VEDANTA HAS FAILED TO RESUSCITATE KCM, GOVERNMENT MUST FIND ANOTHER INVESTOR TO RUN THE MINE OPTIMALLY- (AIPAC)
Lusaka… Saturday January 4, 2025
It is evidently clear that Vedanta Resources Ltd has lamentably failed to resuscitate Konkola Copper Mines (KCM) Plc and fuifil their investment commitments made prior to them taking over the operations of the mine.
We wish to remind Vedanta Resources over the promises they made before taking over KCM among them injecting over US$1 billion into KCM for mining development and recapitalization , improving copper communities through implementation of corporate social responsibility programs and creating of Job and business opportunities as well as clearing off payment to all the suppliers and contractors
We believe that if the 1billion USD was pumped into the operations of KCM, by now the mining giant would have created several jobs and business opportunities for the local people. By now, production at KCM would have doubled but it is still struggling as if there is no investor to manage the asset.
It is sad that up to date, no meaningful jobs and business opportunities have been created at the mine leaving the many youths who had hope in the asset vulnerable as they are still struggling to find jobs. It is clear that Vedanta has failed to invest in the asset as promised. Therefore, we believe that the government should start looking for another investor to run the mine as Vedanta is not equal to the task.
As stakeholders, we need to help President Hakainde Hichilema to resuscitate Konkola Copper Mine and create the much needed jobs and business opportunities for our fellow Zambians. The Head of State means well for the asset and we believe that he wants Konkola Copper Mine to make a vital contribution towards the 3Million metric tonnes copper production target per annum by 2031 but the choice of the investor is what is killing and destroying the asset.
It is critical at this moment that the government finds another equity partner to manage KCM optimally. We need to see a lot of economic activities on the Copperbelt, which will also see increased trade and commerce within and beyond the Province.
We believe that KCM is a critical national asset and the people of Zambia must benefit from it. At the moment, the mine seems as though it’s on autopilot when the government had found an investor to manage it. Vedanta has failed, hence the need to look for another investor to run the asset optimally.
Let’s not continue wasting time with Vedanta Resources who have practically failed to revamp the mine. As a country we must be in a hurry to develop our country by way of increasing productivity and earn the much needed foreign exchange and stabilize our local currency.
With the huge global demand for copper, we must up our game so that we benefit from the sale of our commodity at the international market and alleviate the high poverty levels in our country.
Our position is that KCM can only operate optimally with an another investor not the current one. We need an investor with a huge financial muscle and technical capacity to firmly manage the mine.
In conclusion, we call on President Hichilema to take a proactive action and find a proper exit plan for Vedanta Resources so that we can begin to engage another investor.
It is sad to note that with the condusive environment created by government with tax relief, Vedanta Resources is failing to increase production and revamping the mine.
We therefore call upon Copperbelt Minister and Mines Minister Paul Kabuswe to side with the people of the Copperbelt and find another investor.
Nchanga South UPND Member of Parliament Derrick Chilundika had warned us that Vedanta was a bad investor to take over KCM, now we can see what he meant. We shall engage President Hakainde Hichilema so that Vedanta should pack and leave our mining asset to pave way for a right investor with the financial and technical capacity to recapitalize the mining firm so that it can positively start contributing to the social economic development of our country.
Solomon Ngoma
Executive Director
Acton Institute for Policy Analysis Centre (AIPAC)
Mining is not as simple as many people may think. Vandator needs more time because a lot of damage was done to KCM THEN MANY PEOPLE THINK. Leave Mining to experts to develop safe mining and sustainable mining. Let’s not talk too much about mining, we failed to start the Chibuluma mine. now the 650 level has not been reached yet. up to now which was sold. This mine Chibuluma, must be run by ZAMBIANS. There is nothing difficult about this mine. KCM is not a simple Mine to run.
Very true most people who comment on mining have no idea about the business. They claim Zambians can run the mines easily yet the same Zambians have failed to run even a single one. Zambians lamentably failed to run mines under ZCCM and they failed to run Mopani and KCM when these mines were taken back by government but yet they still claim they are capable. If really they are very capable of running these mines, why have they not opened any mines up now because minerals deposits are still there around the country?
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