VEDANTA TO INVEST US$ 1.3 BILLION ON KCM – KABUSWE

MINES Minister Paul Kabuswe has indicated that Vedanta is putting in place a strategy to invest US$ 1.3 billion to expand and modernize Konkola Copper Mines (KCM) in a bid to increase annual production of copper from the current 70,000 tonnes to 300,000 tonnes in the medium term.

Mr. Kabuswe said Vedanta was deeply committed to Zambia and the Zambian people and was fully aligned with the country’s vision of producing over 3 million metric tonnes of copper annually in the next 10 years.

He said Vedanta Resources had commenced funding to Konkola Copper Mines and had disbursed its first US$ 25 million for employees’ salaries, contract labour, as well as for other critical services needed to maintain the integrity of the asset.

“As per its discussions with the Zambian Government, Vedanta is putting in place a strategy to invest US$ 1.3 billion to expand and modernize the Konkola Copper Mines (KCM), and to increase the annual production of copper,” Mr. Kabuswe said.

He said Vedanta had deployed a technical team at KCM to work together with the current management to ascertain the state of the asset and that this is aimed at ensuring that the business was prepared for operations once Vedanta took over after the conclusion of the issue that was before the court.

He said once the Scheme of Arrangement had been agreed upon with the creditors and court cases withdrawn, the KCM Provisional Liquidator will vacate her office after the Liquidation case is discontinued in the High Court and will hand over the company to Vedanta.

He said this would effectively mean the liquidation process coming to an end as the KCM Board of Directors will then be reinstated or reappointed by both Vedanta and ZCCM-Investment Holdings who were shareholders of mine.

“Following the appointment of the Board of Directors, Vedanta will then work to implement the 20% salary increment to all direct KCM employees and offer a once-off K2,500 across-the-board award to all direct KCM employees and management will begin to report to the Board of Directors for policy decisions,” he said.