AIPAC Raises Concerns Over Vedanta’s Financial Capacity to Operate KCM
Lusaka, Zambia – Acton Institute for Policy Analysis Centre (AIPAC) expresses deep concern regarding Vedanta Resources’ financial capacity to manage Konkola Copper Mines (KCM) effectively.
Despite assurances, Vedanta’s actions raise doubts:
- Announced $245 million to pay debts to suppliers and contractors in July
- Only four entities received payments, leaving over 646 contractors and suppliers unpaid
- Failed to meet promised payment deadline of August 1
Consequences:
- Suppliers struggle to pay workers, with some employees unpaid for over six months
- Exacerbating poverty among affected families
Unfulfilled Promises:
- $1 billion commitment for mining recapitalization remains unmet
- Skepticism grows about Vedanta’s ability to revitalize KCM assets
Call to Action:
- Engage another equity partner to operate KCM
- Ensure mining asset contributes to national socioeconomic development
- Partner with trustworthy investors, considering Vedanta’s poor mining track record
AIPAC urges President Hichilema’s government to take decisive action, prioritizing Zambia’s interests and socioeconomic growth.
issued by
Solomon Ngoma
Executive Director
Vedanta’s financial woes were well known even before they were given back KCM, which rightly belong to them.
Depending on the agreement with the government, if they fail to ran KCM properly, the government should repossess it legally and quietly, using brains not brawn like PF did.