THE OUT OF COURT SETTLEMENT OF THE KONKOLA COPPER MINE INVESTMENT STANDOFF
Lusaka… Wednesday September 6, 2023
The Inter-Africa Governance Network (AFRINET) welcomes the handing over of Konkola Copper Mine to Vedanta Resources Limited by the Government of the Republic of Zambia making the long anticipated resolution of the Government – Vedanta standoff that protracted since the takeover of the mine by the previous administration of the Patriotic Front in 2019.
AFRINET, a dialogue platform in the Social, Economic and Political governance arena of public life is extremely pleased that the standoff has been brought to a logical finality in the interest of optimum production at the mine.
In this regard AFRINET commends both the Government administration of President Hakainde HICHILEMA and the collective management of
Vedanta Resources Limited for the decision to resolve the standoff through an out of Court settlement, the decision has saved time and resources on both parties.
As such, going forward both the Government and Vedanta Resources Limited have learnt some lessons regards the need for mutual dialogue because out of this standoff none of the parties has benefited, on the contrary both have undeniably lost revenue.
As AFRINET we are confident and expectant of the positive impact on both the Copperbelt and national economy the commitment of Vedanta Resources Limited to its investment expansion through the capitalisation of Konkola Copper
Mine to the tune of US$ 1 Billion over a stretch of one year, US$ 220 Million payment owed to contractors and suppliers, 20% salary
increment to the employees across the board, the retention of 10,000 direct workers and the US$ 20 Million annual expenditure on Corporate Social Responsibility.
Lastly and more importantly, we commend the Mines Unions of Zambia, Mines Suppliers and Contractors Associations and other relevant stakeholders for holding the patience of the affected workers and the communities Konkola Copper Mine is operating and further urge them to collaborate in the quick return of Konkola Copper Mine to optimum productivity.
Furthermore, AFRINET implores the relevant stakeholders to exercise some patience, flexibility and Industrial harmony towards the Zambia Consolidated Copper Mine Investment Holding and Vedanta Resources Limited as they collaborate in the actualization of their individual commitment and obligation in returning Konkola Copper Mine to full production.
MAURICE MALAMBO
EXECUCTIVE DIRECTOR