Eurasian Resources Group and China Non-Ferrous Metals Co. expressed interest in buying Konkola Copper Mines, should the Zambian government succeed in seizing it from Vedanta Resources Ltd, people familiar with the situation said.
Eurasian Resources, owned by three Kazakh billionaires, approached the government about two months ago, according to the people, who declined to be identified by name.
CNMC also wanted to buy the assets, they said.
The Chinese company offered to spend $2.5 billion on development, one person said.
At stake are copper mines and resources in one of the world’s richest deposits, which stretches from Zambia’s Copperbelt region into southern Democratic Republic of Congo.
Zambia, cash-strapped and struggling to contain debt, says that Vedanta hasn’t met its investment promises and paid too little tax, while the company says it is a “loyal investor” that’s spent more than $3 billion in the country since 2004.
Eurasian Resources and CNMC declined to comment.
Mines Minister Richard Musukwa wouldn’t immediately comment.
“KCM isn’t for sale from our perspective,” a spokesperson for Vedanta said by email.
“While we remain open to dialog with the Zambian government, we will consider all options to preserve our legal rights.”
State-owned ZCCM Investments Holdings, which owns 20.6% of KCM, asked the Lusaka High Court on 20 May to liquidate the company because it hasn’t met the conditions of its license.
The case, which is being challenged by Vedanta, was postponed to 4 June.
Vedanta, majority owned by Indian billionaire Anil Agarwal, says the deposits could be mined for another 50 years.
The company valued the assets at $1.6 billion in its last annual report.
Agarwal, in a “personal message” published in Zambian newspapers said the attempted liquidation of KCM “can only hurt the country’s hard-earned democracy and investor-friendly status.”
Source: Live Mint
Oh no, China is over populated. They came to stay and still coming, wow!
Sell it to HH
Why so fast??????????? Are there no Zambians who can afford to buy KCM mine?
This is why Amos and Kaiser have moved to CB as they are after 5% commission of that sale figure as they can tell liquidated to dream up any figure as costs!!
Empower Zambians.
Once bitten, twice shy. Politicians have embarrassed us and the country. Please let and allow Zambia’s economic technocrats and experts have a say in how we resell KCM.
Don’t allow fainthearted, shortsighted goons to handle this matter. Double h and previous Governments are a total let down. “Yes worst human beings on earth.”
Zambians can buy it.
There are stable business men, who can bundle up like:
Kavindele and Milupi, they know business.
Underground has already contractors, transportation is contracted, sales can be done by ZCCM-HI. Simple.
The worst characteristics any leader can ever have is to be both a kleptomaniac and a dipsomaniac.
This one (KCM) is not for sale after liquidation. Sorry … we are owning it ourselves and we will run it the best way we know how.
Epo mpelele,
BRM
Zambians can not buy that mine…Zambians do not think global or tap into Global funding markets…the ones that have little money are old school they dont want such high profile projects…no one wants to deal with the corrupt unions on day one.
The Chinese are not any different from these Indians. Don’t sell the mines to the Chinese, please.
And so the cycle shall continue.
I say, offer it to the Trade Kings group. Thats one Zambian company that really knows business.
Tiye uko ku india we mbwawe…. deport all KCM collies now!
No Chinese.. look at CNMC and what they have done to Luanshya. ZERO impact and relevance to the town, local business community, its people and jobs.. ZERO… No Zambian I know has a contract for or supplies CNMC anything.. not paper, tissue, spoons, bulbs nothing.. They dont deal with local suppliers for even the most basic things not even accomodation, security or transport services for staff.. everything come from China in 40 ft containers. GRZ please, especially that CNMC is a Chinese Govt entity and state actor which we will never be able to control or discipline. Chingola will be like Luanshya and masses will suffer.
3, you are 100% spot on. CNMC Luanshya, even electrical cables, they cant buy from zamefa which is equally in Luanshya but prefer to buy from china.
Digga – PF crooks are not savvy enough to attract anyone else….only Chinks that’s why they are being swindled by Chinks
Now, Luanshya is vibrant you can even lose a second or two trying to find parking space! Rewind to 2010, driving into town any day of the week felt like a Sunday near ghost town. Majority populace turned to charcoal burning. I have been neighbors with Kambwili and can testify he was actively uprooting rails and scrapping anything for a livelihood.
Chinese will pay on time. They will run an entity that barely breaks even like Baluba mine that was abandoned 3times by the choice investors you bloggers crave for! Like chambishi mine that was placed on care and maintenance for 13 years by zccm management. The little pay is largely due to defective labour laws that the inept unionists can’t amend because they are I’ll trained or simply at sea with what they have to grapple about. Local suppliers and contractors are “get rich quickly” and brief case operators.
We hear KCM will be going to Eurasian Resources Group after mine workers’ unions on the copperbelt advised government against a Chinese take-over in view of the poor mine safety records of the Chinese at home and abroad. The information is that negotiations have even advanced with government. The Kazakhs are poised to take over!
My submission, ZCCM-IH should get the majority shareholding. That way, they can help our local manufacturing base to grow and support local suppliers.
Do you remember in the early 2000’s when CB was full of proud suppliers and cars where very expensive on CB?
ZCCM-IH can have a strategic partner but hey should be the majority shareholders. If a foreign entity becomes a major shareholder, they will support only manufacturers and suppliers from their countries. We see that today with all the mines.
The Chinks can buy it for $1 as you owe them a lot of money they are not stupid as that CNMMC is a state own corporation …PF are a very reckless bunch of individuals not to trusted.
The picanteria to the whole story is that in the case of the Kazakh’s, the engineers who built that mineral resources empire were Zambian engineers who were declared redundant by ZCCM. Uufff!!!
SELL IT TO KNOW-IT-ALL LOUD MOUTH @ jay jay
If it wasn’t for the poor leadership we have at the moment,I could have said LET US OWN IT,BUT YABAA…IT CAN JUST BE A CASH COW FOR PF CADRES and no time it can close! We are very unfortunate to be the way we are,with a careless leadership!!
As I said when this happened THE WHOLE REASON THE GOvernment is doing this is TO SELL IT TO SELL it to the CHINESE!! Fellow Zambians we are in even deeper trouble than we thought. Our Country has been sold to China!!!!!
Unfortunately, the highest bidder gets it
CNMC IS NO DIFFERENT FROM INDIANS INFACT MWENYE BETTER BECAUSE THEY ATTEMPT TO SPEAK BEMBA AND NYANJA CHINESE NEVER EVEN THEY DONT WANT TO EAT YOUR NSIMA BUT A MWENYE DOES
We warned Zambians that the greatest beneficiaries in this KCM thing are not the Mine Workers or Suppliers but Plot 1 Guys! Play boys will always be playboys!
Is this the right procedure for getting a replacement for Vendata? Why has State House been allowed to continue flouting tender procedures for mega deals with impunity? When did they advertise and what are the Ts and Cs? Why has State House been turned into a den of dealers?
The fact that this process lacks transparency means a select few want to cash in big through kick backs! I smell rats! What started bad may end bad! We are good at poor finishing after all!