Copperbelt University (CBU) Associate Professor in the School of Mines Peter Chileshe says the rift between Copper Energy Corporation and Konkola Copper Mines-over a power supply debt will have a severe effect on the economy if not urgently resolved.
Professor Chileshe says there is need for the two private parties to quickly find an amicable solution because of the economic value of KCM on the country’s economy.
He was speaking in an interview with ZNBC News in Kitwe yesterday in the advent of revelations that CEC has served the mining giant with a notice to cut electricity supply over a debt.
KCM reportedly owes CEC about 40 million dollars in unpaid electricity bills and has failed to settle the debt despite several demands.
Professor Chileshe notes that the dispute if left unchecked will have severe consequences on the social lives of thousands of indigenous Zambians who are employed by KCM.
He has since called on the board of directors for both KCM and CEC to find an amicable way of resolving the impasse without jeopardizing the operations of the mining company.
KCM, which employs over 16-thousand direct workers, is primarily engaged in the exploration, mining, production and sale of copper and copper by-products.
State House Spokesperson Amos Chanda recently revealed that President Lungu had requested the Ministers responsible for Mines and Energy to facilitate a lasting solution between CEC and KCM.
My worry is you worry too much on KCM operation, but KCM is not been honest with the local contractors which it has not paid for over 8 months and no one is talking about it. Does this not affect our economy too. Why must KCM run away with such wrongs. From the word go KCM hasn’t followed the right channel of doing things. Government needs to move in and find new investors ,honestly speaking KCM is taking Zambia for granted because they employ 16000 workers. Am sure it’s easy to find a replacement if we serious.
KCM has never been honest in all their dealings….They export cobalt, and minerals like diamonds which they never talk about. They created an impression that business for copper has been poor yet amass urge profits which does not come back to Zambia.
Lack of Governments interests in digging information about KCM Dealings is where the problem has been. The current and past governments have not take complaints from Citizens within and abroad and other interested partners seriously.
What? KCM failing to pay $40m, you kidding bwana lecturer? That is a huge company and that amount is pea nuts!! Do you know how much copper they produce? According to production figures of 200,000 tons per annum published by KCM last week, @$5,000/ton that debt is only 4% of annual revenue.
Talking about $100 million just from copper and another $100 million from other minerals not declared. Zambia is being held hostage by the copper mines because of the noise the loud mouthed bembas will start making just after a few days of hardship.
Had these P.F clowns, got their priorities right, they would NOT be rushing to China to embarrass themselves begging bowl in hand.
By just ensuring these mining firms pay whats due, for any services they use, including mining royalties, dopey Corrupt P.F, would have enough to finance the running of government, but unfortunately you have a man who “chewed” a widows cash, & we all know how he’s been interfearing when Zambia is owned Billions by some mining firms, coz he’d been given a backhander, that Chakolwa wa bwalwa!
Government should immediately repossess the mine, these Indians have never been serious from the start.
True,,,,,,very true
What’s CEC waiting for? They should immediately restrict power supply to KCM and apply for the writ of FIFA to place KCM under receivership to recover their money. This is the opportunity to get rid of those useless Indians. KCM is even exporting Cobalt without making the necessary declaration. So much for Mwanawasa’s investors!
You call them Mwanawasa’s investors but are very happy to receive bribes from them!!
KCM owes people and organisations a lot of cash and the government does not assist. CEC is owed $40m and our government has not helped CEC to get it. CEC has decided to cut the power and the PF government gets concerned. Don’t the people of Zambia now see where the problem is? Our government is protecting these foreign companies and ditching their own. It is only here where the government bails out companies which are not even facing any financial blues like the 30n tax on internet calls. The monies realised from the Zambian people will be shared amongst Zamtel, Airtel and MtN. India and South Africa aint doing this to their people where these two companies are headquartered. DOES THE PF GOVERNMENT WANT CEC TO FOLD UP? This is a model of good management of a company. DONT BE JEALOUSY…
This is TOTAL CORRUPTION!! The KCM INDIANS are so EMBOLDENED BCOZ THEY KNOW THEY HAVE BOT GOVT which will fight for them!! I wish we had serious leaders, BY NOW VENDATA (KCM INDIANS) would have been TOTAL HISTORY IN ZAMBIA’s MINING! This is an OPPORTUNITY TO TAKE OVER ONE MINE,INCREASE GOVT SHAREHOLDING and CONTROL IN ALL ASPECTS INCLUDING METAL MARKETING TO REALISE HOW MUCH WE ARE CHEATED!! That can serve as a lesson to other mine owners!! THERE IS NOTHING TO NEGOTIATE HERE BUT FOR KCM TO HONOR THE CONTRACT UNLESS THEY FEEL SOMEONE WILL PROTECT THEM!! How can a mine fail to pay local suppliers, CEC,ZRA etc when Copper prices are very good!!
INDIANS HAVE NOT RESPECT FOR BLACK PEOPLE. THAT IS WHY IDI AMIN SORTED THEM OUT. THE REST OF AFRICA SHOULD FOLLOW THAT EXAMPLE AND SEND THESE RACISTS BACK TO THEIR POVERTY RIDDEN COUNTRY.
KCM is consistent in defaulting agreements even a common person in the streets of Zambia is fully aware. Why not MCM, Lumwanaor or any other mine. It’s common sense that KCM feels untouchable for a very unknown reason. Who is to blame? Today it’s CEC yesterday it was their employees, contractors and suppliers. Things will not improve at KCM lets find a last solution before pumping into a rude shock in future.
they owe that much and they bought the WHOLE mine at $25 MILLION, hmmmmm
HH and his team sold the mines to KCM for $25 million, on credit and paid in just 3months. This how HH and team made money and these things are now haunting us. The eggs laid long time have began to hatch.
Ubututu is a Zambian curse! HH selling mines? Ilyashi lya mu tarven.
Ba Nsamya balishupa as far as money is concerned ,But Iam sure some body might have benefited during the sell of KCM in the Zambian privatisation team or the government and that’s why they’re behaving in this way and don’t want to pay for anything .Reposes the mines and let them go back to Gujarat and this will save as a lesson to all mine owners