Mines and Minerals Development Minister Richard Musukwa said the government would allow the due process of the law to take its course in the matter, according to a statement issued by first secretary press and tourism at the Zambian Mission in India, Bangwe Naviley.
He, however, said the government is willing to listen to any progressive talks that structure a user friendly exit mode for Vedanta Resources, an Indian mining giant that held the majority stake in KCM.
Musukwa was speaking on the sidelines of the State Visit to India by President Edgar Lungu.
He said it is now in public domain that Vedanta had extensively lost the social licence to operate in communities such as Chililabombwe and Chingola, adding that the marriage that existed between the investor and the government has “irretrievably broken down”.
Musukwa said the decision to liquidate KCM was premised on securing the company from total collapse and protecting the jobs of the people because Vedanta had in principle walked away owing to the negligence as evidenced by its inability to exploit and develop its primary sources of its ore materials and failure to pay obligations as they fell due.
He said the government is determined, once the court processes are concluded, to urgently secure a credible investor in an open and transparent manner.
Musukwa said a new investor should have the capacity to inject fresh capital to operationalise the Konkola Deep Mining Project (KDMP) and both underground and upper orebody resources which are believed to have a huge lifeline which will in turn provide job security.
He said the investors should lead to the transformation of the host communities in terms of infrastructure such as roads, health and education.