KCM BEGINS PAYMENTS TO CREDITORS UNDER NEW SCHEME, STARTING WITH COPPERBELT LOCAL AUTHORITIES
Konkola Copper Mines Plc (KCM) has officially commenced payments to local authorities and other creditors under the newly implemented Creditors’ Scheme of Arrangement. This development marks a significant step in addressing the financial obligations owed by the mining giant, with initial payments being directed to the Copperbelt local authorities.
The Minister of Mines and Mineral Development, Paul Kabuswe, has commended President Hakainde Hichilema for his good governance, which has facilitated this progress. He thanked Zambians for their patience and resilience, acknowledging their support for this noble cause. Kabuswe highlighted that the payment of K50 million to three councils is a testament to President Hichilema’s goodwill and commitment to resolving the financial challenges faced by KCM.
KCM’s Chief Financial Officer, Manish Saxena, emphasized the importance of prioritizing and collaborating with local communities, whose land hosts the mining operations. Saxena stated that KCM’s commitment to paying its Class 1 and Class 2 creditors is expected to positively impact the financial health of various local councils and businesses that have been awaiting their dues. He pledged to expedite the payment process in accordance with the guidelines set forth in the Scheme of Arrangement, ensuring that all creditors are compensated without unnecessary delays.
As one of the local councils receiving payments from KCM, Chingola Municipal Council Town Clerk Mrs. Namukolo Kalufyanya expressed gratitude for prioritizing local authorities in the creditor payments. She noted that the revival of KCM translates into a revival of economic activities for Chingola, marking the start of a new chapter. Kalufyanya emphasized that a significant part of the Chingola Municipal Council’s operations is based on KCM, and the prompt payment of all outstanding dues is crucial for retirees, statutory obligations, and service provision.
Mrs. Kalufyanya further thanked the government for unlocking KCM’s potential and assured transparency in the disbursement of funds. She emphasized that these funds are intended for the benefit of the local community, ensuring that the economic revival is felt across Chingola.
KCM has paid the Chingola Municipal Council Twenty-Six Million Eight Hundred and Nine Thousand Five Hundred and Fifty-Three Kwacha (K 26,809,553), the Chililabombwe Municipal Council Eight Million One Hundred Eighty Thousand Two Hundred Ninety-Eight Kwacha and Eighteen Ngwee (K 8,180,298.18), and Kitwe City Council Fourteen Million Nine Hundred Fifty-Eight Thousand Six Hundred and Fifty-Three Kwacha and Ninety-Six Ngwee (K 14,958,653.96), respectively.
This milestone marks a pivotal moment for KCM and its parent company, Vedanta Resources Limited, as they work to fulfill their financial obligations and strengthen relationships with key stakeholders. The payments are seen as a critical step towards stabilizing the financial ecosystem of the regions affected by KCM’s previous financial difficulties, setting a positive precedent for future operations and collaborations.
TF
