The Centre for Trade Policy and Development has cautioned the Government over the suggested nationalisation of the Konkola Copper Mines or any other mines in general.

“While we understand the displeasure from the government over the continued push back by some mining firms on most policy pronouncements meant to maximise revenue collection from the country’s mines, we still feel a cautious approach must be taken to address the matter at hand,” CTPD Policy Lead-Extractives Mrs.Natalie Mwila Kaunda said.

Mrs Kaunda said this is because KCM employs over 13,000 workers and is a significant contributor to the nation’s exchange earnings.

“Any disruption in operations, would increase poverty and result in continued depreciation of the Kwacha, thereby further compromising macroeconomic stability,” he said.

Mrs. Kaunda said the government’s concern over the poor returns that the country has been getting from the mines is well recognized.

“As Civil Society, this has been our cry for a long time. We have been advocating for a mechanism that will enhance community beneficiation from our God-given resources. We have also advocated for government to increase its stake in the mines through ZCCM-IH since this would ensure that there is more state ownership of public resources and therefore more control over profits and tax revenue, especially at this time when Zambia is grappling with the raising debt.”

“However even as we endeavour to maximize on domestic revenue, we must not do it at the expense of efficiency. We must learn from our past experiences of running the mines which proved disastrous. The same mines that are now seemingly making profits, howbeit not every year, were loss making at the time they were being controlled by the government due to inefficiencies.”

She added, “As CTPD would like to believe that government’s intention is not to start running KCM but to transition it towards improved operational efficiency and profitability through securing another investor. Therefore, the “liquidation” process initiated should not result in the selling off of strategic assets of the mine in order to secure payments for creditors, shareholder, and commissions for the liquidator, as is the case in a “classic liquidation”.

Mrs. Kaunda said performing actual liquidation of KCM will result in closing down the company, laying off over 13,000 workers, tax revenue and forex losses among others.

“It will be extremely difficult to find another investor to take over the mine after asset disposal since the required investment would be very high. CTPD is of the view that KCM remains a going-concern and thus government should follow proper legal process and restraint to mitigate against these potential losses.”

“In the meantime, it is highly recommended for government to undertake a comprehensive audit in order to determine the true value of KCM’s assets and liabilities before proceeding with securing another investor. This will be useful in ensuring that the shares of the mine are valued correctly so that appropriate investment is made in taking over the mine. It is well known that KCM was previously sold for less than its market value, this should not repeat itself in this case.”

She added, “As the president is currently engaging with the different stakeholders in a process of consultation concerning the KCM issue, CTPD would like to advise government to also engage with Civil Society organisations working in the extractives sector. CSOs play a key role in bridging the gap between policy and community engagement.”

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25 COMMENTS

  1. When I made a comment on taking a careful path to get out kcm with caution this situation deserves on Facebook, a lot of people responded negatively. Employees might go without pay for sometime if this situation is taken with force

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    • Probably the worst decision of Ba Edgar made.
      He should have appointed General Chinkuli and Kavindele to handle this mess.
      Not a street thug called Milingo Lungu, what’s family relationship with State House.
      Milingo Lungu should resign on national interest, he is stagging a day robbery.

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    • Kavindele s a thief.
      Ba Lungi shall learn to control his anger and engage professionals, not pseudo professionals attached to PF, to discuss the best course with KCM management, shareholders to find the best way forward.
      Otherwise what Mrs Kaunsa has said will come true and unemployment and crime will go up and Kwacha will be 100 kwacha to a dollar.

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  2. This is where we, most Zambians are at fault by showing desperation too much. KCM has been making Billions of Dollars and most of it, if not all, find itself not in Government treasury but to some offshore accounts and this has been going on for far too long leaving the mining towns ghost places and environmentally dangerous all in the name of employment, what employment? We cant as a country continue to be undermined for fear of losing power, NO, lets do the right thing period. What President Lungu and the PF Government have done on KCM needs everyone’s total support and solidarity because if we dont we shall forever be slaves in our midst of our wealth. Mr. Sardanis, has clearly outlined how KCM, right from the outset has been milking Zambia, NOT copper belt but Zambia and what else do…

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  3. contd
    Mr. Sardanis, has clearly outlined how KCM, right from the outset has been milking Zambia, NOT copper belt but Zambia and what else do we need to say?
    To the author of the above article, I challenge you to identify which country you can go to and behave the the way these mine house behave in the name of investment, it simply doesn’t work. Yes, we shall temporarily be in this situation but certainly a genuine investor is coming on board looking at the global economic outlook of our minerals especially COPPER!

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  4. The takeover of KCM by government is a good move but still not sure whether it result in positive move or not considering the type of PF leadership style.
    There is a possibility of three things to happens;
    1.Vendata may retain KCM by reversing its hostile administration system with arrogant attitude to wards Zambians and our political leadership starting from the days of Sata
    2.Vendata may retain KCM by bribing the executive . You know kasaka ka ndalama is still active and live in our political arena and continue mistreating the ordinary people.
    3.Vendata may fail to fulfil the new or old conditions and leave.

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    • Vedanta will not leave minus 3 billion dollars dent on lungi dengu’s Treasury. Lungi is an idyot

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  5. The issue is that the company has been paying $1m every year to the holding company and has not remitted or paid any dividend to the Gov, they have not invested any money to improve the company since purchase and most of the works they have been done ,have been out of the same sales of copper. Recall this is the same mine that was sold by Levy Mwanawasa for $25m and yet just the hill grid alone cost over $10m just imagine how corrupt our leaders have been.The issue is now in the hands of pf and how they come out of it is solely in their hands. The take over was long over due in fact it has been delayed, no one was happy with Vedanta, people who know the situation understand but how the pf will handle this is another story!!! These NGOs who always want to condemn the govt don`t mean well…

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  6. PF ‘nerdic’ cadres see beyond your noses!
    Mine grabs aren’t meant for benefit to Zambia but their selfish reasons.
    PF can never bring NIRVANA OF PLEASURE to Zambia unless via a miracle of 2nd Jesus resurrection!
    The mine grab is for openning a new window of sustaining stealing now that the loan coffers are dry.
    Ultimately it’s for loan repayment by offering the mines to Chinese Shylocks or via vulture funds!

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  7. GRAB MINE ==== INSTABILITY = INVESTORS LEAVING THE COUNTRY = LESS REVENUE, LESS JOBS MORE HARDSHIPS ON THE POOR . I THINK THAT THIS MINE HAS ALREADY GIVEN THERE CHINESE CADRES AND THEY ARE USING EVERY EXCUSE THEY CAN FIND TO GRAB THE MINE……..ONCE THIS GOVERNMENT STARTS NATIONALISING MINES THEN WE ARE ON THE PATH TO WHERE ZIMBABWE IS…………..BURIED DEEP UNDER THE MUD

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  8. Has Zambia got capacity to run the mines? The answer is in affirmative. We should not let posterity judge us harshly owing to failure to take up risks. We owe posterity an explanation as to why we left the mines to be run by foreigners who had no interest of the nation at heart. It is folly to live everything in the hands of foreigners. Why do we have schools of mines and technology, if we are to rely on expertise from abroad? Zambia has skilled manpower who can do better if the tools are provided. The only thing that is required is to put in internal controls to curb corruption and pilferage of assets. Zambians should not be afraid to take a bull by its horns and run the affairs of the nation. Foreigners should not take center stage in running the national agenda.

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    • infact the junk and real work at all these mines is done by zambians graduated from trade schools, technical institutions and universities in Zambia

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  9. She’s beating about the bush, just state whether you support the action taken by government or not

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  10. Mbaluso, walasa mune. It’s drama similar to what’s going on here with Nissan and their French patners, Renault. Zambians shouldn’t be looking at this through political spectacles at this stage. There’s more at stake.

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  11. ” Ubo bupuba mwayamba” thats what my late mum would say when you are speaking isensible things

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  12. Mbaluso is dead wrong, first of all you failed miserably the last time you tried. Secondly, Zambians have poor work culture which can kill any serious business. You have seen foreigners including the Chinese prefer hiring themselves. Thirdly, you Zambians don’t respect government property and will abuse it especially with lawless PF in power. You will have a situation where cadres will be stealing our copper and Lazy Lungu will be shielding them from prosecution. Lastly, if you can’t run Zampost what makes you think you can run the risky mines. PF will regret this move when those miners start demanding for the money you do not have.

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    • @China, I agree with you on that one. The point I get from your thread is based on insufficiency of leadership. In the absence of leadership, abuse is inevitable. The best leadership can only come when ignorance and poverty are eradicated. A person who is educated will select leaders based on a point of knowledge. He or she will not vote based on euphoria. A vote determines the destiny for our nation. Even on these threads,people will insult each other because they cannot raise the barometer of debate above mediocrity. Our generation should be above insults and name calling. We need to brainstorm and argue on issues that are affecting our nation. Zambia is suffering from wounds of poverty,ignorance and diseases. It needs a crop of leaders who will be above pettiness.

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    • You’re right. After the closure of ZCCM Kabwe Mine in 1994, a group of educated Zambians came together and bought Kabwe Base Plant at a give away. What is there to show off or what has come out of there. Greediness is what kills Zambian industries. As I am speaking there are 31 parastatal loss-making companies out of 38. These companies are supported by Tax Payer’s money. No proper plans, when the government has a backing from the people. The government is failing to carry out operation excellency at the right time.

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  13. The way we behave is Zambia is like someone who has sent a child to school to go and study brick laying course. When he wants to build a wall fence, instead of hiring his son to do the work, he employs an outsider. The human capital we have, as a nation, needs to be optimally utilized in order to remove the nation out of an abyss of poverty. Foreigners will never develop our nation. Is it not a paradox that we have a lot of resources with a high level of poverty and diseases? We have a lot of respect for foreign skilled manpower than local skilled manpower. We need to change our mindset and utilize our locally trained manpower.Why should we train highly qualified manpower and dump it in the streets?Foreigners, when they get employed here, they are even paid weather allowance.

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  14. Anil Agarwal & co.had a pollution CASE (from Zambia)in London,how did it go…?
    It’s been 29 years since the Mineral conglomerates sabotaged this weakness of successive Zambian government.
    Many economic- vile have been perpetrated by mine investors in the name of political meddling.
    But everything has it own time and the world is changing,CHANGE IS INEVITABLE IN LIFE.

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  15. ZCCM was contributing a lot more to the country than all these goons you call investors! All surviving members of Chiluba’s MMD government should be thrown in jail for destroying ZCCM.

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  16. What is the best method to get rid of rats in the house? Is burning the whole house the wise way to get rid of rats?

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  17. The fact that Zambia failed in the past doesn’t mean it has not learnt lessons and has been condemned for eternity from running mines. Zambians can still run mines effectively. So 20 years after privatisation and re-training of Zambians nothing has changed? What is needed is to find a way of effective leadership in these mines, and effective ways of utilising technocrats. We know who is needed to run the mines, their qualification, experience and gross attitude required. For example it can be changing the way the boards are appointed who later recruit and appoint executive leadership. Because we know that the current system doesn’t work well for us we can find another way, there are always other ways. For example why don’t we have a vote for boards and senior management teams in these…

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  18. For example it can be changing the way the boards are appointed who later recruit and appoint executive leadership. Because we know that the current system doesn’t work well for us we can find another way, there are always other ways. For example why don’t we have a vote for boards and senior management teams in these companies? Like I said mining is a closed industry and almost all miners know each other (senior leadership and technocrats through professional groupings etc.) If someone has worked in Zambia they know how Zambian mines have run for years. We can track and trace people who have worked at KCM in the past and now and we know what they can bring to the table. Just like politicians we know performers and non-performers. Over the years we can tell poor managers who are not…

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  19. . Over the years we can tell poor managers who are not positioned to lead mining. From the pool of 100 or 200 individuals we can effectively select those that can drive change in these mines. Advertise these roles so that quality leaders and technocrats can participate and placed in right position. With clear mandate and non-interference these can perform. Professional grouping like EIZ, EAZ, LAZ, HRIZ etc. can contribute to the base requirements can be used to shortlist the potential teams.
    What has killed Zambian mines like any other industry is misplaced personnel (wrong people doing the jobs they are not equipped or qualified for.) You want to have Lawyers running mines, Mine engineers doing farming, Geologists supervising safety on roads and farmers manufacturing copper cables…

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