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Matero Reforms of 1969: Difference between revisions
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In 1969, the Matero reforms were announced,which gave the government 51% ownership of the mines, managed under [[Mining Development Corporation]] | In 1969, the Matero reforms were announced,which gave the government 51% ownership of the mines, managed under [[Mining Development Corporation]] | ||
([[MINDECO]]). Thus began the era of mining nationalization, which was completely effected by 1973.<ref>[http://www.scielo.org.za/pdf/jsaimm/v116n6/03.pdf Copper mining in Zambia - history and future by J. Sikamo, A. Mwanza, and C. Mweemba]</ref> | ([[MINDECO]]). Thus began the era of mining nationalization, which was completely effected by 1973. | ||
Nationalization of the Zambian mines began with the Matero | |||
declaration of 1969, when the government obtained a 51% | |||
shareholding in the then two existing mining companies. | |||
These were Roan Selection Trust and Anglo American | |||
Corporation, which owned all the operating mines in the | |||
country between them. Prior to the Matero declarations, the | |||
government had issued the Mulungushi declarations, under | |||
which 51% of the shares in all the major industries (except | |||
mines) were put in state hands. This led to the formation of | |||
INDECO as the holding company for these shares. The Matero reforms resulted in the formation of a holding company for | |||
the mines’ shares to be called MINDECO. An umbrella | |||
company for MINDECO and INDECO was formed and was | |||
called Zambia Industrial and Mining Corporation (ZIMCO). | |||
Roan Selection Trust became Roan Consolidated Copper | |||
Mines (RCM), comprising Mufurila, Luanshya, Chibuluma, | |||
Chambishi, Kalengwa, and Ndola Copper Refinery. The | |||
Zambian arm of Anglo American Corporation became | |||
Nchanga Consolidated Copper Mines (NCCM) and was in | |||
charge of Rhokana, Nchanga, and Konkola mines. | |||
The Matero reforms were implemented in January 1970 | |||
and the government was to pay for those shares over a | |||
period of roughly 10 years (SARPN, 2015). However, in | |||
1973, the government decided to redeem all the outstanding | |||
bonds and made the following changes in the management | |||
structure. MINDECO was no longer in charge of RCM and | |||
NCCM, but other small mines in the country. INDECO, | |||
MINDECO, RCM, and NCCM all fell under the management of | |||
an overarching parastatal Zambia Industrial and Mining | |||
Corporation (ZIMCO). All the managing directors of RCM and | |||
NCCM as well as the chairman of ZIMCO were political | |||
appointees. The Minister of Mines was the chairman of RCM, | |||
NCCM, and ZIMCO. In the same year, the country changed its | |||
constitution and became a one-party state.<ref>[http://www.scielo.org.za/pdf/jsaimm/v116n6/03.pdf Copper mining in Zambia - history and future by J. Sikamo, A. Mwanza, and C. Mweemba]</ref> | |||
==See also== | ==See also== | ||
