Vedanta Resources has commenced funding to Konkola Copper Mines (KCM) and has disbursed its first $25 million for employee salaries, contract labour as well as for other critical services needed to maintain the integrity of the asset.
The company has deployed a technical team at KCM to work together with the current management to ascertain the state of the asset, aimed at ensuring that the business is prepared for operations once Vedanta takes over upon the conclusion of the scheme of arrangement that is before the court.
Once the Scheme of Arrangement has been agreed upon with the creditors, and court cases withdrawn, the KCM Provisional Liquidator will vacate her office after the Liquidation case is discontinued in the High Court and will hand over the company to Vedanta.
According to the company, this will effectively mean the liquidation process coming to an end. The KCM Board of Directors will then be reinstated or reappointed by both Vedanta and ZCCM-Investment Holdings who are 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,” said a statement from the company.
In addition, Vedanta is deeply committed to Zambia and the Zambian people and is fully aligned with the country’s vision of producing over 3 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 $1.3 billion to expand and modernize the Konkola Copper Mines (KCM), and to increase the annual production of copper from the current 70,000 tonnes to 300,000 tonnes in the medium term,” said Masuzyo Ndhlovu Director of Corporate at Vedanta.
Ndhlovu said Vedanta’s business approach is focused on delivering sustainable, long-term returns to shareholders and creating value for the wider stakeholder fraternity.
“The company remains committed to the development of the Konkola Deeps Project and meeting its agreed obligation of $250 million payment to all local small suppliers and contractors and to operationalize its proposed community development initiatives, for which it has allocated $20 million per year.”
