Politics

Scott Reveals KCM-Govt Souring Relation

Scott-ZambeziThe love hate relationship between government and Konkola Copper Mines has continued with Vice President Guy Scot saying the mining firm may close their operations in Zambia due to huge debts they owe.

Speaking in parliament today during the Vice President’s question and answer session Scott said that KCM’s liabilities were in excess of US$1.5 billion.

Scott said KCM was on the brink of exiting the country but said his government will keep a tab on the mining giant.

“The KCM issue is complicated… We are keeping a very careful eye on KCM there are some very strange things that have been happening. It seems a lot of money has been taken out of the country,” he said.

“It seems there are high liabilities in excess of US$1.5 billion as a Zambian company; they have not repaid their loans several times. They owe other mining companies a lot of money. There are two companies called Vedanta.”

KCM and government have often clashed with their Chief Executive recently deported while the plans to fire about 2000 employees drew a lot of controversy.

2 Comments

  1. Brenda Simbuleta

    The ills of Vedanta are visible to the insightful. Yet, the ‘kind” Zambian government could not decipher the truth. They have members on the board, through ZCCM-IH. The following need to be highlighted:
    1) Vedanta ran “a state within a state”, through its LITTLE BOMBAY complex in Chingola
    2) Unprecedented pollution of the Kafue watershed was a weekly occurrence
    3) Two sets of accounting figures were kept. One for the Zambian Government (showing a loss) and another for Chairman Agarwal (showing a profit)
    4) Third party concentrate was taken from other mines for toll smelting in Chingola, and those mines have not been paid as yet, possibly facing cash flow problems also. This could have far reaching ramifications on mining in Zambia
    5) Large local debts have been built up, enforcing 45-60 days payment clauses

  2. Mike Kasongo

    HERE, HERE!!!!
    Well said ma’am
    We in Chililabombwe were always suspicious of this imminent deception.

    Konkola deep is the proverbial white elephant. Still producing well below the economic throughput.

    The construction of a new concentrator in Chingola was a smokescreen. Mufulira, Kalulushi and Baluba mines are all producing copper and cobalt with equipment of the same vintage.

    Anil Agarwal gets VIP treatment when he visits Zambia. His private jet lands at Chingola and immigration personnel from Ndola have to travel there to clear him. Our president is not given such treatment!!!

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