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“You'll Be Fired if You Refuse” - Human Rights Watch

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for CNMC in 2003—13 years after the Chambishi mine was last in active production. 37 In<br />

2006, CNMC opened Sino Metal Leach Zambia (known as Sino Metals) near the NFCA<br />

underground mine to provide lower-level processing into exportable copper cathode<br />

through its tailings leach plant and Solvent Extraction/Electrowinning (SX/EW) plant. 38<br />

The following year, Zambia became the first African site for China’s special economic<br />

zones, or SEZs, announced originally at the 2006 Forum on China–Africa Cooperation. 39<br />

Known in Zambia as the Zambia-China Economic and Trade Cooperation Zone (ZCCZ), SEZs<br />

are designed to provide “a combination of world-class infrastructure, expedited customs<br />

and administrative procedures, and (usually) fiscal incentives that overcome barriers to<br />

investment in the wider economy.” 40 The zone was placed in Chambishi, with the goal to<br />

spur additional investment in the copper industry and related production.<br />

CNMC began construction on the Chambishi Copper Smelter (CCS) soon thereafter, and the<br />

plant opened in early 2009. In January of that year, the investor at Luanshya Copper Mine<br />

closed its operations and announced the mine was for sale; CNMC purchased it several<br />

months later. The mine reopened in December 2009 after hundreds of millions of dollars in<br />

investment; more than 2,000 miners are employed at China Luanshya Mine (CLM). 41<br />

The four copper mining companies owned by the parastatal CNMC are:<br />

• NFCA, an underground mine and surface-level plant in the town of Chambishi; 42<br />

• CLM, an underground mine, processing facility, and open-cast mines in Luanshya;<br />

• CCS, a copper smelting plant in Chambishi; and<br />

• Sino Metals, a copper processing plant in Chambishi.<br />

37 Xinhua, “CNMC kicks off production at copper mine in Zambia,” November 28, 2010. NFCA spent around $132 million to<br />

restore the mine and the concentrator, with more than 2,000 jobs created by the start of production. Frasier and Lungu, For<br />

Whom the Windfalls, p. 48.<br />

38 For a summary of copper production from mine to export, see Copper.org, Copper Production from Ore to Finished Product,<br />

http://www.copper.org/education/production.html (accessed September 28, 2011); International Copper Study Group,<br />

Definitions, http://www.icsg.org/index.php?option=com_content&task =view&id=23&Itemid=64 (accessed September 28, 2011).<br />

39 Haglund, “In It for the Long Term?,” p. 634.<br />

40 Deborah Brautigam, Thomas Farole, and Tang Xiaoyang, “China’s Investment in African Special Economic Zones:<br />

Prospects, Challenges, and Opportunities,” Economic Premise (the World Bank), March 2010, p. 2.<br />

41 Kelvin Kachingwe, “Controversial Chinese Firm Given Another Copper Mine,” Inter Press Service, June 2, 2009,<br />

http://www.ipsnews.net/africa/nota.asp?idnews=47065; “Chinese to pump $150m into Luanshya Copper Mine rehab,”<br />

Times of Zambia, December 10, 2009.<br />

42 As of early 2011, underground mining at NFCA has been taken over in name by JCHX, which is also owned by China Non-<br />

Ferrous Metals Mining Corporation. The management from NFCA Underground Mining remained intact when transferred to<br />

JCHX, as did the general workforce. The only change, on its face, is the CNMC subsidiary’s name. Miners protested the<br />

change, as it happened without any notice. “12 protesting miners arrested,” Lusaka Times, January 19, 2011. Throughout this<br />

report, <strong>Human</strong> <strong>Rights</strong> <strong>Watch</strong> will refer to the company as NFCA, rather than JCHX, since that is what the miners themselves,<br />

union officials, government officials, and business representatives all still call the company.<br />

21 HUMAN RIGHTS WATCH | NOVEMBER 2011

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