Vedanta Resources has taken over Konkola Copper Mines (KCM) after protracted negotiations with the government, following a legal impasse from 2019 when the mine was placed under liquidation.
Speaking during the announcement this afternoon, Vedanta representative Pushpender Singla disclosed that the firm has committed to invest $1 billion into KCM for development; $250 million to pay all local creditors; $20 million investment into the local community every year through a special purpose vehicle Community Trust; 20% increase in salaries for employees and; a one-off K2, 500 payment to all employees.
And Mines and Minerals Development Minister Paul Kabuswe noted that while the negotiations with all the stakeholders in the dispute took longer than initially anticipated, they were necessary for the benefit of all parties and the entire country to ensure all salient points in the agreement were taken care of.
Mr. Kabuswe states that the UPND Government has been very categorical on its position that no mining can take place in courts, adding that it was necessary to arrive at an amicable solution with the existing investor at KCM.
He adds that his Ministry will follow all existing legislation pertaining to the management of mines to the letter.
