By Amb. Emmanuel Mwamba
What’s motivating Govt to give Vedanta back?
Vedanta Resources, owned by Indian billionaire Anil Agarwal, said it has reached an “advanced stage” of executing agreements with the Zambian government over Konkola Copper Mines Plc assets that have been in provisional liquidation since 2019.
Throughout its existence at Konkola Copper Mine, Vedanta has been reluctant to pay taxes.
Since 2003, It has consistently declared losses because of tax evasion and avoidance.
At the time of liquidation: KCM’s debt had exceeded UU$2.5bn; developments at KDMP had stalled; underground operations at Nchanga suspended, while the open pit was operating at very low capacity; the smelter was not running at full capacity due to lack of concentrates.
Vedanta failed to run KCM: profitably and technically; it failed to pay taxes; offer decent employment to its workers; pay contractors; repay its loans, and prevent pollution from affecting poor communities.
The government’s efforts of reviving the company by providing it with a Business Improvement Plan (BIP) to increase production from 132,318 tonnes of finished copper in 2013, to 178,994 tonnes by 2017 were frustrated by Vedanta’s failure to fulfill its commitments resulting in a further decline in production to 86,585 tonnes.
VEDANTA RESOURCES IS BROKE!
The company had a net debt of $9.66 billion as of 31 March 2022.
The woes of Vedanta began when rating agency Moody’s in October last year downgraded London-based holding company Vedanta Resources, raising concerns over its ability to refinance debt.