…who have complained that the continued delay in settling the US$250 million owed to contractors, suppliers has created anxiety, uncertainty in the sector
By NATION REPORTER
THE Association of Mine Suppliers and Contractors has bemoaned the delays by Vedanta Resources to pay the US$250 million it owes to contractors.
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But Vedanta Resources Corporate Communications Director, Masuzyo Ndlovu, has assured the contractors that the debt would be cleared once the transition process is concluded.
Association president Costa Mwaba has complained that the settling of the debt owed to contractors and suppliers has taken long, which had resulted into many companies either winding up or scaling down on business and labour.
Mr. Mwaba said it was disheartening that despite several calls by the association for Vedanta to pay contractors, the company had failed to make any form of commitment as to when it would be able to settle the debts. He explained that the non-payment of debt was causing a lot of anxieties uncertainty in the industry which had negatively affected the operations of contractors and suppliers.
But Mr Ndhlovu said the contractors should be patient because the dismantling of the outstanding debt would be done when all the transition processes were completed.
“The association and other stakeholders are aware that after the announcement on 5th September, 2023 of Vedanta taking over KCM, the next step was the signing of the shareholders agreement and implementation agreement on 6th November, 2023. The next step is now the filing of a scheme of arrangement in court, withdrawal of the provisional liquidator, and appointment of a new Board,” Mr Ndhlovu said.
Mr Ndhlovu said Vedanta Resources and other key stakeholders would continue to ensure all necessary legal formalities and procedures were undertaken to restore control of KCM. He said as soon as all the processes were concluded of Vedanta taking over the operations of KCM, payments would then be made to all suppliers.
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