ITS ALMOST DAWN
…. for KCM to start operating optimally, observes Jere
Lusaka… Monday June 24, 2024 (SMART EAGLES)
The Zambians for Unity, Peace and Development (ZUPED) says it is almost dawn for Konkola Copper Mines Plc to start operating optimally.
ZUPED President Ronnie Jere says this follows the agreement between the investor Vedanta Resources and KCM through the scheme of arrangement.
Mr Jere said KCM under Vedanta, has the potential of employing over 12, 000 employees hence the need to support their comeback at KCM.
“We have been following through the process. As you maybe aware the scheme of arrangement was agreed upon and I should mention that the scheme is the agreement that the creditors that are owed by KCM that they have agreed with Vedanta to settle them and they will take the matter back to court based on what they agreed upon. What is happening is that last month we had creditors sitting down with Vedanta where they agreed on how they will dismantle the arrears of what KCM owes them. The first meeting was on 24th May, 2024 those owed less than US$1 million then on the 30th it was for those owed over US$1 million. What has happened is that that scheme of arrangement has been submitted before the courts and we are hoping that between now and month end of June this issue would have been resolved including in the courts,” he said.
“After that, then Vedanta will get that US$250 million which they promised the people of Zambia to pay the creditors. Now it’s almost Dawn. We are happy that Vedanta Resources has continued to commit themselves even now saying that they are going to fulfill that commitment and that the money is available.”
Mr Jere said his organization is now waiting for the outcome of the court process after the agreed scheme of arrangement was submitted.
“We are just waiting for the outcome of the court process. According to the Minister of Mines, he mentioned that by 30th of June, 2024 they should have concluded everything and hand over KCM to Vedanta Resources by July,” he added.
“We are excited because we have been championing this cause for more than a year now because we understand what value the mine will bring to Zambia’s economy. Immediately KCM begins to operate fully, what is going to happen is that KCM has the potential of employing over 12, 000 employees. Right now it is struggling to maintain the 3, 000 workers in terms of salary payments. We have heard of some contractors engaged by the firm who are closing and relieving their workforce because they have no capacity as they are not paid.”
He hoped that even as KCM starts to operate fully, they should see foreign exchange coming into the country to help stabilize the local currency as it has not been performing well lately.
“Kwacha has lost value which is impacting negativity on GDP and the economy because there is no enough forex,” he concluded.