
Konkola Copper Mines Plc (KCM) has said that is has not yet received any information formal communication from the Government of Zambia, in particular, the Head of State President Edgar Lungu or the Minister of Mines Mr Richard Musukwa on the decision regarding the future of KCM.
In a statement released to the media , the company said that it has made urgent effort to to seek a meeting with the President and the Minister of Mines, but have not been successful.
Over the weekend, President Edgar Lungu announced that Government will disengage with KCM saying he would not allow Zambia to be blackmailed or arm twisted by mining investors as the country was still ripe for investment.
He said Government had resolved to part with KCM and would invoke the legal process to that effect.
The President assured that Government would follow the due process of the law in disengaging with the KCM investor, Vedanta Resources.
“We have been taken for a ride by some of these investors. So I am here to announce that Government is divorcing KCM,” President Lungu said.
And Mines Minister called on KCM Workers and all Zambians to be Vigilant, to Protect the company Assets. Mr Musukwa told the media on the need for Konkola Copper Mines employees and all Zambians, considering “the current situation”, to be vigilant and protect the Assets at the mining Firm.
“For a long time now, as a survival plan, the mining house has been involved in the process of selling some scrap and equipment. We got a report from our people on the grou. And to that effect, arising from this situation, we are calling on the workers and our people to remain vigilant and ensure that such activities with this situation, must NOT be entertained,” said Mr Musukwa.
Konkola Copper Mines (KCM) is one of Zambia’s largest copper producers, with mining operations in Chingola, Chililabombwe, Kitwe and Nampundwe. KCM is a subsidiary of Vedanta Resources plc (“Vedanta”). The Zambian state-owned ZCCM-IH holds a significant shareholding (20.6%) in KCM also. Since 2004, KCM has invested more than $3billion to upgrade and expand company assets. Today it is of the largest private sector employers in the country and maintains one of the most comprehensive corporate social investment programmes
Below is the full Statement from KCM
Konkola Copper Mines Statement
Chingola, 20 May 2019: Konkola Copper Mines Plc (KCM) is aware of media reports, quoting the President of Zambia, Mr. Edgar Chagwa Lungu, in respect of a decision regarding the future of KCM.
KCM is yet to receive formal communication from the Government of Zambia on this, although it has sought an urgent meeting with the President and/or the Minister of Mines.
The intention of KCM and its primary shareholder, Vedanta, is to continue to engage with the Government in a constructive and transparent manner. The Government, through ZCCM-IH, is a direct and critical shareholder of KCM and its representatives who are on the KCM Board are fully apprised of and are party to the circumstances of the company and major decisions that have been taken.
Vedanta is a long-standing investor in KCM and in Zambia, having invested over US$3 billion since the acquisition of this asset. The company employs nearly 13,000 people at its sites and operates clinics, hospitals and schools through its corporate social responsibility programme that amounts to over $210 million since 2004. The company is yet to receive a positive return on this investment while, on the other hand, taxes, duties, fuel and power costs have risen exponentially among other issues, thereby placing an enormous and unaffordable burden on the company. The most recent restrictions and duty on concentrates has negatively impacted the running of the smelter and the much needed acid to run its operations. KCM has contributed over $1.4 billion to the Zambian Exchequer since acquisition and continues to be the leading Pay as You Earn contributor in the country.
KCM is seeking to meet with the Government as a matter of urgency to discuss the future of KCM and the impact that the current onerous situation is having on the company, the people of the Copperbelt and the Zambian people as a whole.
Eugene Chungu
General Manager, Corporate Affairs.