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ZCCM-IH Minority Shareholders Say Vedanta’s Licence Scrapping Was Done in Haste

Minority shareholders in Zambia Consolidated Copper Mines-Investment Holding (ZCCM-IH) say while they support the government’s decision to liquidate Konkola Copper Mines, the move to cancel Vedanta Resources’ mining licence was done in haste as the latter currently has no capacity to run the mines.

In a statement to the media, Thierry Charles, on behalf of Euronext Minority Shareholders of ZCCM-IH, stated that while the difficult situation at KCM had been ongoing for years, the decision to revoke Vedanta’s licence seems to have been taken in haste without preparation and anticipation.

“…as shareholders of ZCCM-IH, we are also concerned about the KCM liquidation…Due to our meagre resources, our company does not have the financial means to maintain KCM mines in operation or maintenance over the long term as evidenced by the liquidation of former lime jewel Ndola Lime Co. We have helplessly witnessed its unfortunate management and inadequate industrial investments. In the end, more than $100 million went up in smoke. Therefore, this additional charge related to KCM will compromise the viability of our holding company ZCCM-IH,” Charles stated. ”

“Furthermore, it is imperative that the future owner of the largest copper mine makes full commitments in a serious industrial project and a fair redistribution so that the Zambian people can finally benefit from the wealth of its mining subsoil and thus initiate the development of the country.”

He stated that ZCCM-IH’s minority shareholders would constantly monitor the situation at KCM.

“Whatever the future shareholding structure that will subsequently be adopted for KCM’s assets, the minority shareholders of ZCCM-IH will continue to look with their thoughtful and watchful eyes at the situation, the people of Zambia having been robbed for far too long,” Charles stated.

He, however, stated that the minority shareholders of the ZCCM-IH supported the decision of the Zambian government, the company’s shareholder, to proceed with the liquidation of KCM.

“For many years, we have wanted strong measures to be taken against mining companies that do not play the fair game with the people of Zambia and ZCCM-IH. For too long, these companies have abused the caring of different Zambian governments, anxious not to hurt international investors and to preserve employment in the Copperbelt. After the appointment of our new chairman Eric Silwamba, we urged him to bang his fist on the table and to get the profiteers on right track in a letter ate 12 September, 2018,” Charles stated.

He doubted Vedanta’s claims of having kept the mine going without making profits.

“As it is to Glencore and its Mopani subsidiary, how can we really believe that Vedanta have kept the mine all this time if it didn’t generate profits? ZCCM-IH got only miserly crumbs during Vedanta’s operation of the KCM mines. The $3 billion investment announced is Vedanta’s sole commitment, the port state of KCM’s facilities appear to contradict this allegation. For several days, Vedanta has been trying to justify the inevitable dramatic situation of KCM but insist on keeping and running the mine. Odd situation… Have we ever seen a leech want to continue sucking at all costs a dead man…? In line with their logic, after such a financial and environmental disaster, they should rather leave Zambia by the back door and by lowering their head,” Charles stated.

“Speaking to the Jain International TRade Organisation in Bangalore, India, 2014, March 22-23, the Vedanta Chairman Anil Agarwal stated about KC: ‘It’s been 9 years [since we’ve owned the company], and since then every year, it is giving us a minimum of 500 million dollars, plus one billion dollars, every year it has been continuously giving back.’ Anil Argawal also explained in detail how he came to buy ‘the largest copper mine in Africa’ at Konkola, describing how he took a chance by offering $25 million rather than the $400 million asking price. Not only does Vedanta despoil Zambia and pollute the land of surrounding villagers, not only does Anil Argawal not keep his promises, but he also has the impudence to mock the Zambia people and their leaders! While he is a spoilsman, humiliating them in this way is disgusting…”

He further questioned First Quantum Minerals’ claims of having $3.5 billion of retained earnings in its accounts.

Charles stated that keeping such a huge amount of money was abnormal.

“First Quantum MInerals is another clear case in point. How can we really believe FQM is letting $3.5 billion sleep in the Kansanshi Mine’s coffers? To keep that huge amount of retained earnings is abnormal. Would they be distributed, the ZCCM-IH’s share would be as much as 700 million while Zambia is in dire need of money and development. Would the purpose of FQM be to stifle the people of Zambia? It may be Mr Pascall and his staff’s strange way of rewarding the Zambians for allowing FQM to build a world mining empire through the Kansanshi Mine,” stated Charles.

“Recently, rumors have circulated that FQM has proposed to buy back our 20 per cent Kansanshi shares for $700 million. In other words, FQM would offer to buy it back with our own money!”

10 Comments

  1. Truestory

    Everything is disgusting, very painful to heare how we are being robbed in daylight robbery and people have just been watching. Only to react now. Zambia, what’s the problem with our leaders? Why are they allowing foreigners to steal from us? Who will save our natural resources from these idiots. And we heare some of our fellow Zambians have been working with these crooks in robbing us, shame on you. God will punish you one day.

    • emmanuel banda

      when you are ready to sell your inheritance for a cup of soup.why blame Anil Agarwal?You know that the devil comes to steal,destroy,and kill.so he has done exactly that.wake up you zambians who have no respect for what the Lord has served on your plate.say not the evil and crush him under your feet.where is the g-tec report .How can you allow Anil agarwal to allow raping Kcm and zambians again and again.Cruch the head of the snake ,so that he never gets up again to bite.

  2. Tuli Bantu

    Mwala umene unakanidwa ndi amisili omanga nyumba ndiye unafunika kuimikiza ngondya, the stone that was rejected by the builder’s, was the only stone that was also needed on the corner, this government is full of crooks, today they will tell you this tomorrow that, HH, we are behind you, you are the only Economist that can save this country, people have perished in this government, benangu bakamba it’s you who privatised the country companies but they don’t have an evidence to prove you wrong and you even offer your big house but they fail, we are tired of dununa reverse, Mwanawasa left things on the silver plate but we don’t have one, he was an Economist like you,

    • ROKA

      Mwanawasa contributed a lot to this mess we are witnessing in the mines!By the way, he was not economist.

  3. Tuli Bantu

    Mwala umene unakanidwa ndi amisili omanga nyumba ndiye unafunika kuimikiza ngondya, the stone that was rejected by the builder’s, was the only stone that was also needed on the corner, this government is full of crooks, today they will tell you this tomorrow that, HH, we are behind you, you are the only Economist that can save this country, people have perished in this government, benangu bakamba it’s you who privatised the country companies but they don’t have an evidence to prove you wrong and you even offer your big house but they fail, we are tired of dununa reverse, Mwanawasa left things on the silver plate but we don’t have one, he was an Economist like you, we are tired of lawyers because a lawyer can defend even the wrong and change the lie to truth, only God knows

  4. SEE MIND

    Zambian they can runing mine without a white people cause Zambian too much thieves . Please if former campan are out. Try another private campan not Zambian okay !!!

  5. SEE MIND

    Zambian they can’nt runing mine without a white people cause Zambian too much thieves . Please if former campany are out. Try another foreign private campany not Zambian okay !!!

  6. DEEP THROAT

    Thank you, Mr Charles. Well spoken.
    As a matter of fact, Zambia needn’t have the capacity to run the mine.
    We need to have the will power to run the mine. National pride above political affiliation would make us succeed.
    Correct this matter had gone on rather too long. As a result, Vendetta has amassed vast worth now to fight the government. They will not do it themselves. Oh no. They are cleverer than that. They will use money to set Zambians against Zambians.
    That is how the mammon spirit works. Love of money, it is called in ordinary language.

    • ROKA

      Deep throat, you are right, they are using themoney sucklred from these mines to set Zambians against each other by using the dubiously rich Zambians to speak opposite the stance government has taken!

  7. Kanyembo

    It’s about time we show some muscle or continue being robbed and suffer perpetually.

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