The mining industry in Zambia has been a significant contributor to the country’s economy, accounting for a considerable portion of the country’s GDP.
However, recent events have raised concerns about the government’s role in the industry. The Zambian Government, which owns a 20% stake in KCM through ZCCM-IH, recently signed an agreement that restores the Indian company’s ownership as the majority shareholder of Konkola Copper Mines – KCM.
Mining Expert however has questioned the government’s failure to increase its shareholding in Konkola Copper Mines – KCM, one of the country’s largest copper mines, which is questionable about its commitment to the industry.
KCM is still majority-owned by Vedanta Resources, a multinational mining company based in India while the Zambian Government though the state-owned ZCCM-IH is a minority shareholder in KCM with only about 20 Percent.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mining Expert Edward Simukonda said the Government could have at least renegotiated for a better sharing ratio from 20 percent to even up to 50 percent before even allowing Vedanta to come back.
He remarked that this has come at a time when the government has been actively seeking to increase its participation in the mining sector.
Simukonda has also criticized the government’s decision to hand over KCM back to Vedanta expressing disappointment at the Government’s decision adding that history is repeating itself knowing exactly the people that the government is dealing with.
Simukonda stated that this is treachery and the people have been let down stating that if they had not found anybody suitable to take over the mine they could have at least negotiated for a better sharing ratio from 20 percent to even up to 50 percent.
“It is very disappointing and sad because there is nothing that has happened because it’s like we have just gone back to square zero and knowing Vedanta with the treacherous behavior they have, I don’t see them implementing the promises they have. and I don’t think they will deliver what they have promised and if they do am sure there will be strings attached.”
KCM runs Konkola Mine in Chililabombwe, Nchanga Mine in Chingola, Nampundwe Mine in Shibuyunji District and Nkana Smelter in Kitwe.
Simukonda said, “The only exciting thing about it, is that people will start getting their salaries now on the Copperbelt. But otherwise, the money they want to boss about it is the people’s money so why even talk about it because they were supposed to pay it in the first place.” Remarked Simukonda.
He said, “I am very disappointed because I expected more especially where shareholding is concerned, I was expecting the Government to push for an increase.”
“This is a betrayal and people expected more and I can guarantee you only those with political reasons are celebrating but otherwise the fact is bringing back Vedanta is very disappointing.”
“History is likely to repeat itself on KCM because you know the MMD made a mistake they gave that mine for a song, now we have come here when we had an opportunity when these people were asked to leave we had an opportunity to renegotiate the bad deal that was there and nobody now talks about it.” He said.
Simukonda added that, “If this negotiation was done with people who understand the mining sector very well we could have had a better deal today.”
The government has further been challenged to take steps to ensure that its citizens benefit from the sector’s growth. This includes increasing its shareholding in key mines such as KCM and addressing the challenges facing the industry as failure to do so could have significant long-term consequences for the country’s economic development.
