Daily Nation Newspaper

Prof Saasa backs revoking KCM license

- By SILUMESI MALUMO

GOVERNMENT must revoke the mining license for Konkola Copper Mines (KCM) if it is financiall­y stressed and cannot manage to continue operating, University of Zambia Professor of economics Oliver Saasa said yesterday.

Reacting to sentiments by Minister of Mines and Minerals Developmen­t Richard Musukwa that Government would revoke KCM’s mining licence if it failed to revamp stalled operations, Prof Saasa said it was impossible for the mining firm to continue operating if it had financial challenges to sustain operations.

Prof Saasa speaking in an interview said it was prudent for the mining firm to close down due to financial challenges.

He said when a mining firm was limping financiall­y, it should close down and pave way for others to revamp operations.

“If it is already limping and is not able to stand and continue with the operations, the best way is just to completely stop operating,” he said.

Meanwhile, Prof Saasa advised Government to immediatel­y engage KCM for the firm to give a clear picture on its future.

He said that if during the deliberati­ons KCM failed to prove that it would find means of revamping the stalled operations, Government should not hesitate to revoke the licence.

“And I am also proposing that let government engage the KCM management to talk about the future of the mining firm. Dialogue is the only way to find a solution and during that meeting if KCM fails to convince government then the licence can be revoked.

“I am appealing to the government not to issue threats but engage the mining firm and if it feels the firm has no future in the sector it can then take draconian measures,” Prof Saasa said.

He advised the mining firm to submit its financial statements to the government to prove that it was financiall­y stressed.

He said the mining firm could be evading tax by lying that it was making losses in its operations.

 ??  ?? Prof Saasa
Prof Saasa

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