Suppliers and contractors have expressed happiness with the improved payments to suppliers by Konkola Copper Mines (KCM) following the directive by President Rupiah Banda recently.
The Kitwe District Chamber of Commerce and Industry (KDCCI) said it was encouraged by the improved payments to suppliers by KCM.
And Mine Suppliers and Contractors Association of Zambia president Fanuel Banda said in an interview in Kitwe yesterday that the mining firm had effected payments up to April this year.
KDCCI president Berry Mwango in a statement yesterday said payments had markedly improved following President Banda’s visit to the mine recently and the completion of works on the company’s accounting system.
Mr Mwango said the company, which had not paid suppliers going back 90 days, had managed to pay up to March.
He expected KCM to pay on all invoices for April by the end of the week ensuring that the payment period was reduced to 30 days.
[pullquote]“Following the president’s visit and his plea to the company’s chairman to ensure suppliers were paid, payments have improved,” he said.[/pullquote]
“Following the president’s visit and his plea to the company’s chairman to ensure suppliers were paid, payments have improved,” he said.
Mr Mwango said even the newly completed accounting system that the company had put in place, seemed to have improved payments.
He said the chamber was happy that payments had finally improved at KCM and that through dialogue, a better work environment could be established with the suppliers.
“This dialogue which has led to improved payments is what we have been asking for all along and we can only hope that such interactions will continue,” he said.
And the chamber said the company had not yet implemented the mandatory quality requirements for suppliers.
Mr Mwango said KCM was scheduled to hold a meeting with suppliers on how the system would work and that before then, it remained suspended.
He said the ISO certification was a good system but that it was costly for some business because of the few experts available to give certification.
He said the process of obtaining the ISO certification was prohibitive because of cost but that this would change if more local experts were engaged in the activity.
“We have had interactions with some Copperbelt University experts to consider specialising in such certification because they would be able to do it at a cheaper rate,” Mr Mwango said.
And Mr Banda said the association had met KCM management who indicated that they had made all payments up to April.
He said the mining company was current with its payments to suppliers.
He expressed hope that KCM would remain up to date but feared that other factors could still prevent this from happening.
Mr Banda said despite having high copper prices, KCM still had problems with the high cost of production.
He said that was why the Konkola Deep Mining Project was important to the company, as it would increase the amount of ore extracted.
He said the more the company produced, the more revenue and subsequently, the quicker it would be to pay its suppliers.
[Times of Zambia]
A year prior to elections is always a circus…. 😮 Oh! and let me see….another Banda [-( ati Fanuel katwishi uko 😕
This is such good news for the Suppliers in the Mining Sector. They have had it rough for the past year or so. However, I do not applaud the fact that it had to take the whole lot of a PRESIDENT to have the payments come through. A supplier is like the vlood line of a firm, and if the supplier is not nourished, the effect trickles down. I also like the fact that Barry Mwango has realised that ISO certification is imperative. If a company has to produce ISO certified goods, it is not only out of ISO certified services and manufacturing processes; but also out of ISO Certified suppliers. There are a lot of experts, in Kitwe and around the country that can see to it that these suppliers meet the needs. Take Brumon Solutions for instance. Take heed to the words we speak! Yarra!
Is there a reason for LT for put in this article. What do you expect KCM is goods or services are supplied to them. It’s only that they know there got a SHABBY kind of Government that they would allow Zambians to be financing KCM Operations. If Sata was President, we shouldn’t be talking about such nonsence. For your information I have stopped supplying KCM because of this stupid approach as my suppliers expect me to pay them in advance and am currently supplying the Mines like FQML and Lumwana that pay 30 days from date of supply. Even the Chineese Luanshya Mines pays earlier than KCM
It is foolish for Fanuel Banda to expect supply of goods and services and expect not to be paid. This stupid kind of thinking needs to stop. If you supply KCM or any Mines, you are expected to be paid latest 30 days on delivery and that shouldn’t be any news. Why should Zambians be expected to finance KCM Operations. This kind of stupid insight by the Times needs to stop. Not sure if HH or SATA was President KCM would have the audacity to push payment for suppliers to 90 days. How come KCM pays in advance and double the actual REAL Invoice value for all Goods from INDIA
Come on this is not news.KCM knows its financial obligations towards suppliers.Other mines pay within 30 pays.Its nonsense to say the payment system has improved,that is the way it should be(:|(:|(:|(:|(:|