ONLY ONE STEP IS REMAINING BEFORE KCM IS HANDED BACK TO VEDANTA
….and production will resume, says Finance Minister
Lusaka… Friday February 23, 2024 (SMART EAGLES)
Minister of Finance & National Planning Dr. Situmneko Musokotwane says there is only one step remaining before Konkola Copper Mines plc (KCM) is handed back to Vedanta Resources and production will resume.
Delivering a ministerial statement in parliament today, Dr. Musokotwane said this should happen soon.
He added that in terms of Mopani Copper Mines (MCM), the target date for handing it over to the new investor is end February 2024.
The Finance Minister said the importance of these two mining firms is that even before they increase production, they are already sending money to Zambia, in foreign exchange, to pay local creditors and to prepare for increased production.
He emphasized that this is happening now and that these payments are supporting the Kwacha.
“Beyond this preparatory stage which is already supporting the exchange rate, we are looking forward to increased copper production and foreign exchange earnings as the two companies get to work. The effects of the return of the two mining companies is set to change things positively,” he said.
“The second leg of increasing copper production is by expanding production at First Quantum (Kansanshi) and Barrick (Lumwana). As indicated already, both companies had contemplated leaving Zambia because of unconducive investment climate under the PF government. Had that happened, almost the entire mining industry in Zambia would have closed since it would have meant KCM, MCM, FQM and Lumwana all being non-operational. The economic consequences would have been unimaginable.”
Dr. Musokotwane indicated that after the UPND government assumed office in 2021, both companies were successfully persuaded to stay.
“But their earlier decisions to leave has impacted production now because they had not developed new ore bodies in time. Both FQM and Barrick have started developing the new ore bodies and have put in $1.3 billion and $2 billion respectively to achieve enhanced production,” he added.
“Madam Speaker, the shock to the exchange rate was largely attributed to problems in the mining sector. This has been a temporal problem which this government has resolved. Going forward the people of Zambia should feel comfortable that the future is bright. On account of the mining sector alone, without considering other sectors, concrete steps will soon be visible as production towards the three million tons target takes shape. I am sure my colleague in charge of mining will at an appropriate time share the projected expansion of the sector.”
He further indicated that stability comes about because supply and demand for foreign exchange roughly balances.
“We have already discussed the supply, as we described developments in the mining sector because it is the main source of foreign exchange. The demand side can be managed by monetary policy actions such as those instituted by the Bank of Zambia. These included the withdrawal of government deposits from commercial banks to the Bank of Zambia and the increase in the statutory reserve ratios,” he said.
“Both measures have the effect of reducing access to local currency financing from the banking system and, therefore, dampens effective demand for domestic expenditure, including on foreign exchange purchases. Once again, the positive effects of the monetary policy actions are evident today.”
Moving on to debt restructuring, Dr Musokotwane expressed happiness that significant progress has been achieved.
“We all recall that there are two broad categories of external debt: the official and the private. For official debt restructuring, this was already achieved last year. All that remains is to complete the formalities which are expected to be signed shortly,” he informed the House.
“Regarding the private sector creditors, the focus of the work now is to clarify the meaning of comparable treatment of all creditors. Members will recall that as a way of ensuring that no creditor takes advantage of other creditors, a requirement exists which demands that any proposal for debt restructuring must satisfy the criteria of comparable treatment.”
Great work being done by the government and the Ministry of Finance.
Unlike the PIEFU thieves who borrowed Recklesly / carelesly including the KALOBA ( EUROBONDS) The $750 milliom, $1.2 billion and the other which i have just firgotten the figure.
The PI-EFU thieves even know that kaloba ni suicide once you don’t pay based on the agreed terms it keeps on increasing and in the end even what you had is grabbed from you. Ask us who live in the compounds were Kaloba is common and hear how many peoole have lost their assets and properties leaving their families pabondwe ( munsala nokucula) and these crooks the pi-efu knows but when they are reminded of their wrong doings they shy away from the truth and want not to be reminded. Takwaba let government continue doing their good work and also telling these crooks point blank right in their faces that this is what you did / you destroyed or damaged the economy and we ( you as NEW DAWN GOVT ) have started repairing it and never again such people ( THE PI-EFU ) be allowed near the corridors of power again – they are hardcore thieves, robberers, nindoshi ishabipa saana.
I have never seen such crooks who knows the evil they did and are doingand now, grouping to start telling and spreading lies and rumours. NO DIFFERENT FROM THE DEMONS. But God is GREAT. He is still on the thrown and protecting us.
Keeping trunks of money in the houses but still without shame and remorse are seen on anti – hill pretending to be saints while spreading their evil deads in lies.
The good thing is that in Psalms 90 verses 1 going down to 12 ( there is a limitation of how many years one will live, be strong and enjoy things; its up to 90 years after that amacushi yaisa- these crooks will not be as strong as they are today infact others are already in their 70s.
Once they start droping to the ground they will now go and meet the CREATOR The ALMIGHTY GOD. Tgey will have nowhere to run to.
Then they (You PIEFUS ) will have to account for all that they / you did while on this plannet and country called Zambia and it’s people – Revelation 20 vesers 11 through to 15. With the tag of stealing, lying, hatrade and murderer, you will explain to the owner of live.
You may be clever for a little short while here but time is coming and it will be worse for you.
MAY THE GREAT NAME OF OUR LORD JESUS CHRIST BE UPLIFTED HIGH FOREVER AND EVER AMEN
To the Glory and Honour of His Name, THE LORD JESUS CHRIST.