State puts KCM gives Konkola Copper Mines (KCM) a performance target

Konkola Copper Mines
Konkola Copper Mines

GOVERNMENT has given Konkola Copper Mines (KCM) a performance target and a time-frame to put back the operations of the mining company on track.
This follows recent revelations by Vice-President Guy Scott in Parliament that ‘strange things’ were happening at KCM and Government was worried and keeping a close eye on the mining company.
Dr Scott had disclosed that the mining company had liabilities running in excess of 1.5 billion US dollars.
Dr Scott said the mining company had also failed to pay its creditors and also had loans from banks.
He said Government had tasked the ministries of Mines and Finance to give a statement on the issue of KCM.
Dr Scott urged all Zambians to work together to ensure that Zambia did not lose out on revenue expected to be collected from the mining company.
He said Zambia stood to lose revenue in tens of billions of Kwacha if the issue at KCM was not handled carefully.
Speaking in an interview yesterday, Mines and Minerals Development Minister Christopher Yaluma said a technical audit had been conducted on KCM and a  performance target given to the company to improve operations of the mine.
“We have given them targets of how much they should produce at a particular period of time and as Government, we will monitor them to ensure figures are being adhered to,” he said.
The KCM motherbody will also be required to pump in funds to ensure that the mine functions at an acceptable rate and sustain the operations of the mine.
He said KCM had also been directed to pay back the $1.5billion owed to both local and international institutions.
Mr Yaluma said Government had also agreed with the mining company that there would be no more laying off of workers  and the company agreed to the terms given by Government.
He said Government was working with KCM to assist put back the mine on track.
“We have discussed and KCM together with its mother company have accepted and committed to working with us to improve the operations of the mine,” he said.