KCM INCREASES PRODUCTION TO 8,000 METRIC TONS
…… safeguarding 12,500 jobs, reviews Dr Banda
Monday January 6, 2025
Konkola Copper Mines (KCM) Plc has increased production to 8,000 metric tons, thereby safeguarding 12,500 jobs.
KCM Board Chairman Dr. Moses Banda says when Vedanta Resources assumed management in August 2024, the business was under care and maintenance.
Dr. Banda said it is gratifying to note that employees received their 20% salary increment, and the once off bonus further the employees have been receiving their monthly salaries on time without any hindrances.
“In addition to supporting our employees, we have also made significant payments to our creditors. We made a payment of US$250 million to our creditors. This was paid to the scheme creditors by Vedanta which is being paid as per the process of the Scheme Administrator. All the scheme class 1 creditors have been paid in full and first tranche to scheme 2 has also been paid. In cases of a dispute these are being handled by the Scheme Adjudicator,” he said.
He said the payments are a demonstration of the firm’s commitment to meeting the financial obligations.
“Vedanta has pledged to spend US$20 million annually under the KCM Community Development Trust. Notable initiatives include:
– Integrated Livelihood Project: A US$1.8 million project benefiting over 18,610 people, aimed at reducing rural poverty and household food insecurity.
– Roll Back Malaria Programme: Targeting 65,000 households, requiring US$615,000 in
resources.
– Leather Cluster Revamp: Equipped at a cost of US$120,000.
Our sports development initiatives have also gained momentum, with KCM providing
grants to various sports disciplines, including rugby, golf, netball, volleyball, and rackets,” he highlighted.
“Additionally, we have purchased buses for three football clubs, nurturing talent and careers for young people. Our procurement investment of goods and services is over K2.2 billion kwacha in the last 5 months reinforcing our dedication to empowering Zambian businesses, stimulating economic growth, and supporting entrepreneurship, with 90% of procurement spending allocated to local suppliers and contractors.”
Dr. Banda further said at the close of 2024, Vedanta Resources Limited was upgraded by S&P rating to B, reflecting funding flexibility, enhanced capital market access, and improved capital structure.
He explained that this upgrade, combined with similar upgrades from global rating agencies CRISIL and ICRA to AA ratings, has solidified Vedanta’s position as a competitive global mining giant with a strengthened credit profile and improved financial flexibility.