Economy

KCM Says It Hasn’t Received Notice of Govt Takeover

Indian run mining firm Konkola Copper Mines Plc (KCM) has said it has not received any formal communication from government regarding takeover of the mine.

President Edgar Lungu over the weekend announced that government will institute a process to repossess Konkola Copper Mines on account that Indian Vedanta Resources has failed to run the mine.

But Konkola Copper Mines has said it has only learnt of decisions on the future of the mines by government through media reports.

The mining firm has stated that it has sought an urgent meeting with President Edgar Lungu or Minister of Mines Richard Musukwa.

“KCM is seeking to meet with the Government as a matter of urgency to discuss the future of KCM and the impact that the current onerous situation is having on the company, the people of the Copperbelt and the Zambian people as a whole,” Company General Manager, Corporate Affairs Eugene Chungu has stated.

He stated that KCM would continue to engage with the government in a constructive and transparent manner, adding that government, through ZCCM-IH, is a direct and critical shareholder.

“Vedanta is a long-standing investor in KCM and in Zambia, having invested over US$3 billion since the acquisition of this asset. The company employs nearly 13,000 people at its sites and operates clinics, hospitals and schools through its corporate social responsibility programme that amounts to over $210 million since 2004,” Chungu added.

He stated that the company was yet to receive a positive return on the investment despite a rise on taxes, duties,  fuel and power costs.

“KCM has contributed over $1.4 billion to the Zambian Exchequer since acquisition and continues to be the leading Pay as You Earn contributor in the country,” stated Chungu.

 

 

4 Comments

  1. Fast Buumba

    Oh okay

  2. TEMBO

    Zambia!!

  3. TEMBO

    welcome to Zambia!!

  4. acm

    This is a welcome move. Govt must start managing all the mines in Zambia.

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