Tuesday, June 18, 2024

Vedanta grabs back its KCM, promises to pump in one billion US$ investment

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Government through the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) has made progress in concluding the impasse regarding the Konkola Copper Mines (KCM).

The differences that had taken over two years has seen one of the country’s mining giants bringing its underground operations almost to halt.

The negotiations which include legal issues are expected to be concluded within three months before KCM can resume full operations.

Vedanta Resources has announced a new one billion United States dollars additional investment for the next five years to be used for paying creditors, 20 percent salary increment and investing in Social Corporate Responsibility among others.

Minister of Mines and Minerals Development, Paul Kabuswe announced at a media briefing in Lusaka today that progress had been recorded towards concluding negotiations to restore back full operations of KCM.

Mr Kabuswe explained that the government is committed to unlocking the potential of the mining industry in contribution to the economic development of the country.

He said it was against this background that the government was concerned that the impasse that surrounded the mining company that started in 2019 resulted in legal disputes.

He announced that ZCCM IH, Vedanta and government have since reached an agreement for Vedanta to return the majority shareholding in running KCM and resuscitate the operations of the three mines on the Copperbelt Province and that all cases before the courts have been dropped.

The Minister stated that the government has always opposed the liquidation route as a way of resolving the impasse that was faced at the mine.

Mr Kabuswe further said instead the government supported an amicable way which is going commercial in addressing the issues with the operators, for the benefit of all the interested stakeholders and the Zambian people.

He further explained that contrary to speculations that Vedanta has been given back to operate KCM, adding that the truth is that Vedanta never left but only halted its underground operations due to the disputes that were in the courts of law.

He also advised Vedanta to ensure that it starts on a new path and fulfill all the aspects of the agreement which is more centered on improving the welfare of the workers and communities in which the company operates from.

ZCCM IH Board Chairperson, Kakenenwa Muyangwa announced that negotiations for Vedanta to start full operations have advanced and are expected to be concluded within three months, after ensuring that all the agreed processes have been put in place.

Mr Muyangwa noted that among the agreed requirements is for the firm to improve its working operations, enhance its sustainability measures and operate its assets as a world class company thereby contributing positively to the country’s set target of three million copper production annually.

He added that both ZCCM-IH and Vedanta resources have agreed to withdraw all legal cases, and Vedanta will take over the management of KCM and the board will be reinstated.

And Vedanta Senior Manager Pushpendra Singla described the decision by the government as a millstone in the process of resolving all the disputes between parties.

Mr Singla said Vedanta Resources is ready to play its part in contributing to the government’s vision of attaining three million tonnes copper production every year for the next ten years.

And both the Mine Workers Unions and the Association of Mine Suppliers and Contractors of Zambia have praised the government for resolving the dispute with the mining company and outside court, stating that the decision will go a long way in uplifting the living standards of people in the three towns that the company operates from.

In 2019, KCM was placed under liquidation for allegedly breaching environmental and financial regulations.

25 COMMENTS

  1. We knew HH and his ministers would bring Vedanta back since they discontinued the case. We were awaiting this announcement.
    Whilst I, uncle Spider, prefer that another company should have taken over, we await with baited breath to see how compliant this company will be.
    Alas, also knowing auntie HH and how he already privatised FQM, I would not be surprised if the next thing is that government gives up shareholding in the mine due to ‘logistical issues’.

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  2. US$100,000 campaign funds to a political party was enough to bring back Vedanta. Shame! But why were they beating about the bush?

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    • 1. HH has traded in the suffering of Zambians at the cost of letting these bandits run, scot-free. He has cowardly failed to do right thing for ordinary Zambians, especially those in the copperbelt. He knows this, deep down in his heart. We said this from the start based on tangible facts, but praise singers called us names. They believed the notions that HH was to bring in new owners from friendly western nation. We hoped for that. But we also knew that he was being held with a gun pointing to his head. In the end the mines were given back to the mafiosos. So who were the “new” investors that the mines minister pronounced two months ago.? Surely, you cannot say new investors when referring to current owners.

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    • 2. No one dies from a snake bite. It’s the venom that stays in your immune system that kills you. The president has been bitten by a snake for his own making, because he went to bed with a snake while in opposition. From now own, this venom will stay with him, keep weakening his immune system, just like a shadow follows everyone, wherever they go. Once you are involved in a corrupt deal, your partners can always return back asking for more corrupt deals, because they know you cannot turn against. Else, you go down too.

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    • 3. The legal impasse is an excuse. Vendetta has committed so much grave crimes. If at all GRZ was scared of being sued by Vedanta, they could have filed a counterclaim litigation to address the issues alongside the original lawsuit. The 21 grave crimes Vedanta has committed are too enormous. In any country where there is rule of law, when a company cooks books & intentionally dodges taxes, that’s the end of it. You either pay huge financial consequences or ramifications or you get closed down. We know, facts and evidence are that Vedanta has been scared of 1. Criminal-Cases and 2.Civil-Cases that would amount to hundreds of millions or billion of $Dollars. These facts and crimes are there, easily to prove them.

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    • @ INDEPENDENT OBSERVER

      You now its impossible to come out of this situation……
      There is no way out but to give the mines back to the owners.

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    • Spaka

      I thought you were against this move. That said, there is always a “way-out” for a determined person. Setbacks just mean, learning curves and growth.

      It was once impossible to go to the MOON, or to build a CAR, TV, RADIO, RADIO, to fly an object like airplane because of The-Law-of-Gravity. The minute you say there is “no-way-out”, it means; you surrender to self-defeat and you remain poor. You shut down dreams, creative source, aspirations and belief. And that’s the problem with the richest continent in the world with natural resources called Africa. We are dealing with Vedanta that has committed serious tax avoidance crimes in the history of Zambia.

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  3. The mine is given back to Vendetta because there were no other investors, really? Lest we forget the KCM issue was before the courts of law so how do you expect the mine to be given to another investor. This was a done deal a long time ago. My prayer is that this time around the chap Agrawal is not just sweet talking…. which is most likely.

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  4. Bloomberg is reporting that Zambia has agreed to end legal action against billionaire Anil Agarwal’s Vedanta Resources Ltd. as President Hakainde Hichilema seeks to revive mining output in the southern African country.

    May 2022

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  5. Given back????
    Vedanta has always been the owner of KCM with 80% shareholding.
    Just because ECL and the PF paid off some local judges to illegally put KCM in liquidation does not mean Vedanta lost its control.

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    • Ati owner, these mines belongs to Zambians and not Indians imwee. just because some foolish chap sold the mines doesn’t mean they belong to them. who is suffering currently, Indians or Zambians.

    • The minerals upon which the mines are based belong to the Zambian people, and not to these Indians that don’t even care about us. The fact that this mining company was evading paying taxes, automatically disqualifies them from owning anything in the country. Why are we Africans so stup1d? Why you call fake foreign investors the rightful owners of your resources? You think you can start a company in India, evade paying taxes and get away with it? No way. Wake up!

  6. The problem with most of us Zambians is that we are too lazy to read. Even straight forward things end up being negatively debated because of basing our argument on hearsay. Look at the agony we caused for not only the people of Chingola but Zambia as a whole. For once lets us agree that there was no other easy way of dealing with the KCM issue. This is positive for us all provided open our eyes to avoid previous pitfalls.

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  7. Uncle Independent, majority of comments seem to say bring back, not give back.
    The comments, in my humble view as you senior uncle, are about the government trying to mislead us that they were looking for another investor when we have known all along that Vedanta would be back.
    Right here on this platform many of us stated that Vedanta would return but the government kept trying to lie to us about the issue.

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  8. Just an observation. Vedanta was not paying suppliers and creditors so how sure are that they are going to pay this time? I hope the legal group of Upnd have included such clauses within the four corners of the contract. Otherwise prepare for countless excuses from ba mwenye.

  9. Lusaka Times why is this news…Lungu mentioned it way back during campaigns the supreme leader Ayatollah Hakainde Hichilema demanded US$300 000 kickback….and soon Vedanta will be mocking Zambians once again….@TIKKI and Spaka am planning to invite both of you to my house for Christmas so that you can take your mind off HH during holidays

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    • Are you guys referring to the bribe mentioned by lungu ???

      Is this the same lungu by any chance who told us UPND were training milita to attack zambia ?????

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  10. All because h+h lied.
    Lies lies lies lies lies.
    Whooops lies!
    $100,000 was pocketed.
    The indian can now mocks more. Akaso nsamwa!

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  11. @ Spaka and TIKKI
    During PF you guys didn’t like Vedanta including the Supreme leader Ayatollah Hakainde Hichilema but he was caught solicit ing for bribes and promised Vandeta a return to the mines once UPND is voted in power…HH will end up as the most useless and corrupt President in Zambia since 1964

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    • ……

      And you belive lungu about HH getting bribes….?????

      You are naive.

      Ofcourse I still don’t like vendetta , but those international Indians are not du.ll………

      I’m afraid they had zambia cornered

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  12. Please just put KCM on the Lusaka stock exchange. We can own it ourselves as Zambians. We’ll pay tax and be honest. Let the government be a minority shareholder with no controlling shares. Let business minded people make us money.

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