‘CLARIFY FUTURE STATUS OF MCM, KCM’

…suppliers need clarity for planning purposes

GOVERNMENT should clarify the future of Mopani Copper Mines and Konkola Copper Mines (KCM) in terms of investment so that the business sector can also plan and make production projections, a Kitwe-based business executive has said.

Mr Augustine Mubanga, the former Association of Mine Suppliers and Contractors (AMSC) president has also said if Vedanta PLC was serious about coming back to KCM and be able to run the giant mining company effectively, it should compensate suppliers and contractors with interest who up to now have not been paid the debt which it had accrued while running the mine.

Mr Mubanga said apart from the business sector knowing the business opportunities and production projection, the employment projection will also be known if the future of MCM and KCM in terms of investment was clarified.

In an interview in Kitwe yesterday, Mr Mubanga said the issues regarding the two giant mining companies needed to be clarified and addressed in the new year so that the uncertainties that have gripped the miners, suppliers and contractors doing business with the two companies could be put to rest.

“The issue of the future of MCM in terms of investment needs to be clarified on how much will be invested in the mine and how much business it will create. If this is clarified, then the business community will know how much business opportunities will be available.

“Employment projection and potential will also be known if the issue of investment is clarified. So we hope that, in the new year, we will see uncertainties that have gripped the miners, suppliers and contractors doing business with the two giant mining companies put to rest after a number of issues are addressed and clarified,’’ Mr Mubanga said.

For KCM, Mr Mubanga said, there was urgent need to look for an investor because the asset was declining or losing its value due to non capitalisation

He said the problem was that if the mine stayed in its current form, it continues to lose its value and it may be difficult to find an investor.

“At KCM, there are issues of court cases with Vedanta PLC which needed to be resolved and then the issue of recapitalisation.

“We need to find an investor with capacity to re-capitalise the mine or else because, in its current form, the giant mining company will continues to lose its value and it may be difficult to find an investor,’’ he said

Mr Mubanga was however quick to state that Vedanta PLC must not be brought back because it had lost social contract with the people of Zambia in general and the residents of Chingola and Chililabombwe in particular through its failure to recapitalise the mine, paying suppliers and contractors.