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Sunday, November 27, 2022

KCM Provisional Liquidator announces selection of financial advisor to search for equity partner

Headlines KCM Provisional Liquidator announces selection of financial advisor to search for equity...

Konkola Copper Mines Plc (KCM) Provisional Liquidator Ms. Celine Nair, has announced the appointment of Rand Merchant Bank (RMB) as financial advisor to the Company in the Government’s ongoing efforts to bring it back into full operation.

The appointment of RMB follows on from the announcement in June 2022 that a comprehensive search had begun for a financial advisor to assist in securing financing for its medium to long term projects. A total of 11 local and international firms were invited to participate in the tender process that culminated in the selection of RMB.

“The appointment of RMB is a major milestone in the journey towards the full turnaround of Konkola Copper Mines Plc and its subsidiaries, Konkola Mineral Resources Limited (KMRL) and KCM SmelterCo Limited,” Ms. Nair said.

Ms. Nair added that, “The Company forms part of a strategic national resource base and stepping up the search for a strategic equity partner is vital to unlocking the rich ore reserves at Konkola Deep Mine. It is also pivotal in reaching the targeted increase in national copper production of 3 million tonnes within the next 10 years – the cornerstone of the New Dawn Government’s mining policy.”

Instrumental to the growth of KCM Plc is the Konkola Deep Mining Project (KDMP), which requires a minimum investment of circa US$1.2 billion, to construct additional pump chamber facilities necessary for pumping out water and unlocking new production areas within the rich ore reserves. Other upgrades and expansions are required in the Tailings Leach Plant at Nchanga in Chingola, the Nchanga Smelter and other key assets.

“It is KCM’s focus to complete the process of securing capital as soon as possible in order to accelerate the unlocking of long-held back investments and mine development. These requirements are important to ensure growth and the sharing of benefits to strategic stakeholders, which include the Government and employees of KCM, its subsidiaries, as well as business partners and communities in KCM’s areas of operation,” Ms. Nair said.

Ms. Nair added that the appointment of RMB serves as an assurance to the ongoing management process, which is aimed at strengthening governance in KCM and its subsidiaries.

“A lot of improvements have taken place at KCM since May 2022 and the mine’s future is looking bright as we gear up to increase production as soon as bridge funding is secured, Ms. Nair said.

19 COMMENTS

    • Rand Merchant Bank (RMB) will get paid fees for doing nothing. HH has already chosen whom they want to bring to make investments. What is the point of even appointing Rand Merchant Bank (RMB). This president is running the nation like his private firm. He does not listen to advice. The finance minister looks very disconnected because every advise coming from senior economic and government technocrats is being ignored and shut down. HH is not in opposition where he run and funded UPND from his private pockets. He must realize that he is running National Assets and not his Bank Accounts.

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  1. It is now clear that KCM was never in liquidation, for you cannot appoint a liquidator to continue operations of a company.

    And now we are looking for an equity partner even.

    Looks more like a receivership than a liquidation.

  2. HH is corrupt and does not want other Zambians to own big companies like he does in the country.. He got presented with a proposal by a consortium of 4 Zambians at his community house. Three are based in UK & USA and one is based in Zambia, who have $900m, their own money so that one of these struggling mines can be run and managed by Zambians. HH is blocking the deal because he would rather bring in his foreign friends. It is a good deal that has been supported by 5 economists from 5 Banks in Zambia who are acting as advisors. What’s the point of talking about homegrown development when we deny Zambian such big aspirations in preference for foreigners?

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    • Which consortium of Zambians is this that have 1 billion dollars cash? Dont tell me its some guy who made it big from Bitcoins and he is worth $50m… Why are they hiding and going to HH’s house instead of going public on a charm offensive..you dont even know how consortium work; they are probably backed by some invisible Hedgefund.

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  3. Comments #1 – #4 are written by people who do not understand the world of finance or business.
    One of the silliest comments is “This president is running the nation like his private firm”, if business principles are used more widely across Africa, African countries would not be in their current mess.
    With HH Zambia has a change to buck the trend.

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  4. The only thing Ms. Nair should prove to Zambians in whatever she is doing is that she is patriotic to Zambia and will not use her ethnic identity to accommodate vendetta and give him back KCM. If KCM ends up in the hands of Vendetta again Ms. Nair would have betrayed the Zambians of Indian origin has people not to trust to manage national assets for the betterment of ordinary Zambian’s interest. Regardless of how PF managed the economic, their decision on Vendetta was right and legal and in the best interest of the nation. I would urge N.A.S.A to officially communicate his information to one media house like the Nation , Diggers or Mast news papers so that they publish what he/she is claiming about Zambian investors.

    • Truth – What do you want her to prove? You think she is involved in the what happens next…she is merely a Provisional Liquidator. How can she prove to the Zambians when you have already piegon holed as an Indian.

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    • What the Provisional Liquidator of KCM is doing is not liquidation.

      A liquidator does not start looking for equity partners because he or she is expected to wind up the affairs of the company.

      What is happening at KCM is a receivership rather than a liquidation.

  5. The Mines MInister is talking about bring Vendanta Resources back to negotiating table and settling outside court..then the Liquidator is talking about finding an Equity partner..stop playing people for foooools and just tell them you are bring back the Anil’s company. No one will touch KCM with Vandenta still in the picture.

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  6. vendetta dribbled Mwanawasa and got the mine at a song, tricked ECL and did not fulfill promises and did not pay tax. Now, check the current situation and think. Current situation: UPND using the rule of man replaced Lungu with Ms. Nair, an Indian; Vendetta, an Indian firm, financed UPND election campaign. This time, there is no dribbling or being trickery but joining forces to……..amano ya ba mu kutwi.

  7. This is not a liquidation. It’s more of a receivership, because the job of a liquidator is not to continue running the business.

    Now we are even seeking equity partners.

  8. Say and wish all that we desire, but a cardinal aspect remained overlooked – the cash flow effects of mining activities in Zambia since 2000!
    Zambia over liberalised its mining financial regulation, the freeing of banking of mineral proceeds, away from Bank of Zambia

    Zambia must must require all Export Proceeds to be banked home!!!

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