Sun, 25 Dec 2016 10:44:03 +0000
By ROGERS KALERO
GOVERNMENT is concerned that Konkola Copper Mines (KCM) has abandoned the implementation of the Upper Ore-body Project at Nchanga Mine which could have extended the life of the mine by at least 25 years,” Mines Minister Christopher Yaluma has said.
The Mines Minister was speaking on Friday night at Lunte Lodge in Kitwe when he issued a statement on the operations of KCM after meeting the management of KCM, contractors and suppliers at KCM offices in Chingola.
Mr Yaluma said his ministry was also concerned that Nchanga Underground Operations have remained suspended for too long without any clear indication as to when operations could resume.
He said the ministry had identified several operational challenges and business inefficiencies in KCM which have created serious concerns to Government on the sustainability of the mine operations.
“The Ministry was concerned that the Nchanga Underground Operations have remained suspended for too long without any clear indication as to when operations shall resume.
“The Ministry is also concerned that KCM has abandoned the implementation of the Upper Ore-body Project at Nchanga Mine which could have extended the life of the mine by at least 25 years,” Mr Yaluma said.
Apart from the above mentioned concerns, Mr Yaluma said Government was also concerned that there was nothing much happening at Konkola Deep Mining Project (KDMP) in terms of capital and secondary developments despite the project being key to the sustainability of the KCM operations.
“The project was commissioned a long time ago but lagged behind in commencement of production. KCM does not seem to have put in place any effective exploration programmes from the time of acquisition of the mine. “The other concern is that KCM has manifested serious signs of financial distress. The ministry has received several complaints not only from employees but also suppliers and contractors about the failures of the company to honour its financial obligations,” he said.
He, however, said from the concerns raised by the Government, he was happy to inform the nation that KCM had committed itself to accelerate the remaining underground developments that would facilitate the commencement of production from KDMP within three years.
He said the company was also undertaking the geological and technical evaluation of the Nchanga Underground Mine (Lower Ore Body) to facilitate the speedy resumption of operations.
He further said that KCM management was being urged to invest in exploration in Greenfields to enable them increase Ore resources and extend the life of the mine.
“To this effect, the company will submit a detailed plan that will clearly address all the concerns raised within 14 days. This will be used by Government to monitor and measure the performance of the KCM operations. KCM has also been directed to settle its financial obligations to all its suppliers and contractors.
“I am happy to mention that the company has committed itself to paying labour based contractors by Tuesday 27th December, 2016. As for the suppliers, payment will be done next week and the balance will be paid by mid-January 2017,” he said.
