China Nonferrous Metal to Increase Investment in Zambia Amidst Labor Woes
Could the plans of China Nonferrous Metal Mining (Group) Co Ltd (CNMC) to increase its investment plans in Zambia assuage the mindset of the locals that the Asian country violates labor rights and laws?
State-run CNMC is mulling to make a $2-billion investment in Zambia from 2011 to 2015, the China Daily reported, quoting CNMC's vice-president, Tao Xinghu, as saying.
The figure, according to Tao, is equivalent to what CNMC has spent over the past 12 years in the African country.
While most companies with expansion plans earmark funds for mainly capital expenditures, Tao purposely announced CNMC's projected investment is not only for increased production and expanded operations. A portion has reportedly been allocated to build a 3,000-unit housing complex for the local workers to improve living conditions at the mines.
CNMC entered Zambia's copper mining sector in 1998 and began operations through subsidiaries in 2003. Previously wrecked copper mines were restored, modernized and expanded.Its nine corporations saved existing jobs and created thousands more. The corporations have paid more than $90 million in taxes to Zambia's coffers.
But not all is well between the two countries, at least on how the local workers at the mines should be treated.
In a 122-page report titled "You'll Be Fired if You Refuse' - Labor Abuses in Zambia's Chinese State-owned Copper Mines" by the Human Rights Watch group, it detailed the persistent abuses in the Chinese-run mines, such poor health and safety conditions, regular 12-hour and even 18-hour shifts involving arduous labor, and anti-union activities. Not only these violated Zambia's national laws, they also ran against international labor standards. The four Chinese-run copper mining companies in Zambia are all subsidiaries of CNMC.
"China's significant investment in Zambia's copper mining industry can benefit both Chinese and Zambians," Daniel Bekele, Africa director at Human Rights Watch, said in a statement. "But the miners in Chinese-run companies have been subject to abusive health, safety, and labor conditions and longtime government indifference."
Regardless of the labor problems, Tao remained optimistic of the relations between China and Zambia, saying CNMC places a great deal of emphasis on the welfare of local workers.
He added the Zambia-China Economic and Trade Cooperation Zone has attracted 14 corporations and $1 billion worth of investments. Some $120 million have so far been put into infrastructure building as well as $10 million in donations and sponsorships into Zambia.