Mines Minister Richard Musukwa says Zambia will carry out regular audits at all mines to avoid any repeat of the situation at Vedanta unit Konkola Copper Mines (KCM), which has breached the terms of its license.
President Edgar Lungu said on Monday the government planned to strip KCM of its mining license and bring a new investor into the operation.
His spokesman said the move followed a number of breaches of the terms of the license, without giving details.
A court hearing has been scheduled for Friday, following a high court order this week that named a Zambian law firm as the liquidator to oversee KCM.
Mr. Musukwa said the action at KCM “should not be misconstrued as nationalization” and followed KCM’s failure to “comply with license conditions”.
“The government will be undertaking regular audits at all the mines to ensure compliance and avoid the recurrence of the situation at KCM,” he said.
Mr Musukwa has reiterated that the role of Government is to create an enabling environment for investment that creates mutual benefits for the country and the investor.
The Minister has stated that what Government is doing at KCM should not be misconstrued as nationalization.
“The action has been triggered by failure by the investor to comply with license conditions and will therefore be dealt with in accordance with the provisions of the Mines and Minerals Development Act of 2015 and other relevant laws.”
Mr Musukwa stated that care will be taken to ensure that no undue socio-economic distress is caused and that the investor is not in any way unfairly treated.
“The Government of the Republic of Zambia values the investment by the private sector in the Zambian mining industry and the economy at large. Investors are important in the development process of the country as such we will endeavour to dialogue to resolve any issues affecting businesses. However, Government shall penalise any fraudulent mining company to prevent loss of the much needed revenue and save jobs.”
Me. Musukwa has since called upon the people of Zambia particularly those directly affected by the developments at KCM to be patient and allow Government to resolve the matter as outlined in the law in the best interest of all involved.
On May 21st 2019, Government named a provisional liquidator to manage the affairs of KCM, Mr Milingo Lungu.
There it is gentlemen. It takes a crisis for the PF to realise that audits are required. Dununa reverse indeed.
@1 ECL, we can really wonder, these chaps…!! The problem is real technocrats have been shunted aside in preference for party cadres!!
Government has done well to interven, not everything is dununa reverse you HH blind followers. Its a right step in a right direction, the problem is instead of unitying as ones opposition UPND begins to misbehave – who is talking about selling the mines and why should you buy someone a house when you former vice president was evicted and you did nothing…
Anyways, the point is we all know who sold the mines, where he lives, how many cows he has but we have forgiven him – for now, we are kicking KCM out…lets work together!
This has been blown out of proportion.
I’m inclined to believe president Lungu
Thanks
BB2014,2016
What assurance can you give other mine
Owners that they will not be next? Once
KCM has been stripped then we will Think
Of who is next. Just look at the team which is there?can’t wait to see results.
Even one would have loved to hear that ZCCM-HI is taken over KCM. Unfortunately, that Musukwa who lost elections to NDC in Roan continue to show he is just a cadre.
Musukwa start to look like a fool and insulting his Boss.
His boss has appointed a PF cadre to lead the rooting operation.
You Musukwa introduced Milingo Lungu, Kaizer, Amos Chanda as high powered delegation in a meeting fully packed with Jerabos.
Is the new investor The PF or Jerabos?
IF YOU HAVE NOT BEEN KEEPING AN EYE ON THE MINES THEN WHAT HAVE YOU YOUR LUNGU BEEN PAID TO DO, HARASSING THE OPPOSITION AND OTHER CITIZENS.
Opposition is very indiscipline, the next step is to liquidate HH we recovery to money…
“President Edgar Lungu said on Monday the government planned to strip KCM of its mining license and bring a new investor into the operation”. I already know the “New Investor”
Business men are crooked thats while it becomes hard to fix them.
If you let him loose he will go to india for another talk show that Zambians are easily fooled
These mining companies have been playing chase with the Zambian people for such a long time. Do not be afraid to Nationalise if you have to. The UK second largest steel company is about to close under similar dodgy circumstances and the government considered taking the mine back. Why should Zambia adhere to policies designed to impoverish its people? If they don’t want to share, we are better off shutting shop until a serious investor shows up. Anglo American is itching to come back and finish us off. We should not forget our history with these mines so quickly otherwise they will bring us civil unrest.
Most other mines are ok , it is Indians that are a problem.
Zambia has been through some very bad patches in our history and has always had a large Indian population, but has gained next to nothing from them. Only capital flight.
If we had the same population of whites or Chinese during those trouble times , I am sure we would not have suffered as
Much …..
Indeed bring in white or Chinese investors to replace those Indians
So this guy is accepting that not audits were carried from the time KCM bought that mine? How ironic and paradoxical. Resign since you have declared your incompetence publicly. What more do we need from this mappet? In fact he looks like a kaponya than a man befitting to be a minister. The level of recklessness in this government is appalling to say the list.
Invoking the Mines Act provisions for breach of license conditions is a rational approach to addressing the problems at KCM not liquidation provisions of the Corporate Insolvency Act. If Govt involves Mines Act provisions on Monday next week, what happens to the on going liquidation proceedings in Court? Where are State Chambers kanshi? This is messy
*****
Moron