Zambia union aims to block Vale copper investment
Zambia - Corporate - 07-29-2010

Zambiaquotes largest mine workersquote union said on 28 July 2010 it aimed to block Brazilian firm Valequotes planned development of a USD 400m copper mine because of concerns about its bad labour relations record. Mine Workersquote Union of Zambia President Rayford Mbulu said Vale, which plans to develop the Konkola North copper project, had been involved in a standoff with steel workers in Canada for almost a year and should not be allowed in Zambia. Mbulu said the 20m members International Chemical, Energy, Mining and General Workersquote Union resolved to oppose Valequotes investments worldwide until the company proved that it would respect workersquote rights. quoteWe donquotet want Vale and will campaign against it because of the manner in which it has abused the steel workers union in Canada. Vale is very stubborn,quote Mbulu said.

Vale and the union representing striking workers at its Voiseyquotes Bay nickel mine in eastern Canada last week broke off talks aimed at ending the year-long stoppage, the United Steelworkers said. Vale Executive Director Eduardo Ledsham said earlier in July 2010 the company planned to start producing copper at Konkola North in 2013 in a joint venture with South Africaquotes African Rainbow Minerals. Copper mining is Zambiaquotes economic mainstay, and the mines are a major employer in this southern African country of 12m people. Foreign mining companies in Zambia include Canadaquotes First Quantum Minerals, London-listed Vedanta Resources, Glencore International of Switzerland and Metorex of South Africa.

Source: Reuters