Mines and Minerals Development Minister, Paul Kabuswe says court cases between Vedanta Resources Holdings Limited and ZCCM – Investment Holdings (ZCCM-IH) have finally been suspended to pave way for dialogue.
Vedanta Resources, which has an 80 percent stake in Konkola Copper Mines (KCM), has been embroiled in a long legal battle with ZCCM – IH, the minority shareholder, over the appointment of a provisional liquidator to run the operations of the mine.
In 2019, the Zambian Government, through ZCCM-IH placed KCM under the provisional liquidator, citing poor management of the mine by Vedanta, charges which management at Vedanta disagreed with.
Recently, Mr. Kabuswe had asked the two parties to settle their disputes outside court so as to quickly find an amicable solution to the challenges facing the mine.
The economy on the Copperbelt is anchored on mining, and the continued operational challenges facing KCM have adversely affected mine suppliers and contractors who solely depend on the mine for survival.
Mr. Kabuswe is confident the issues surrounding KCM will be resolved now that the court cases have been suspended.
Copper production in the first half of 2022 dropped by seven percent to hit 364,937.58 metric tonnes, from 394,183.92 metric tonnes recorded in the same period last year.
Meanwhile, The government has said that it is in the process of formalizing all illegal mines countrywide in order to address the problem of illegal mining.
Mines and Minerals Development Minister Paul Kabuswe has noted with concern the increasing cases of illegal mining involving mostly small-scale and artisanal miners.
Mr. Kabuswe has advised the youth engaged in illegal mining activities to register their businesses and benefit from the many empowerment programmes being implemented by the new dawn administration.
The Minister was speaking in Kabwe during the commissioning of the rehabilitation of the Kabwe main canal aimed at addressing the health challenges caused by lead poisoning.
And Central Province Minister Credo Nanjuwa has warned individuals and some young people engaging in illegal mining activities in the name of the UPND and President Hakainde Hichilema to desist or risk facing the wrath of the law.
Sensible decision. There are intelligent people on both sides.
Working to agree things amicable is far better than a totally legal route involving lawyers.
The addition expense just is not worth it.
Vedanta must be requested to reduce their interest from 80 to 40%. 40% must be taken by another equity partner and ZCCM-IH must maintain the 20%. That will be a fair deal
Kabuswe now looks goods. Incito yasumina
Batampa Ukwina. At the end of five years ni Michelin Tyre.
This is the best route to take under the circumstances….. failing mines mean extreme poverty for our country and particularly the Copperbelt citizens and businesses…. Four years down the road,what have we achieved apart from enriching lawyers….
Well Done New Dawn….Next project Mopani….
Owe bane Tayaloku uyu. Indalama shesu balya!!
So Anil Agarwal’s charm offensive worked I wonder how many palms he greased the vile animal…people were right when they said Vandenta was coming back. Can you imagine the sly family of Anil Agarwal dialoguing with an empty tin like that in the picture? Opportunity missed by UPND ..an vile Indian like Anil Agarwal can never change…it will be back to square one Vandanta will come and promise $20 billion and deliver nothing they will just suck you dry like those Indians who have family shops in residential areas for decades but contribute nothing to the local economy not even employment for youth in the area.
Out of court will just mean one thing no transparency everything behind closed doors and more rumours, falsehoods for Fred Meembe, Sean Tembo etc to write about…this dull looking man and his equally incompetent Govt Spokeslady to publicly deny.