(Adds company comment.)
By Nicholas Bariyo
Special to DOW JONES NEWSWIRES
The management of Kansanshi Copper Mines, Zambia's largest
single copper mine by output, has offered its workers a 10% pay
rise in a new labor deal for the year ending Dec. 31, 2010, a union
official told Dow Jones Newswires Tuesday.
Sikufela Mundia, president of the National Union of Miners and
Allied Workers, said by telephone from the Copper Belt province
that union representatives and management have already signed the
labor contract following the conclusion of labor talks last week.
Kansanshi is owned by Toronto-listed First Quantum Minerals Ltd.
(FM.T).
"We agreed new terms in the 2010 collective agreement last
week," he said adding that the union would continue working closely
with management to foster industrial harmony.
The mining company will also offer a 25% production bonus of
gross pay over and above the miners' regular salary, a safety bonus
of 10% and an attendance bonus of 10%, he added.
Godfrey Msiska, Kansanshi's spokesman said that the management
had also increased the workers' leave travel allowance to 1 million
Zambian Kwacha ($210) from ZMK200,000 for the year ending Dec.31,
2010.
In a statement emailed to Dow Jones Newswires, Msiska said that
the company has been paying production bonuses to its workers since
2007.
"Kansanshi mine employees have the potential to earn an extra
45% of their regular pay, once they have met their bonus
conditions. This compensation package places Kansanshi Mine among
the top payers in the Zambian mining industry," he said.
According to Msiska, management and the Miners' Union of Zambia
and National Union Of Miners and Allied Workers have pledged to
continue consulting each other on matters of mutual interest, in
order to enhance the industrial harmony at the mine.
Zambian miners have been pressing for pay hikes since late last
year, citing improved global copper prices.
In December last year, the miners' unions said they would not
accept any pay hike below the country's inflation rate, which stood
at 9.6% in January according to Zambia's consumer price index.
Kansanshi Copper Mines becomes the fifth mining company in
Zambia to offer a pay rise to its miners since the start of the
year.
London-listed Vedanta Resources PLC (VED.LN), owners of Konkola
Copper Mines, Swiss commodity trader Glencore International AG,
which owns Mopani Copper Mines, and Chinese-owned NFC Africa, a
unit of China Nonferrous Metals Co. (8306.HK) as well as Equinox
Minerals Ltd. (EQN.T) have all offered their miners pay increments
this year.
Last year, Kansanshi produced 245,000 metric tons of copper
cathodes; the mine also produces around 70,000 troy ounces of gold
every year.
-By Nicholas Bariyo, contributing to Dow Jones Newswires;
256-75-2624615; bariyonic@yahoo.co.uk