KCM forensic audit underway – Yaluma

Chairman Of Vedanta Resources-anil Agarwal
Chairman Of Vedanta Resources-anil Agarwal
Mines Minister Christopher Yaluma says a forensic audit on Konkola Copper Mines is underway following revelations by Vedanta Resources Chairman Anil Agarwal that the Mine has been making US$500 million minimum profit per year.


In a Ministerial statement to Parliament today Mr. Yaluma, who could not state the scope of the forensic audit, says the audit was instituted 3 weeks ago.

Mr. Yaluma says government will be undertaking similar audits at all the other mines to ensure compliance and avoid recurrence of the situation at KCM.

Mr. Yaluma says government policy on mining still remains that of encouraging the development of a private sector led mining industry while the role of government remains to create an enabling environment for investment that creates mutual benefit for the county and investors.

He says this is why reacting to the issues at KCM by nationalizing the mine would be sending wrong signals to potential investors that the policy environment in Zambia would be deemed as unstable.

Mr. Yaluma however warned that government will penalize any fraudulent mining company.

And Mr. Yaluma says Vendanta Resources has secured the US$400 million bank guarantee and that government has had access to the guarantee.

Mr. Yaluma says as so far $250 million has been used out of the total guarantee.

He was responding to a question posed by Chavuma MMD Member of Parliament Kenneth Konga who wanted to kwon whether Vedanta has obtained the US$400 million bank guarantee government said the mine would obtain and whether government has had access to the guarantee.