By NATION REPORTER
A CONSORTIUM of Civil Society Organisations that advocate for a viable mining sector, is happy that Government’s has submitted the creditor’s scheme of arrangement to the Zambian court to expedite the KCM Vedanta transition process.
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Consortium leader Samuel Banda, who is also Advocates for National Development and Democracy Executive Director (ANDD) said the milestone development would now facilitate the withdrawal of the Provisional Liquidator to allow Vedanta to take full control of KCM and begin to implement their investment commitments.
Mr Banda said that the injection of over US$1 billion would help in recapitalisation and mining development, clearing off payment of US$250 million owed to suppliers and contractors that KCM owed.
He said the recapitalisation would see the implementation of the corporate social responsibility programmes to enhance community development with a budget of US$20 million, and increasing salaries for workers by 20 percent.
“We feel this development will not only help to expedite the much-anticipated transition process but also address the unrest among workers who are expectant to benefit from Vedanta’s mining commitments,” Mr Banda said.
Mr Banda believes the KCM employees who recently protested demanding a K2, 500 pay-off were justified because of the confidence they have in Vedanta, whose hands were unfortunately tied due to the delayed transition process.
He has urged the Minister of Mines and Minerals Development, Mr Paul Kabuswe, to give the nation regular updates on the transition process to avoid misinformation regarding Government’s position on this very important national matter.
“We are however motivated that the submission of the creditor’s scheme of arrangement will lead to the full realisation of our country’s mining vision having Vedanta in full control of KCM to account for its mining commitments”, Mr Banda said.
He said the consortium is optimistic that Vedanta Resources Ltd will fulfil its investment commitments and contribute positively to the national economic and social development.
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