MINING companies did not declare dividends to ZCCM -Investment Holding (IH) last year due to low copper price on the international market that paralysed the sector, chief executive officer Pius Kasolo has disclosed.
Dr Kasolo said in an interview recently that falling commodity prices on the global market the past months made it impossible for mining companies to declare dividends to ZCCM-IH, which holds shares in the mining companies on behalf of Government.
He is, however, upbeat that with the price of copper slowly rebounding on the international market, mining companies will start posting profits. “ZCCM-IH has not received dividends from mining companies because they declared losses due to turbulences on the global market .With China, which is the off-taker of copper, beginning to start buying copper, we expect prices to rebound and this will positively impact on the mining sector,” he said.
On the outlook of the mining industry, Dr Kasolo said the current global shocks are temporary and commodity prices will soon rebound.
He said expansion projects by mining companies will also generate jobs. “It is sad that people are losing jobs due to economic shocks but prices will rebound and jobs will be restored. The sinking of three shafts by Mopani Copper Mines will also create jobs,” he said.
Source: Daily Mail