Government and Konkola Copper Mines Plc on Monday held a consultative and information exchange meeting on the implications of the new tax regime on mining operations.
KCM has applauded the Zambian Government’s on-going initiative aimed at regular engagement with the private sector in the quest to achieve sustained economic growth, wealth creation for all players in the economy, and the well-being of citizens.
The Copperbelt based mining giant has also commended the Government for its open door policy and affirmed that Vedanta and KCM’s approach is to resolve matters on the premise of constant dialogue and in a respectful and mutually beneficial manner.
Speaking during the consultative and information exchange meeting held at the Ministry of Finance Headquarters in Lusaka, KCM Acting Chief Executive Officer Venkatesan Giridhar informed a high-level Zambian Government team that Vedanta Group Chairman Anil Agarwal and Vedanta Group Chief Executive Officer Srinivasan Venkatakrishnan are passionate about the success of KCM hence their instruction to management to approach the subject of security of employment tenure with due care and compassion for the citizens of Zambia.
“I wish to confirm, therefore, that there will be no loss of jobs at our sites as a result of the new tax regime,” Mr. Giridhar announced.
“As KCM, we undertake to constructively engage key stakeholders such as the Government, trade unions, the media, local communities, and our shareholders, in a respectful manner to ensure that we contribute to the growth of the economy on a sustained basis,” Mr. Giridhar said.
He said this when he presented a paper on the impact of the new tax regime on KCM mining operations and its future undertakings.
The other issues covered in the consultative and information exchange meeting were KCM smelter business strategy, the deficit of concentrates in the country, the immediate pasts’ depressed London Metal Exchange scenario, and the KCM growth strategy.
Mr. Giridhar took the opportunity to reminisce over the discussions held with the Zambian Government during the visit of Vedanta Resources Group Chief Executive Officer Srinivasan Venkatakrishnan in 2018, on the approach required for further investment and development of the Konkola Deep Mining Project [KDMP] in Chililabombwe within the next 3 to 6 years.
This will provide the bulk of the input material being supplied by Konkola Copper Mines for the smelter, in the medium to long term.
He emphasised that the company was renewing its focus on Konkola Deep Mine in Chililabombwe and would ensure further investment in the short to medium term.
In this regard, said Mr. Giridhar, “our actions are designed to sustain and create jobs, grow the economy, and contribute more to the country’s treasury while effectively implementing our asset and liability management programme.”
The KCM delegation included the Vice President for Human Resources Beatrice Mutambo, the Head of Smelter and Refinery Enock Mponda, the Head Nchanga Business Unit Anil Tripathl, the General Manager for Finance Anand Soni, the General Manager for Corporate Affairs Eugene Chungu and Tax Manager Peter Kangambo.
The KCM delegation agreed with the Government team that positive sentiments are important ingredients in growing the economy through direct foreign and local investments.
He added that negative media reports have in the recent past also adversely affected the operations of the company, thereby causing the impairment of market sentiment; erosion of investor and customer confidence; destabilisation of workers morale; and, unwarranted agitation among other stakeholders.
Speaking at the same meeting, Minister of Finance Margaret Mwanakatwe thanked KCM for choosing the path of dialogue and for the proactive approach in reviewing mine operations, ensuring compliance, sustaining job creation, and contributing to the country’s growth.
Mrs. Mwanakatwe took the opportunity to re-affirm the Government’s focus on domestic resource mobilization, adding that the drive is aimed at raising revenue for investment in social sectors, productivity ventures, and infrastructure development.
The Minister appealed to KCM to implement the commitment made in the meeting to timely pay local suppliers. She expressed concern that the upward trend in imported concentrates in contrast to the downward trend in locally mined concentrates was a worrying scenario that creates the impression that KCM has been focusing more on trading than local mine development.
Further, Mrs. Mwanakatwe stated that the assurance made by KCM to complete the development of long-term ventures such as the Konkola Deep Mining Project within the next 3 to 6 years was uplifting and a good sign that the firm would finally get rid of its loss-making image.
In response to KCM’s concern about its battered image, the Minister called on all corporate citizens to raise their game in propagating correct information to the local and international investor community, the positive strides that were being made in economic management and to challenge any incidences of misinformation as that not only affected the smooth running of the economy, but it also had a debilitating impact on individual business entities because of tampered economic fundamentals arising from fake news and malice.
She took the opportunity to explain that the Government’s interest remained that of working together with the private sector, local communities and other stakeholders in the economy in arriving at win-win scenarios.
Mrs. Mwanakatwe also reiterated that once the drafting process was complete, the Government would circulate the Goods and Services Tax [GST] White Paper to the public for analysis and feedback before the final design of the proposed measures are presented to Cabinet and later Parliament in form of a bill for debate and consideration.
“Let us walk the journey together so that by 1st April, 2019, we can implement the Goods and Services Tax (GST),” Mrs. Mwanakatwe stated, and added that the GST will be a hybrid of Value Added Tax and Sales Tax, with all the attendant incentives and exemptions for manufacturers, exporters, and other eligible sectors of the economy such as education, health and agriculture. “The difference with the current VAT is that there will be no refunds,” clarified the Minister.
The other Government officials who attended the meeting include Minister of Labour and Social Security Joyce Nonde Simukuko, Copperbelt Province Minister Japhen Mwakalombe, Ministry of Finance Permanent Secretary for Economic Management and Finance Mukuli Chikuba, Ministry of Mines and Mineral Development Permanent Secretary Paul Chanda, Zambia Revenue Authority Commissioner General Kingsley Chanda, Labour Commissioner Chanda Kaziya, Ministry of Mines and Minerals Development Director of Mines Mooya Lumamba, Ministry of Finance Director Investment and Debt Management Jacob Mkandawire and Ministry of Finance Acting Director of Budget Willies Chipango.
Addressing the meeting, Mrs. Simukoko said mining companies need to ensure that the Government policy on minimum wages for all their operational units and sub-contractors, is complied with unfailingly.
The Minister of Labour called on KCM to demonstrate stability in operations by deploying management teams whose tenure at the company assures the Government and other stakeholders that additional investment projects which they had consistently announced, became operational.
She requested KCM to remain firmly committed to nurturing mutual trust in its relationship with other stakeholders and compliant with all applicable operational and labour laws.
And Mr. Mwakalombe called on KCM and other mining companies to consider giving long-term contracts to local contractors and suppliers as that helps to widen the tax base and avails the Government more options for domestic resource mobilisation.
“In pursuing your growth objectives, you need to take greater interest in the well-being of the communities in which you operate by ensuring that you network with local suppliers and contractors and thereby facilitate the exponential growth of the Copperbelt Province,” stated Mr. Mwakalombe.
In response, Mr. Giridhar acknowledged the previous challenges faced by KCM with regard to working capital and assured the meeting that the company was now placing every effort in the timely payment of suppliers and took the opportunity to appeal to the Government team to facilitate assessed and verified VAT refunds.
This is according to a joint statement issued by Ministry of Finance Spokesperson Chileshe Kandeta and KCM General Manager for Corporate Affairs Eugene Chungu.
Old and tired manipulative tactics of blackmailing Zambians cannot fly in this age. They only make sense to desperate and treacherous minds of Hichilema’s Groupthink pitching a a tunnel vision. We are learned, exposed and understands the dynamics of investments, natural resources and need for equity. These multinationals need our resources more than we need them. Let’s get what is due to us as a nation to develop our beautiful nation.
Real men have office jobs, not mines.
My fiance wears three piece suit, not these I see in Zambia,
Miners are helpers I dont respect them
I respect people working in the Bank and Doctors
Thanks
BB2014,2016
Levy Mwanawasa’s biggest mistake was to sell KCM to vedanta.
Zambian management under Jordan Soko was doing a sterling job. Our indian brothers are naturally good at mining, too much kaso.
Pascal of FQM started the threats job losses in his letter to the workers at Kansanshi. If this man had his way, he would have had the govt twisted to reverse the taxes. But alas , MOPANI disowned him, Barrick Disowned and KCM has disowned him too. We are told his GM and HR even tried to lie to the Labour Commisioner. It is these people at FQM who are greedy and do not want to pay taxes. We thank the govt and the president for NOT giving in to arm twisting tacticts of Mr Pascal.
Is this the man who boasted about how he fooled our late president Levy Mwanawasa and how cheap he bought the mines?
Watch you.tube video of Anil Agarwal mocking LPM & zambians how he bought KCM for $25m post-dated payment but has been making $-Billions every year.
How he was given red carpet welcome & parades & a speech in parliament after lying that his huge “delegation” was stuck in Joburg.
Guys, these shrewd cr00ks don’t deserve KCM.
The Minister appealed to KCM to implement the commitment made in the meeting to timely pay local suppliers. She expressed concern that the upward trend in imported concentrates in contrast to the downward trend in locally mined concentrates was a worrying scenario that creates the impression that KCM has been focusing more on trading than local mine development.
Further, Mrs. Mwanakatwe stated that the assurance made by KCM to complete the development of long-term ventures such as the Konkola Deep Mining Project within the next 3 to 6 years was uplifting and a good sign that the firm would finally get rid of its loss-making image.
THESE CROOKS (KCM) MUST BE GIVEN AN ULTIMATUM TO DEVELOP KONKOLA DEEP OR HAVE IT PREPOSSESSED and run it as a joint venture with another company!! WHY IMPORT CONCENTRATES WHEN YOU CAN OPEN A NEW MINE TO CREATE MORE JOBS IN THE PROCESS?? Further we need total accountability on the minerals exported as by-products of copper refining, COBALT,GOLD,ZINC, PLATINUM etc. When we had Ndola Refinery, ZCCM used to give a consolidated report on all these minerals and how they were marketed, NOT under these crooks any more!!
This guy is a bull tricker. He knows there is a case in London court about Kafue river pollution, he has not paid constructors and he has not fulfilled his commitment to develop KDMP. He understands corrupt regimes in Africa very well. So he is conversing for their support. LPM was a victim of this con artist. Careful ECL you be the next victim of the scam back.
Is he the one who mocked us that he fooled our president Levy Mwanawasa and bought the mines cheaply?
Is this the man who fooled our late president Levy Mwanawasa and boasted that he bought the mines cheaply?
For how long will government going to tolerate fake promises from these Indian crooks? They always promise to pay contractors and suppliers on time but do the exact opposite. These clowns should be producing concentrate at their nchanga and konkola mines but they are busy importing concentrate from Congo DR. These Indian crooks should be selling mattresses and vitenge materials at kamwala and not mining, please
Thank you for standing strong ECL and team. They are now retracting their threats. Too bad for the chap hh who sided with the mines but has now been left out to dry. hh should concentrate on real politics not the smear campaign on PF and ECL he is using. Such matters border on national standing not partisan.
The more reason that moron will never be president. He was cheering them on, now is deserted .Under 5 for real
Government through the Mines and Minerals Resources Ministry must formulate a well-thought out policy that supports the sustainable integration and of local SMEs in the Mining value chain. With this in place, SMEs will build capacity, start scaling up and eventually start big time mining operations in Zambia. Remember, even Agriculture was left in the hands of foreigners until recently, most Zambians have realized that it is lucrative business which when harnessed can create local billionaires and contribute to Zambia’s GDP!
That moron that has never held even a councilor position was siding with the mines. Today he is fish dry tiger fish. He is leader of UPND. No matter what other tactics the mines try in the future. Zambians should always side with Zambia. Not Multinationals.
Nzelu, you busy begging them not to fire employees and you call them evil for employing people you cannot create employment for. Your leader has spend colossal amount of money galavanting the entire earth looking for investors up to now with no success. Side with who while we are being sold to the Chinese
These are our mines on our land. Man even if it’s a cabin you own, who ever wants to live in it must abide by your rules apart from paying rent. If he’s not happy he can go find another house.
This must be the beginning of the swift fall of all forms of exploitations by foreign investors in Zambia, and their cooperation on the new tax regime should not be the screen from scrutinizing all other un declared minerals or other under hand businesses they are involved in. Every sector of our economy must be checked thoroughly . Check if the boers are not stealing our game animals again, check what the Chinese are doing. We need scanners at all airports and busy boarder posts. Corrupt leaders and civil servants must be imprisoned without possibility of parole
What exactly is the deal? Anyone smelling a rat?
They are busy struggling the economy with taxes instead of putting a stop to theft of money from the treasury.
Muhammed Buhari has dealt with corruption very squarely by stopping anyone stealing from the treasury. As a result he has $45bn in reserves from £28bn that he inherited four years ago.
More nails in the coffin of ill wishers. It’s illogical to reduce labor when the production targets are tied to the number of employees and machinery. It have been an unforgivable sin if government had succumbed to these manipulators.
its better to reduce man power, the general payroll were suppose to get salary increments in January but up to now there is nothing. the so called engineers, the KCM 5 are slaves of the 21st century no increment for the past 7years. the company is in limbo and its practically, impossible for it to survive with this new tax. the shock will be absorbed by employees through slave wages and prolong drought on increments. if you think we are telling lies, visit shopping centers on pay days. there is absolute no money to spend in these malls. we are even worse than luanshya.