ZCCM-IH Chief Executive Officer Pius Kasolo said the decision by its Board to drag Konkola Copper Mines to court should not be misunderstood as an attack on the mining firm.
KCM is one of Zambia’s largest copper producers and one of the largest private sector employers in the country, with operations in four locations, namely Chingola, Chililabombwe, Kitwe and Nampundwe.
The majority shareholder of KCM is London-listed Vedanta Resources, which holds a 79.4% stake, while ZCCM-IH has a 20.6% shareholding in KCM.
Addressing a joint news conference with KCM CEO Steven Din on Tuesday afternoon, Mr Kasolo said ZCCM-IH is not in the business of litigating, but in the business of enhancing value for its shareholders.
Last week Thursday, ZCCM-IH obtained a Judgment against KCM in the London High Court in the sum of about $ 103 Million to be paid within 30 days, as a result of unpaid sums due to ZCCM-IH dating back to 2012.
Dr Kasolo explained that the decision to go to court was made in the quest to achieve enhanced shareholder value.
“In the quest to achieve this, there are instances where misunderstandings between parties have to be resolved by an independent body, which in this instance was the courts of law,” Dr Kasolo explained.
He said this should not be taken as a deliberate attack on our partners or indeed a quest to injure them.
“The action was undertaken because we are also answerable to our shareholders and various stakeholders which include the Zambian people,” he said.
Dr Kasolo stated that ZCCM-IH remains committed to ensuring that the KCM operations continue in the country, and to provide the necessary support to them, to ensure that we enhance the value of our stake in the Company.
“Following the judgment and this joint briefing, we wish to state that the business relationship between ZCCM-IH and KCM will continue, but also to remind our partners that we will do what is necessary to protect our interests,” he said.
He added, “Going forward, both ZCCM-IH and KCM have committed to manage the business, in a manner that is mutually beneficial to all the parties involved.”
And KCM CEO Steven Din confirmed that KCM and ZCCM-IH have been engaged in discussions with regards to the price participation settlement agreement, which was entered into by both parties in December 2012.
“I am standing here today as part of a joint press briefing with the CEO of ZCCM-IH, Dr Pius Kasolo, to assure all of our stakeholders that we are working together to resolve this matter amicably and to reassure everyone that there is no risk to the KCM business,” Mr Din announced.
He said KCM remains fully committed to fulfilling its financial obligations.
Mr Din said Vedanta remains committed to the Group’s operations in Zambia, which is reflected by the significant investment of over $3 billion in KCM since 2004.
“Vedanta and KCM have a 50-year vision to continue mining copper in Zambia and we look forward to further strengthening our relations with all stakeholders, including ZCCM-IH,” he stated.
Don’t apologise. You’ve done well these companies are taking a lot of money to there countries and they are investing in there own countries leaving our environment damaged.
A qualified man in the right position. And please pay attention to what he says.
My uncle as well a double whammy.
The truth is – Copper is only used for power transmission in residential houses. Aluminum is used for mains power transmission.
Why on earth is there more demand for copper than aluminium- I will never understand.
Thanks
BB2014
Congratulations MUSHOTA for being the BEST BLOGGER 2016 as well as the MOST IRRITATING BLOGGER 2016.
However, I am surprised by this vote and I think THE VOTE WAS RIGGED.
HOW POSSIBLE IS IT THAT ONE PRODUCT WILL TEST SWEET (best blogger) AND AT THE SAME TIME ALSO TEST SOUR (most irritating)?????????
why reach to the point of litigating..seems the other party did not honor the T.C agreement.
The Indians at KCM are a bunch of crooks. They should pay up immediately. Don’t negotiate with them AFTER a court decision they have lost. In the meantime KCM continues to pollute Mushishima Stream and Kafue River. These are not the investors Zambia deserves.
Can someone please explain to me why Pius Kasolo is still CEO of ZCCM-IH?
Because he was appointed to the position and is fit to be.
I guess performance and profit is irrelevant in Zambia.
Because he is Sata’s nephew and PF belong to Sata’s clan.
“Last week Thursday, ZCCM-IH obtained a Judgment against KCM in the London High Court in the sum of about $ 103 Million to be paid within 30 days, as a result of unpaid sums due to ZCCM-IH dating back to 2012.”
What happened to 14 day deadline…why would you feel the need to explain this Kasolo when the debt has been outstanding since 2012…explain to us when ZCCM-IH is going to record a profit.
I hope they reach an agreement were KCM wont pay or pay half
@1 Indeed why apologize when these mines have made the reembursement of VAT as condition for not to retrench miners? It’s been a hot issue as if bena taba kongola.
…what are these kid gloves i’m seeing now on ZCCM-IH fists…???…literally undermining the London court ruling….that ruling was done on behalf of the people of Zambia and not the Kasolos and team…just let KCM honour their obligation as per ruling..period…no compromises
KCM and Vedanta are a UK-domiciled company…they are going to obligate…Kasolo and his team should just route all communication to their lawyers from these crooks and come back to this issue in the new year…there is absolutely no need to give explanations to nobody. The problem with us Africans is we do not know how to play this game in their own backyard.
Why apologising? ZCCM-IH belong to Zambians. Gte what belongs to Zambians. These mines have not been apologetic over VAT refunds. I wonder if u are the right person for the job?
Mushota, Copper is increasingly finding its use in in high-tech electronic products that ranges from aerospace, automobile, computers etc. and you will agree with me that these products are a lot more valuable than power transmission cables. The fact that cheap aluminum has properties enabling power transmission over long distances with negligible energy losses is but a blessing for copper as the red metal can now be used where it is more valuable
ZCCM ih should instead of getting cash just increase its shareholding in KCM. This is one way we will start empowering Zambians and eventually take over our mines
You make an interesting suggestion. However, ZCCM-IH need the cash. Also the Indians are likely to overvalue KCM so that the ZCCM-IH top up is limited. Also know that Vedanta does not make money out of KCM by decorating dividends. Instead they strip value by sourcing from their group companies, selling copper through group companies, paying management fees etc. These are schemes that ZCCM-IH cannot participate in unless Zambians gained majority control of the company.
… by declaring dividends…
Thanks to Kasolo these companies might start to learn the lesson that the resources are ours and if they want access to them, it is because we choose to let them. No longer will they be able to say that they do not make profits.