Anglo faces Zambia pressure

Anderson Mazoka wants Anglo American to reconsider its decision

Anglo American is facing calls to reconsider its decision to pull out of Zambia's copper industry.

The decision not to push ahead with the Konkola mining projects puts some 11,000 jobs at risk and is a serious blow to Zambia, which relies heavily on copper for its foreign currency earnings.

A business can find ways of addressing a problem like Konkola without having to pull out

Anderson Mazoka, opposition presidential candidate

"I hope that Anglo can continue to be persuaded to play a role in ensuring the Konkola deep project goes ahead," said Anderson Mazoka, the candidate contesting the result which saw Levy Mwanawasa elected president.

"A business can find ways of addressing a problem like Konkola without having to pull out," he told the BBC's World Business Report.

Local media have attributed Anglo's decision to pull out to the political fallout from December's election - an interpretation Anglo and Mazoka have sought to play down.

"I would like to assure would-be investors that we intend to sort out our political differences and bring Zambia into line with other acceptable countries for investment," Mazoka - a former chief executive of Anglo in Zambia - added.

'Serious problem'

Another company, Orion, has also announced plans to step back, shutting its cobalt plant in Kabwe, citing world cobalt prices as the reason.

Although another blow, it is a minor one compared with the impact of Anglo American pulling out of Konkola Deep.

"It is the number one project....There is no other project that is comparable. If we let Konkola die, then we have a very serious problem for the economic situation of this country," Mazoka said.

Part of the problem for Anglo American was that low product prices left it unable to raise extra finance it needed for Konkola, having discovered the original money invested wasn't enough, analysts have said.

Anglo American said the low price of copper on world markets left it with no choice but to quit Zambia.

The Zambian government has sought to reassure workers their jobs are safe.