KCM says has made progress with supplier and contractor payments despite challenges
CHINGOLA, 15 November 2018: Konkola Copper Mines Plc (KCM) is pleased to advise that the company is making progress with settling arears owed to suppliers and contractors, and remains committed to clearing all outstanding bills.
The buildup in arrears has been as a result of several factors, including poor acceptance of the new business model by some stakeholders resulting in slow integration of business partners in company operations, low production at Konkola mine, high cost of energy and challenges in unlocking the VAT refunds.
The company continues to have fruitful engagements with its business partners and appreciates the support KCM has received during this time when there has been a build-up of debt to suppliers and contractors.
In October, Konkola Copper Mines paid out the full commitment of about nine million United States dollars ($9 million), the company made to business partners, including all Small and Medium Enterprises on KCM books.
The company continues to implement its turn-around plan for improved and safe production, with a view to becoming self-sustaining in 2019.
KCM will continue to work with and support the growth of SMEs in order to have robust economies in the areas of the company’s operations.