KCM says has not received divorce letter from Lungu

KCM says has not received divorce letter from Lungu

Press release

Konkola Copper Mines Statement

Chingola, 20 May 2019: Konkola Copper Mines Plc (KCM) is aware of media reports, quoting the President of Zambia, Mr. Edgar Chagwa Lungu, in respect of a decision regarding the future of KCM.

KCM is yet to receive formal communication from the Government of Zambia on this, although it has sought an urgent meeting with the President and/or the Minister of Mines.  

The intention of KCM and its primary shareholder, Vedanta, is to continue to engage with the Government in a constructive and transparent manner. The Government, through ZCCM-IH, is a direct and critical shareholder of KCM and its representatives who are on the KCM Board are fully apprised of and are party to the circumstances of the company and major decisions that have been taken.  

Vedanta is a long-standing investor in KCM and in Zambia, having invested over US$3 billion since the acquisition of this asset. The company employs nearly 13,000 people at its sites and operates clinics, hospitals and schools through its corporate social responsibility programme that amounts to over $210 million since 2004. The company is yet to receive a positive return on this investment while, on the other hand, taxes, duties,  fuel and power costs have risen exponentially among other issues, thereby placing an enormous and unaffordable burden on the company. The most recent restrictions and duty on concentrates has negatively impacted the running of the smelter and the much needed acid to run its operations. KCM has contributed over $1.4 billion to the Zambian Exchequer since acquisition and continues to be the leading Pay as You Earn contributor in the country.

KCM is seeking to meet with the Government as a matter of urgency to discuss the future of KCM and the impact that the current onerous situation is having on the company, the people of the Copperbelt and the Zambian people as a whole.

ends

Eugene Chungu

General Manager, Corporate Affairs

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