Minister of Mines Richard Musukwa has said that the government will soon announce a permanent solution to the liquidation process at Konkola Copper Mines (KCM).
Mr. Musukwa said that the government does NOT desire to prolong the liquidation process but wants to guarantee operations and secure thousands of jobs at the mine.
Last year, the Zambian government applied to liquidate KCM because of the firm’s alleged environmental and financial regulation breaches. According to Mr Musukwa, the liquidation of KCM was also a warning to other investors in the country to follow the rules, or else. “The case should instead be used as a signal to other mining companies not complying with the law to put their houses in order,”
Following the liquidation, Vedanta Resources rushed to South Afric, where the South Gauteng High Court granted Vedanta an urgent interim interdict to stop the Zambian government from forcing through a liquidation of KCM, which could involve a plan to sell the disputed assets which have received $3 billion of investment from Vedanta and is 79.4%-owned by the Indian company.
Vedanta welcomed the ruling from the South African court, saying on the same date in a media statement that the implication is that the KCM provisional liquidator could be discharged from the office.
However, while Vedanta cheered over South Africa’s recent court ruling against the Zambian government’s liquidation of its majority-owned Konkola Copper Mines (KCM), Zambian officials rebuked the decision and denied the enforceability of the foreign ruling that determines the future of the country’s largest copper smelting assets.
President Edgar Lungu also met with the chairman of Vedanta Resources to discuss the disputed liquidation of its Konkola Copper Mines, but State House issued a statement saying that while the president agreed to listen to Agarwal’s position it did not change his mind.
“The president stated that the position the government has taken has the support of the people of Zambia, and the meeting will not affect the ongoing liquidation process,” the statement said.
And Finance Minister Bwalya Ng’andu says the Copperbelt Province is key to the national economy because of its huge contribution to the treasury in the form of taxes.
Dr. Ng’andu says he is hopeful that the government will soon find a permanent solution to the situation at KCM.
Earlier, Copperbelt Minister Japhen Mwakalombe said the protests that rocked the province against mining houses have ended because the government has provided leadership.
Meanwhile, KCM provisional liquidator Milingo Lungu said management at the mine is grateful to the government for the support shown during the period.
The Finance minister is leading a delegation of ministers on the Copperbelt to understand the challenges in the mining sector.
Zambians Needs To Eat The Meal On The Table, Not Fight With Their Brothers And Sisters Over The Crumbs That Drop Under The Table. !!!
KCM are strong, they have survived hostage from PF led by Milingo Lungu day robbery.
Stay strong KCM for 1 more year, help is coming from UPND, they will chase you with dignity.
Next time you think of privatization, think twice because you would not know what you could be dealing with.
Never again should our country sign up to allien concessions like the Imperial underhand methods of the IMF and World Bank.
Repossessions are always messy. SAP and privatization were engineered to make a take over hell.
Selling your mines was like selling your souls to the devil.
Good luck Richard.
Next time don’t run to the bazungus to lobby them to come and show us how to mine gold. “You will touch the ground” as they walk away with valuables. Why wouldn’t they despise you in their mother tongue in front of their business crooks in their land.
They have run the company into the ground at the expense of taxpayers …A permanent solution to PF is bringing in their masters from China.
They hv no idea hw much they’re arming the Indian tycoon who has controlling shares in KCM by behaving this way. Why should govt announce the future of KCM and not the provisional liquidator Milingo Lungu? And the liquidator at law has to consider the interests of all parties with a stake in the company in liquidation. The Indian is going to sue in London and govt is making it easy for him to win by making such statements.
Nostradamus,you confuse yourself.You don’t really understand anything.You wouldn’t write that KCM has survived from PF. This shows that you guys in diaspora comments with social media knowledge only without facts on the ground.
Thorn in the bum did you know that your dull government has practically sold the majority rights to a gold mine for $2.5 million?? A Sudanese firm? So who are you directing that privatisation speech to? PF? Am afraid you are a little too late
The problem is that the PF always infiltrates every sector, even when something is clear and needs a professional approach, party cadres always take charge and corruption takes centre stage. How the PF Copperbelt chairman managed to register a new company that was then awarded over $700,000 worth of contracts and paid upfront by KCM still baffles a lot of right thinking people. PF indeed is like termites that eat the country’s systems from the inside, completely weakening even strong structures. It will take decades to undo what this party has done to our beloved country.
The people of Zambia will it. In any case Zambians have a case for pollution and murder by pollution by Vedanta. WE CAN WITHHOLD ALL THEIR INVESTMENTS/ASSETS TO PAY OFF VICTIMS. We are righteous in our stand.
UPND supporters need to accept Privatisation is the worst experiment in our country’s history. And no one involved in it should ever be President of Zambia.
Please liquidate immediately and serve with a straw and slice of lemon.
Let’s not beat about the bush. LPM’s decision to sell KCM to Indian owned Vendata despite a massive national outcry is the genesis of the problems at KCM that we see today. VAT refund tax system is a HUGE scam. GST suggestion by Kingsley Chanda was a good solution but unfortunately we had a joker of of minister of Finance. And everything went down the drain. Saasa’s opposition on implemention was correct. But the principle behind Kingsley Chanda’s initiative remains valid. It’s the execution that was extremely poor. Shame on the ministry of finance.
They have now seen that its not easy to run the mine. They have failed to pay for power and now CEC wants to disconnect them. They are looking for a way out hence the new stance and statement.
CHINESE INVESTORS ARE BEING DENIGRATED AND YET THEY NEVER CLOSE DOWN MINES WHEN METAL PRICES PLUMMET
ALL YOU NEED TO DO IS STRENGHTEN THE MONITORING REGIME BY GOVERMENT
THAT IS THE REAL PROBLEM IN ZAMBIA:THE MINES MONITORING SYSTEM – IT IS VERY WEAK
I AM TOLD GOVERNMENT IS ADDRESSING THAT VERY ISSUE BY FORMING WHAT WILL BE CALLED A MINERALS AND GEOLOGY COMMISSION
BUT IT MUST HAVE TEETH
Sell all mines to Saudis. They are looking for diversification. Great be them some farmland as well