Chief Government Spokesperson Dora Siliya has indicated that government’s decision to liquidate Konkola Copper Mine – KCM should not be politicized as it is meant to find an equity partner to take over the mine and invest in the country’s economy.
Responding to a question during a press briefing at Lusaka’s government complex on June 4th 2019, Siliya said the move by government on the liquidation of KCM is a reflection that the mine was facing challenges in finances hence the need to address the matter.
She disclosed that copper was being sold at the mine but Vedanta had no money to pay its employees saying the situation attracted attention over its operations and government had to come on board to find solutions that will benefit Zambian workers, contractors and the nation at the mine.
Siliya further indicated that assets at the mine will not be sold as they belong to the people of Zambia saying government only wants to change a business partner to continue running KCM and get dividends to invest in other sectors of the economy.
“If KCM was doing well, why was there no money in the account to pay salaries to its workers, to pay local contractors etc and yet copper was being sold every day? Sometimes we reduce everything to politicking but we have to see through this noise and note what is really happening because if the mine was really doing well they should be money sitting in the account but the fact that money is not there, government will come on board and make sure that the takeover of KCM is done on behalf of the people of Zambia because challenges were there,” she said.
She added that speculations from the public stating that KCM will be taken over by a Chinese investor are not true as government stands at seeing the mine benefit Zambians adding that the liquidation process has not come to an end hence people should allow the matter get to its conclusion before making any comments.
The prospective equity partners are now undertaking the due diligence process. The companies that have so far expressed interest are from Canada, China, Turkey, Switzerland among others. President Lungu had announced that the new equity partner is expected to be announced before end of July, 2019.
KCM was owned by Indian mining group, Vedanta but relations with Zambia soured after the Chairman was recording claiming that he duped the then Zambian Government to buy the mine cheaply. He further went on to claim that he made millions of US dollars but the mine at the same time was always late at paying salaries and contractors.
Vedanta-KCM social responsibility was also questionable as even the two football team that were sponsored by the mine, Nchanga Rangers football club and Konkola Blades football club remained under funded sparking loss of confidence even from the local community.
