More contradiction
Govt seeks external advice on KCM
By Ernest Chanda
STATE House says government is seeking advice from external experts over Konkola Copper Mines (KCM).
On April 29, 2022, sources told The Mast that government had lined up a team of external experts to advise it on the future of KCM.
Sources in government said President Hakainde Hichilema had lined up Valentine Chitalu, Greg Mills from Brenthurst Foundation, and Andrew Chipwende among others, all non-government individuals who had been tasked to negotiate with Vedanta Resources Limited on KCM.
We sent press queries to President Hichilema’s spokesperson Anthony Bwalya and all other named parties.
However, only Bwalya and Mills responded, with the latter responding within minutes of receiving the query.
“Ernest: Thanks for your note. I do not have anything to do with these negotiations,” responded Mills.
Later in the afternoon, this journalist received an unsolicited phone call from mines minister Paul Kabuswe who said he had been informed by Chipwende about the press query.
Kabuswe inquired why this journalist did not contact him first, but was assured that he was definitely going to be contacted at a later stage.
He denied that such an arrangement was there, adding that the nation would have been informed if it had indeed taken place.
“There is no one appointed to advise government on KCM. Absolutely no one. If government had made such a decision definitely the nation was going to be informed. That is the procedure,” said Kabuswe.
In his response, Bwalya confirmed seeking external advice, adding that the government believed in wider consultation.
“We can confirm that we are seeking third-party advice from external experts in relation to KCM. As a government, we believe it is sensible to consult widely and draw on existing expertise regarding such matters, and that this gives us the best possible chance of resolving the current situation in the most positive way possible,” he said. “It is important to note that government is the one with the mandate and authority to ultimately make the decisions relating to the path forward, and that government is not obligated to act on the advice given. The main activity at this stage has been to assist in defining and carving out a process for KCM, a process that is credible and transparent for stakeholders and investors, particularly our citizens. The process itself would be run by ZCCM–IH and the liquidator, with support of an international merchant bank. This structure is common all across the world for major transactions, including mines.”
He said people would judge the government’s performance on the mining sector based on the outcome of its decisions.
“On KCM and the mining sector more broadly, we ask people to judge us on the basis of our results – how many jobs we create, and how much revenue we generate that can be re-invested in public services and other social sectors,” said Bwalya.
“We reiterate our commitment to delivering a solution for KCM that benefits all people of Zambia. KCM remains a Zambian asset and our role as government is to unlock its potential so as to deliver the maximum benefit to the people of Zambia.”
Recently, addressing the first quarter media briefing at State House, President Hichilema said his government wanted provisional liquidator Milingo Lungu out because he was standing in the way to a resolution on KCM.
“Don’t demonise the very thing you voted for. There’s no deal. Yes, we want Milingo out of KCM. It was wrong to have him as liquidator. Criminality was occasioned in there. We want a solution in KCM so we can ramp up production, three million tonnes of copper. We want solution at Mopani. The licence for KCM is to mine a natural resource. We won’t let KCM sleep in limbo. Why should we give immunity to somebody? If anyone offered Milingo immunity, they are on their own? We believe our courts are competent and will discharge their duties to the nation. The Judiciary, Executive and Legislature, we all work for the people. Milingo was standing in the way of a solution to KCM. We never agreed with Milingo’s appointment [while] in opposition. We never agreed with what he was doing there when we formed government. It’s not a secret, it’s I public domain,” said President Hichilema. “We have been doing a lot of measures, that’s why you hear the noise from the liquidator of KCM because he was sitting in the way of resolving the KCM problems. The rest I will not say much.
To unlock KCM, Mopani, we believe…Mopani we are very close. I don’t want to be over ambitious. Part of my character is self-restraint. Part of my character is to say less and do more. That’s how I was brought up. We are very close on Mopani. It’s an easier asset to unlock, so we are getting there. I think soon you will hear the progress we have made. KCM is a bit complicated. It was made complicated by appointing a liquidator who should have never been there in the first place. So, we are trying to remove that challenge, that constraint so that we can now recommence a solution to KCM. When KCM is unlocked, it benefits our citizens. It benefits suppliers, it benefits revenue. It benefits foreign exchange income. We have an asset which is being abused there, and we are determined… let me say it here; we are determined to do what it takes to bring that asset back into production. And we will do what it takes. No innuendo, no abuse of court process will slow us down.”