SICHINGA OPPOSES VEDANTA’S COMEBACK

By Jessica Mwansa

FORMER Minister of Commerce, Trade and Industry Bob Sichinga has opposed the return of Vedanta Resources to run Konkola Copper Mines (KCM).

Mr. Sichinga said bringing back Vedanta Resources to resuscitate mining operations at KCM was not the best deal for the country and its people.

“The Government through the Zambia Consolidated Copper Mines- Investment Holdings (ZCCM-IH) should have opted to run the mine as it had the capacity to do so adding that the country had an adequate human resource and that what was needed was to source for funds to inject in the mining operations just like Vedanta Resources would do,” he said.

Speaking to the Scoop, Mr. Sichinga wondered what Vedanta Resources would do differently in developing Zambia if they failed to do so when they ran the mines previously.

“This is another error that we are making from time to time. We keep making the same mistakes over time; what is it that Vedanta will do differently from what they did before? They have been on the mines before and they failed to comply with the conditions so, why have they been returned?

“All the mine engineers, chemical engineers, mechanical engineers and meteorologists working at KCM are Zambians. ZCCM-IH in its Articles of Association as a company as well as a Government owned company, has 100 percent shares on behalf of the Government in those companies,” he said.

Mr. Sichinga, who is also a former group financial controller for ZCCM, said the Government should not have opted for Vedanta adding as ZCCM-IH could borrow to invest in the mines as it was capable.

“The argument has been that Zambians cannot run the mines but they are the same Zambians who were running all the three mines from 1982 to 2000. The argument that Zambians cannot run the mines is nonsense because I have worked in the mines for 10 years with several other Zambians that worked for ZCCM and they can attest that what the Government has done by bringing back Vedanta Resources is a huge mistake. Zambians should have been given the opportunity to run the mines so that we do not make the same mistake,” he said.

He added that the creditors and workers were not being paid because Vedanta Resources was not truthful in its operations and questioned how they would be truthful this time around.

“There is nothing that will be done differently by Vedanta because it is not truthful despite being returned. It is the same Vedanta that was in the PF regime. How much will they contribute to the Government in the form of taxes? Zambia has to take full reign of the mines or increase its ownership in the industry to reduce poverty and create jobs. Whatever the Government does on behalf of Zambians regarding the mines will affect everyone and this is what has just happened by returning Vedanta Resources,” he said.

Mr. Sichinga said bringing back Vedanta is a fatal economic decision because of their insecurity adding that companies like Vedanta and Glencore had been posting losses since they started operations years ago and yet they kept expanding globally beyond Zambia.

“Companies like Vedanta and Glencore just come to develop their countries in our country. They are expanding and developing their economies while we continue to suffer because of our own mistakes,” he said.