Wednesday, April 24, 2024
HomeLocal NewsVedanta injects US$25m in KCM

Vedanta injects US$25m in KCM

By NATION REPORTER 

VEDANTA Resources has commenced funding to Konkola Copper Mines (KCM) and has disbursed its first US$25 million for employee salaries, contract labour as well as for other critical services needed to maintain the integrity of the asset. 

Vedanta Director of Corporate Communications, Masuzyo Ndhlovu, said the company had also deployed a technical team at KCM to work together with the current management to ascertain the state of the asset. 

Mr Ndhlovu said this was aimed at ensuring that the business was prepared for operations once Vedanta takes over upon the conclusion of the scheme of arrangement 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He said once the scheme of arrangement had been agreed upon with the creditors, and court cases withdrawn, the KCM provisional liquidator would vacate the office after the liquidation case was discontinued in the High Court and would hand over the mine to Vedanta. 

Mr Ndhlovu said this would effectively mean the liquidation process coming to an end. 

He said the KCM Board of Directors would 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 percent 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.

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

As per its discussions with the Zambian government, Vedanta is putting in place a strategy to invest US$1.3 billion to expand and modernise the Konkola Copper Mines and to increase the annual production of copper from the current 70, 000 tonnes to 300, 000 tonnes in the medium-term,” he said. 

Mr Ndhlovu said Vedanta’s business approach was focused on delivering sustainable, long-term returns to shareholders and creating value for the wider stakeholder fraternity. 

He said the company remained committed to the development of the Konkola Deeps Project and meeting its agreed obligation of US$250 million payment to all local small suppliers and contractors and to operationalise its proposed community development initiatives, for which it had allocated $20 million per year.

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