Konkola Copper Mines has assured the nation that it has no intentions of abandoning its operations in Zambia as it has a long term view of its investments in the country.
KCM Chief Executive Officer said the company’s parent company Vendetta Resources Plc has to date invested US$ 2.7 billion in KCM’s operations in Zambia.
Mr. Janakaraj said the mine will continue reinvesting in its operations in Zambia and plans to turn KCM into a world class mining operation.
He was speaking Wednesday evening on a special National Watch television programme on ZNBC TV.
“When we took over the mine in 2004, our strategic target was to secure the life of the mine and we have successfully extended the mine life by another 25 years, we had to invest robustly in new exploration projects within our licence area. We invested in a new smelter, the KDMP, new technologies and talent development,” Mr. Janakaraj said.
“We have a long term view of our investments here in Zambia, we are here to stay. KCM is not the type of business where you arrive today, you make all the profits and leave the next day.”
He revealed that from its US$ 2.7 billion investment, KCM has only paid out US$ 65 million in dividends to its shareholders.
“The bulk of the resources get ploughed back in. KCM is the only company that has paid out small dividends compared to the level of investments, this goes to show that we are not here for a reap off but for a long term partnership with the Zambian government and all the mine stakeholders.”
He added, “The negatively towards KCM by some Zambians are a case of perception rather than reality. This is the reason we believe there should be increased interaction with key stakeholders through mine tours in order to increase the level of knowledge about KCM and its operations.”
On assertions that other mining companies operating in Zambia such as Lumwana and Kansanshi are better managed, Mr. Mr. Janakaraj said that is a wrong comparison.
“No, this is not a fair comparison, its chalk and cheese. You cannot compare a deep mining operation with a simple open pit mine. That is a Wrong comparison. People should understand that if KCM is an easy mine, why did others like Anglo American walk away?”
Mr. Janakaraj also parried assertions that KCM has over employed expatriates from India who have ended up taking over jobs from Zambians.
“That is not entirely true. Out of our entire workforce of close to 20,000, we only have 95 expatriates and that is less than 1 percent of the total workforce. We have managed to reduce the number of expatriates from 200 plus from 2006. Our view is that KCM should be able to attract and nurture the best talent, we see our workers an international workforce and we also have KCM trained Zambian workers working as expatriates at other KCM operations in Australia, India and South Africa,” Mr. Janakaraj said.
The KCM CEO also revealed that the increase in mineral loyalty tax had reduced the mine’s profitability by around US$ 30-40 million last year.
“Imagine having about US$ 40 million taken away from your profits in one financial year, it’s a hard decision but as a business we have to find ways of continuing to grow the business even under such difficult conditions.
The KCM Chief further dispelled assertions that the mining giant could be involved in transfer pricing which is prevalent among major corporations across the world.
“We are a London listed entity with vigorous listing rules and procedures. Secondly, we are professionals. Our whole careers and futures depend on our conduct and we cannot decide to cook up books today. Our books are audited by Deloittee and Touche with KPMG as our internal auditors. KCM has a very transparent metal accounting system and I can assure the Zambians that every Kg of Copper produced is accounted for every day,” Mr. Mr. Janakaraj said.
I would like to know how much is spent on the 95 expatriates, which is 1% of the total workforce? LT Plz bring us that data…..
Hahaha, i like your moniker,thinly veiled Michael Satanism cleverly corrupted.
Now they are talking !!!
Ba Lusaka times that picture is for U&M mining and not for KCM…………………
What is the difference?
I can see 1 black Zambian trying to get in the picture of “white” Zambians.
Anyway, is there any Zambian who can operate that equipment 4004, look like a building? Ati we want jobs, from paddling a canoe, pa bwato, to drive that chi Tipa, but fwebena Zambia?
U seriously need racial counseling!!!
Very I.D.I.O.T.I.C thinking indeed, you comment on issues without research and no understanding at all, these mobile equipments are actually operated by our own indigenous women you should take some time off your useless schedule and perhaps familiarize yourself with some of these operations here in Zambia, though i’m not sure the calibre for you to comprehend, going by your contribution here
We have seen these Euclides being driven by Zambians at the open pit mine in Chingola before we ever heard of KCM
@nostradamus
you are right man!!! No bwato paddling cadre can operate that monister machine
And if this story is about KCM…what happens to those 2000 workers are they stiil being laid off????
Koma ndiwe cipuba. All of *****s who take in this forum, you must be the worst. You just read and not comment on issues that are beyond your comprehension.
*****A
This guy is lying right through his teeth.KCM cant have 95 expatriates,they are double this number.My view still remains the same-indians have never been known to be good at mining.Secondly this guy doesnt have the right facts on his table-anglo american never gave up the mine because they failed but due to political reasons mostly becuae they supported mazoka at the time and its actually mwanawasa who asked them to leave.
The C.E.O mearnt expatriates employed directly by KCM. But for those under contracting companies are far much beyond this number.
I AM ONE OF THE THE KCM HUMAN RESOURCE OFFICERS.
So if KCM decides to go today, will we die?I dont think so…….I dont think its us to berg.They want our resources so its up to them to either go or not.Anglo American un expetedly left and we survived so even your KCM you can go and Zambia will still be Zambia.
The real scandal is how mwanawasa and magande sold this mine for a song -that’s the real scandal
Its Mwanawasa who lifted this country up.You should have been on the copperbelt to see exactly what was happening when Anglo pulled out.A dark cloud was hanging over mother Zambia.Remember HIPC and how we paid off our debts.Mwanawasa said he didn’t want to borrow but investment.
you are re-writing history my friend! it was jubilee 2000 a consortium of ngos that lobbied for debt cancellation and not mwanawasa
“Our books are audited by Deloittee and Touche with KPMG as our internal auditors” even these so called auditors come from india as if there is no KPMG in Zambia……
Indians can not invest $2.7billion in KCM. The all interview was useless full of lies.
They bought the mine at $25,000. after two months they said they have made profit.
Where did they use that $2.7b They have never build any office or any building.This are the same people who destroyed Luanshya Copper Mines.
The government should appoint people to probe KCM. They are alot of things happening in KCM.
each time i see mining equipment entering the country my heart bleeds because copper is a wasting asset and we dont get any thing from what is mined apart from the undervalued tax,government please come up with a way that we buy back even 10% of shares in all mines then we may have a say,ya God help us.
All these so called investors are the same. They always tell us how much they have invested, but they never declare their profits over the same period. the so called investment is just pocket change…..
go to Solwezi Kansanshi making billions of kwacha Kr but ironically look at how bad Chingola- Solwezi road is kuti walila as if no copper comes from there. and then you have useless MPs from the area resigning, shame ba fee color!
ZAMBIAN GOVERNMENT SHOULD LEARN FROM PRUDENT COUNTRIES LIKE BOTSWANA ON HOW GOVERNMENT MAXIMIZES PROFITS FROM MINING INVESTORS TO BEST BENEFIT THE COUNTRY. BOTSWANA GOVERNMENT HAS A HAND AND INFLUENCE IN EVERYTHING THAT FOREIGNERS DO. SURVEILLANCE AND MONITORING OF ACTIVITIES IN EVERY PART OF THE COUNTRY IS VERY HIGH. NO ACTIVITY IS DONE BY ANY ONE OR ANY COMPANY WITHOUT GOVERNMENT KNOWING WHAT IS GOING ON AND WHETHER GOVERNMENT IS BENEFITING FROM THE ACTIVITY OR NOT. ZAMBIA STILL HAS A LONG TO BE A PROPERLY ORGANIZED COUNTRY. WE NEED PRUDENT AND VISIONARY LEADERSHIP. CURRENTLY WE HAVE LEADERSHIP VACUUM!
Quite some picture that is…..are there any black Zambians working for KCM? Please don’t insult me because I’m just looking at the picture as presented.
KCM found 70% of the production plants already producing and only less than 20% are currntlt online and related to new investment,i wish reporters could do some background investigation and come with questions backed up by facts.Have they checked with imigration how many people are with KCM as employers on work permits.have they tlked with the union on issues affecting the miners,have they talked to former employees and gathered fact based issues.have they been to the chingola plant and stood outside the gates i the morning for 1 hour to count the indians going in?
lazy swines asking lazy ass questions.learn to trap a monkey.
The CEO is lying . As a former employ of KCM I can attest to the fact that there are more than 95 exparts working for KCM directly or indirectly. Perhaps 95 are the ones employed directly by KCM but what about the thousands of laborers, technicians and engineers employed by the companies contracted from India by KCM? We Zambians are not fools. In the whole top management of KCM, there are only a handful of Zambians. It is not true that Zambians are “working” as exparts in other Vedanta operations. Zambians abroad in other Vedanta operations are there under an exchange program for a year or so unlike Indians in Zambia who are actually employed on a contract of 5 years or so renewable.
The only investments these mining houses are making is money spent in buying those monster trucks which will become scrap metal soon. In the mean time they are digging and taking our copper at a very alarming rate due to these same machines. By the time we wake up there will only be scrap metal and very huge holes in the ground.
Spot on!!
We black people are stupid, how can only whites manage the company which we have birth rights for? This skin has some issues mwe
@12 TRUTH: YOU ARE RIGHT; OUR ZAMBIAN LEADERS HAVE SERIOUS COMPLACENCE PROBLEMS. VERY SLEEPY AND WOULD NOT DO THINGS FOR THE INTEREST OF ZAMBIA.LOOKING AT THAT PICTURE TODAY, FROM TIMES OF INDEPENDENCE. MAKES ME WONDER TO SEE ONLY 1 BLACK GUY WITH THE SO LOOKING EXECUTIVES?? REST SEEMS TO BE FOREIGNERS? YOU MEAN WE ARE THAT HOPELESS??? STILL DON’T UNDERSTAND WHY WE STILL EXPORT RAW COPPER CANT WE JUST EXPORT FINISHED PRODUCTS?? HOW MUCH WOULD WE MAKE OF IT?? LET’S FACE IT EVERY ELECTRONIC DEVICE HAS COPPER IN IT., BUT WE STILL WORKING LIKE IN 1940S?? SHAME ON US.
This is shocking just appalling this interview on this special National Watch television programme on ZNBC TV….why invite and interview this CEO if you are unable to do a proper research about his company and why even ask him about his expat workers when we know very well that the problem lies with our own corrupt Immigration Dept…. we are always missing the bigger picture and focused on bread crumbs on the floor.
Why not ask him why his company has decided not to sack the 2000 workers? Has gov’t secretly given them concessions? Are we going to still continue to subsidise them?
Mr. Director General at ZNBC remove all the deadwood from that station and start investing new talent.
Wake up ZNBC!!
Are they here to stay with the same contractor u&m or what? coz i can see u&m’s
equipment just behind their
The interviewer at ZNBC was dull to say the least. Why not ask him searching questions to his lies? For example, he said the KCM was paying a lot $30 to $ 40 million in form of mineral royalty which is 6 % of the Profit, why not ask him how much profit the KCM makes? Or you can just calculate and find that 100% profit is is between $500 to 667 million . So what is $ 30 million out of $ 500 million?
Please ZNBC wake up guys, dont be so dull in interviewing.
I am very annoyed.
Peace and Prosperity to Mother Zambia.
The guy who was interviewing diz guy is dull,honestly who do you go to interview a high profile person without doing any reseach on him and his company or maybe its one of his chola boys at KCM who was just hand picked en they opted to use the ZNBC studio,foolish me. Indians are slowly turning KCM into another Binani,company infrastucure is in a mess,the company does not even have road worth ambulances to take employees to the hospital once they fall ill while on duty.Kcm has more than 2000 indian labourers en not 95 as declared by diz CEO en it short if he was lying about the number of labourers it simply means all what he was saying were all lies.The government must reposses KCM before it goes to the dogs.
Indians specialise in lying and JJ and Manish top the list. they are racists and if they had their way they would bring the whole of India and fire all Zambians, Shamenda these clowns will outwit you especially that they specialise in bribing the likes of you.