Friday, 23 February 2007

Chambishi Miners scare off Chinese President

The Chinese President recently completed a whirlwind tour of Africa, including a visit to Zambia. While in the country he announced that the area around the Chinese owned Chambishi mine, the many problems of which are discussed in the report, will be one of the new ‘special economic zones’ for China in Africa. This is considered a reward to Zambia for the proximity of its relationship with China.

The BBC report investment worth $800m is likely to pour in.

"This will go a long way in boosting economic development in our country," Mr Mwanawasa told a joint news conference. Nonetheless, despite the controversy surrounding the treatment of previous investors, the Chinese companies will again be able to operate in the zone with special incentives not available to domestic investors. The BBC report that Chinese firms will not have to pay import or value added taxes. This may not be the full extent of exemptions to Zambian law granted the companies. Time and negotiation of future investment agreements will tell.

While the Zambian Government are thrilled to be amongst China’s favourites, the communities and workers in Chambishi clearly have other ideas about what the investment is likely to bring. As this report in the UK newspaper, The Telegraph, describes, President Hu was forced to call off a planned visit to Chambishi for fear of violent protests. The article notes,

“The smooth red carpet rolled out across Africa last week for Hu Jintao, the Chinese president, did not quite reach the gates of Zambia's Chambishi copper mine. His plans to make an official visit yesterday to the plant, which re-opened under Chinese state ownership eight years ago, fell victim to a hitch he rarely encounters at home: the not-so-grateful worker. Tipped off that miners were threatening protests about poor pay and conditions, Mr Hu changed his schedule, leaving the podium - specially built for the occasion - ungraced with his presence.”

The Telegraph article also quotes from ‘For Whom the Windfalls?’ and includes some nice pictures taken around Chambishi.


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