‘TAKE OVER KCM’
GOVERNMENT through ZCCM- Investment Holdings (ZCCM-IH) should take over Konkola Copper Mine (KCM) before it is destroyed, the Mine Contractors and Allied Workers Union of Zambia has said.
Vedanta, the majority shareholder in Konkola Copper Mines (KCM), has stopped operations at its second copper mine over import duties on vital supplies needed for processing.
According to international news agency Reuters, Konkala Copper Mines (KCM) said it would be suspending operations at the Nchanga mine beginning last Friday (January 4) because acid concentrate was not readily available for its smelter.
The ministry of finance announced it would increase the mineral royalty rates by 1.5%, introduce a fourth tier rate at 10% when the copper price exceeds $7,500 per tonne, and make royalties on minerals non-deductible for tax purposes. does not act and take over the mine as we have advised. We will lose out and that mine will be flooded and then in the end the economy will suffer.
“We cannot accept the mine to arm-twist the government whenever the government changes the tax regime and policy so that it can be a win-win situation,” Chimfwembe said.
Meanwhile the Centre for Trade Policy and Development has challenged Mining companies to stop using Mine workers as tools for bargaining in negotiations on the proposed tax changes.
CTPD Executive Director Isaac Mwaipopo said that government should not condone such corporate manipulative behaviours.
Mr. Mwaipopo observed that that every time there was a standoff between mining companies and government, the mining companies were quick in pushing back and often times using the Zambian workers as sacrificial lambs in the bargaining process.
He said that it was imperative that dialogue was prioritised over the over the concerns from the mining companies with regards to the proposed tax changes.
Mr. Mwaipopo also noted that there is need for miners to realize that the minerals they are extracting and exploiting belong to the Zambian people and Zambians have every right to participate and benefit from its natural resource endowment and employment is one of the ways through which this is archived.