By MERVIS MUSONDA
ACTION Institute for Policy Analysis Centre (AIPAC) has expressed deep concern regarding Vedanta Resources’ financial capacity to manage Konkola Copper Mines (KCM) effectively.
Solomon Ngoma, Executive Director, stated that Vedanta’s actions raise doubts despite assurances.
Mr Ngoma said the investor announced US$245 million to pay debts to suppliers and contractors in July but only four entities received payments, leaving over 646 contractors and suppliers unpaid.
He noted the investor has failed to meet promised payment deadline of August 1, 2024.
Mr Ngoma said this will result in suppliers and contractors struggle to pay workers.
He further said the investor has failed to fulfil the promise of US$1 billion for mining recapitalisation.
“Scepticism grows about Vedanta’s ability to revitalise KCM assets. So, government engage another equity partner to operate KCM. We need to ensure mining asset contributes to national socioeconomic development. So, it prudent to partner with trustworthy investors, considering Vedanta’s poor mining track record.
“AIPAC urges President Hichilema’s government to take decisive action, prioritising Zambia’s interests and socioeconomic growth,” he said.
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