KCM warned

Wed, 28 Dec 2016 11:43:49 +0000

By Rodgers Kalero

 GOVERNMENT is going to revoke the mining licence of Konkola Copper Mines (KCM) if the mining company fails to prove its capacity to develop the new Copper sources at Konkola Deep Mining Project (KDMP), the Nchanga Underground Mine and Open-Pit, Mines and Mineral Development Minister Christopher Yaluma has warned.

And Mr Yaluma has also told management at the giant mining company to ensure that it settled all the money it owed the contractors and suppliers by the end of January 2017 and start the year on a clean sheet.

Meanwhile, KCM has released US$4.5 million to pay labour-based contractors and some suppliers while the balance  would be paid next year in January.

Mr Yaluma said KCM should prove its capacity to develop the new Copper Sources at KDMP, Nchanga Underground Mine and Open Pit or Government would be compelled to revoke the licence of the mining company.

Mr Yaluma sounded the warning during a meeting with KCM management and suppliers at KCM headquarters in Chingola yesterday.

It was revealed during the meeting that unions and other stakeholders were concerned with KCM’s failure to develop the various copper resources among them, the Nchanga Underground Mine, which had been on care and maintenance for a long time.

“Government and indeed other stakeholders are concerned at what is happening at KCM and so you have to prove that you have capacity to develop the new Copper sources at KDMP, the Nchanga Underground Mine and Open-Pit or else Government will have no alternative, but to revoke your licence.

“Yes, we will revoke the mining licence if you do not fulfill what we have agreed in this meeting and we will look for other investors. There are a number of investors who are ready to come and run KCM,” Mr Yaluma warned.

Mr Yaluma also urged KCM to submit a detailed plan that would clearly address all the concerns raised within 14 days.

He said the plan would be used by Government to monitor and measure the performance of KCM operations, saying the mining company had been directed to settle its financial obligations to all its suppliers and contractors.

He also urged KCM management to ensure that it settled all the money which it owed the suppliers and contractors before the end of January 2017 so that they could start the New Year on a clean sheet.

He said he was deeply saddened that some families were wallowing in hunger because KCM had not paid the contractors and suppliers the money to pay their workers.

“As I told you earlier, make sure that you fulfill what we have agreed here and one of the things we have agreed is to make sure that you pay all the money you owe the contractors or else, Government will revoke your licence.

People are wallowing in hunger because they have not been paid. So make sure that you pay all the suppliers and contractors. I will be closely monitoring this situation until all the suppliers are paid,” he said.