GOVT CALLED UPON TO ACT FAST ON KCM
…. failure to do so may lead to the eventual death and closure of the mine, laments a Chililabombwe resident.
Chililabombwe… Tuesday December 6, 2022
A Chililabombwe resident has appealed to government to quickly resolve issues at the Konkola Copper Mines (KCM).
Speaking when he featured on Rise FM radio programme, Chishala Mwamba notes that failure to act soon, this may lead to the eventual death and closure of KCM.
Mr. Mwamba laments that unemployment levels are at there highest in KCM host communities, everyone including marketeers have felt the pinch.
Mr. Mwamba has also lamented that KCM liabilities have tripled to over US$2.4 billion from the US$786 million that Vedanta left in 2019.
He notes that supplier debt has risen from $220 million in 2019 to over $770 million dollars.
Mr. Mwamba further notes that KCM is the biggest strategic national asset that Zambia has and that keeping it dormant is tantamount to killing the economy.
Mr. Mwamba says KCM is failing to pay contractors with some sending hundreds of their workers on forced leave.
“It seems simple to the people outside Chingola, Chililabombwe and Nampundwe as to how far KCM has gone down. Since Vedanta was illegally ousted in 2019, over 7000 jobs have been lost. KCM Capacity to finance production has dwindled with government assisting them in collecting $15 million dollars from Eco Bank to finance their production recently,” he said.
“KCM Production has dropped by 65%, i.e. from 7.2 killotonnes per month under Vedanta to just about 2.7 killotonnes. Zambia’s copper supply at the Global stage can do better with a fully operational KCM.”
He stated that no alternative investor is willing to invest in KCM owing to the legal squabbles surrounding it.
“Therefore government risks compensating Vedanta over $3billion dollars if things are not resolved soonest and amicably. Vedanta invested over US$3billion in KCM and are willing to invest an additional US$1billion+ dollars in order to recapitalize the asset. Ours should be to negotiate for better conditions of operations,” he added.
Mr. Mwamba indicated that if the issue is treated with political gloves, it’s not the President, the PF or the Mines Minister who will suffer but the common people of Chililabombwe, Chingola, Nampundwe and Zambia at Large.
“As a community, we strongly call for quick action to be taken on this matter in order to curb the rapidly increasing poverty levels in our communities,” he concluded.