mine in uncertainty.
Nearly 900 employees have gone more than two months without salaries, after shareholders CE Mining (UK) and CTG Jintong (China) failed to provide the promised funding by the July 31, 2025 deadline, mine officials confirmed.
The situation worsened when key contractor Epiroc withdrew its equipment over unpaid debts, effectively crippling underground production and sharply reducing operational flexibility.
The mine has since requested emergency funding, but major contractors—including ZESCO and other suppliers—have already been affected, forcing the processing plant to shut down twice.
Southern Province Minister Credo Nanjuwa expressed concern over the mine’s financial instability, questioning why a newer nickel operation in North-Western Province is thriving under similar market conditions, while Mabiza Resources struggles under a $7 million debt burden.
The crisis has raised fears of further job losses, supply chain disruptions, and lost revenue in Zambia’s mining sector unless urgent financial intervention is secured.
