The Association of Mine Suppliers and Contractors says there is need for government to negotiate and withdraw the case involving Konkola Copper Mines (KCM) and Vedanta Resources from the courts of law so that government can timely re-arrange the operation of the mine.
Outgoing Association of Mine Suppliers President Augustine Mubanga said government needs to sit down with Vedanta Resources and find an amicable solution so that it can look for an equity partner or an investor who can take up the investment portfolio that Vedanta will leave adding that that will require capital injection in order to transform the way KCM is operating.
Mubanga said Vedanta has lost its social license meaning it is not welcome, noting that even if it was given back the mine, it would be a waste because workers are dissatisfied with how it operated the mine.
He further said the community does not want to see Vedanta back adding that the business community who were left in huge debt and have not been paid until now are still grappling in debt, some have lost property and assets, and that is due to how Vedanta operated the mine.
He said Vedanta needs to renegotiate their way out quickly and let a fresh investor come and begin to invest in the mine in order to increase production because even if they came back, they would be operating in a hostile environment such that they cannot recoup their investment.
“We need to engage Vedanta, we need to bring them to the table, we are not saying we are handing the mine back to them, remember that Vedanta has lost its social license with the people of Zambia. What we want is them to come, we agree to disagree for them to exit the operations in a more amicable way”, he said.
Speaking in an interview with the Zambian Business Times – ZBT, Mubanga emphasized the need to resolve the issues surrounding Konkola Copper Mines Plc (KCM) in order to realise the projected increase in production and get Chingola and Chililabombwe towns economies back on track.
He said KCM is currently operating at 20% of its capacity therefore the need to invest more in the mine in order to open up development so that production is increased and all the other benefits will begin to accrue adding that increasing production also means revenue in the government coffers will increase.
He noted that KCM is a mining giant projected to directly employ more than 30, 000 people once recaptalised, therefore resolving the issues surrounding KCM will bring about benefits such as employment and business opportunities that would be created because of the investment injection.
He mentioned that the recaptalisation of KCM will increase production, increase business opportunities and social welfare of communities where KCM is hosted, the Mine towns will begin to improve in terms of corporate social responsibility and the local economy will improve.
Finance Minister Situmbeko Musokotwane has announced that government will make its way forward known in the next one week. But there are fears that the new dawn government may hand back KCM to Vedanta against the wishes of the local business and mining communities.
