GOVERNMENT has given Konkola Copper Mines (KCM) a performance target and a time frame to put back the operations of the mining company on track.
This follows recent revelations by Vice President Guy Scott in Parliament that ‘strange things’ were happening at KCM and Government was worried and keeping a close eye on the mining company.
Dr Scott had disclosed that the mining company had liabilities running in excess of 1.5 billion US dollars.
Dr Scott said the mining company had also failed to pay its creditors and also had loans from banks.
He said Government had tasked the Ministries of Mines and Finance to give a statement on the issue of KCM.
Dr Scott urged all Zambians to work together to ensure that Zambia did not lose out on revenue expected to be collected from the mining company.
He said Zambia stood to lose revenue in tens of billions of kwacha if the issue at KCM was not handled carefully.
Speaking in an interview yesterday, Mines and Minerals Development Minister Christopher Yaluma said a technical audit had been conducted on KCM and a performance target given to the company to improve operations of the mine.
“We have given them targets of how much they should produce at a particular period of time and as Government we will monitor them to ensure figures are being adhered to,” he said.
The KCM motherbody will also be required to pump in funds to ensure that the mine functions at an acceptable rate and sustain the operations of the mine.
He said KCM had also been directed to pay back the US$1.5bn owed to both local and international institutions.
Mr Yaluma said Government had also agreed with the mining company that there would be no more laying off of workers and the company agreed to the terms given by Government.
He said Government was working with KCM to assist put back the mine on track.
“We have discussed and KCM together with its mother company have accepted and committed to working with us to improve the operations of the mine,” he said.
Kindergarten stuff! The Vedanta people must have been quacking when you ordered them to pay back their international creditors. Why don’t you give Mulenga Sata and other Mayors the same performance targets ?
All what KCM is going through today is because of its out sourcing of labour they frustrated the major contractors at once like U&M Mine, Moolmans, MMS and Grinaker LTA.
The cost of out-sourcing was abnormal and was not realistic hence the present condition of KCM Plc.
Zambian Govt must realize ,that it is trying to distract the attention of the masses, when they own almost 750 M usd to Mines in form of VAT refunds , which have been held back as the treasury is empty & the total lack of Governance in the infrastructure spends which is pulling down the Zambian economy . The recent attempt to revoke SI’s have not helped in boosting the investor confidence , to the contrary , looks a quixotic Govt which does not have a strong long term policy. Stop policing, and get your act right Mr Sata.
The recent increase in Energy Tariffs to the Mines is another example of making investors have no assurance of the Power Stability Agreements ,which Govt’s have assured .
You issues bonds to borrow and make Zambia poor for ever..
Am suprised that government has given more time to these fake investors to mass all the wealth and leave pot holes only in the country. Out sourcing has not worked well in Zambia. Look at the perfomance of Airtel, its below par because of the same outsourcing. The fact is the companies given to do the works are not interested in retaining highly paid calibre staff hence loosing skilled staff. If retained the staff are not well motivated and are given poor condition of service
The government needs that performance target because eventually KCM will use the same excuse of increasing costs, the government is not doing enough to fix our economy with their wrong priorities, if you don’t want them to outsource give them incentives , otherwise they will outsource to keep costs down
The government has again failed to address the big problem facing KCL. “Government gives KCM performance target and a time frame” is not a solution. The government and the ministers involved have turned blind eyes to the actual problems facing KCL at the expense of destroying Zambian economy in order to maintain unnecessary workforce. The government is not a Business Unit to set target and time frame and plan for KCL. KCL says 1+1 = 2 , and Government ministers says 1+1 = 3. The government should stop forcing KCL to maintain workforce which is not needed, but create new industries, new mines, state farms etc. where the laid off workers would be deployed. The government should act quickly because it is a matter of time and does not control market forces, production & energy costs.
Anil Agarwal is a shrewd and truculent businessman from the MARWARI clan (Jews of India). He does not believe in losing. Time will tell, my prognosis is that GRZ will have to inherit Vedanta’s debt. It is time the Zambian Government wise up and be pragmatic. I have a blue print which I cam take to state house at the end of may and discuss with HE Mr President. I can get plans in place in 3 weeks to run KCM efficiently. My plans are as follows:
1) Show the world that indigenous people can run a world class venture. We have a plethora of well trained, and experienced Zambian mining professionals languishing in the townships
2) Use KCM as the springboard to provide practical experience for students studying at UNZA and Copperbelt University
3) Impart modern business acumen across the…