VEDANTA URGED TO SURRENDER KCM MINORITY STAKE TO GOV’T

VEDANTA Resources should consider selling its minority shares in Konkola Copper Mines (KCM) to the government instead of looking for another private investor, the National Union for Miners and Allied Workers (NUMAW) has said.

NUMAW president Saul Simujika says instead of selling the minority stake to a private entity, it was important that Government should increase its stake in the giant mine.

Mr Simujika said the 20 percent stake Government had in KCM was little, therefore, it was prudent that it considered increasing the stake which would be critical in mobilising resources for national development.

“Vedanta should engage Government to look on how to improve the 20 percent shares in KCM instead of giving the shares to somebody else,” Mr Simujika said.

He said it would be the government’s decision whether to engage another investor to take up the acquired stake from Vedanta.

He said the government need to be strategic so that the country can benefit significantly from the giant mine.

“For us, we are looking from that angle, this will be the best way to handle this issue,” he said.

Vedanta was considering to sell minority stake in KCM once it fully takes over the operation of the giant copper mine.

And Vedanta Resources has announced that it has embarked on a fundraising campaign meant to raise US$1.3 billion for the recapitalisation of KCM.

Vedanta Base Metals Chief Executive Officer, Chris Griffith said the company was owning 80 percent shares in the giant mine and selling a minority share was one of the options.

He was speaking on the sidelines of the just ended mining Indaba in Cape Town, South Africa.