Vedanta Resources has announced that its Zambian subsidiary Konkola Copper Mine (KCM) will preserve jobs despite the new mining tax regime introduced in Africa’s second largest copper hotspot. This was confirmed by KCMs acting chief executive officer Venkatesan Giridhar during a consultative meeting with Finance Minister Honourable Margaret Mwanakatwe on 29 Jan.
Agarwal’s directive to preserve jobs
Giridhar relayed Vedanta’s passion about the success of the subsidiary hence its chairman Anil Agarwal’s directive to KCM management to approach the subject of security of employment tenure with due care and compassion for the citizens of Zambia.
KCM commended the states open door policy and dialogue approach through regular engagement interaction with the private sector to achieve sustained economic growth, wealth creation for all economic players. The miner also
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I wish to confirm, therefore, that there will be no loss of jobs at our sites as a result of the new tax regime. We undertake to constructively engage key stakeholders such as the Government, trade unions, the media, local communities, and our shareholders, in a respectful manner to ensure that we contribute to the growth of the economy on a sustained basis.” Giridhar said.
Domestic resource mobilisation reaffirmation
Honourable Mwanakatwe re-affirmed the states focus on domestic resource mobilization, adding that the drive is aimed at raising revenue for investment in social sectors, productivity ventures, and infrastructure development.
Concerns around rising trend in imported concentrates
The Minister appealed to KCM to implement the commitment made in the meeting to timely pay local suppliers. She expressed concern that the upward trend in imported concentrates in contrast to the downward trend in locally mined concentrates was a worrying scenario that creates the impression that KCM has been focusing more on trading than local mine development.
The deep to be completed within 3 to 6 years
Further, Mrs. Mwanakatwe stated that the assurance made by KCM to complete the development of long-term ventures such as the Konkola Deep Mining Project within the next 3 to 6 years was uplifting and a good sign that the firm would finally get rid of its loss-making image.
KCM joins the likes of FQM’s Kalumbila, CNMC Luanshya copper mine and Glencore’s Mopani copper mines in preserving jobs following the impasse between the chamber of mines and the government in light of the new mining tax regime.