By Amb. Emmanuel Mwamba
Grand Criminal Decisions Repeated
In September, 2002 Anglo American announced a shock divestment and withdrew as shareholders of KCM, leaving a restructured company whose main shareholders were government entities, ZCCM-IH and ZCI.
As usual instead of trusting ZCCM-IH to invest and ran the mine, Government put the mine up for sale.
In 2003,Vedanta Resources bought a mine valued $650million for $25million and became majority shareholders with 51% shareholding.
At the time of the transaction, KCM had copper cathodes for exports at sea and in transit worth over $76million.
The shares were valued at US$650 million as evaluated by the investment bank N. M. Rothschild & Sons and the London law firm Clifford Chance as consultants – both outfits brought in by the World Bank.
Within a period of 3 months, Vedanta declared $26million profits.
In 2008, Vedanta Resources increased its holding in the company to 79.4%.
There are considerable opportunities for future
development at KCM, including the world class Konkola Ore Body at Konkola Deep Project with resources of 210 million tonnes containing copper at 3.8% valued in excess of $200billion!
For twenty years, Vedanta proceeded to declare losses, engaged in mining processes that devalued the assets, accumulated significant utility debts and owed suppliers and contractors millions of dollars.
During the same period, Vedanta grew exponentially acquiring new assets across the world.
Government has announced that it is returning KCM to the rogue investor despite the chequered record.
This is a decision arrived at only motivated by corruption.
Further Zambia’s resources will continue to be exploited without any significant economic and tangible benefits to the country and will proceed to make billionaires to those involved.