JOIN DRIVERN TAXI AS PARTNER DRIVER TODAY!
THE Zambian Government has crafted a business survival plan for Konkola Copper Mine (KCM), to save the mining firm from collapse, Mines Minister Christopher Yaluma has disclosed.
Mr Yaluma says the move has been taken following the findings of an
audit carried out at the Vedanta Resources owned firm by the Zambia
Revenue Authority (ZRA).
ZRA had carried out an inquiry into KCM’s operations following
revelations by the company’s chairperson Anwar Agarwal, that he had
bought the mine for a song and was reaping hefty profits from the
firm.
Mr Yaluma, however, said the audit had shown that KCM was not making any
profits as alleged by its chairperson and was instead on the verge of
collapsing.
‘‘To save jobs at the mine, Government as the minority shareholder in
the firm, has taken steps to save the company from collapse,’’ he said
in an interview.
Mr Yaluma disclosed that the financial predicament at the company was
not due to operational challenges but had been caused by
mismanagement.
He said as at September 30, 2013, KCM’s total liabilities
amounting to US$1.567 billion exceeded current assets by $123 million,
consequently the mine had failed to meet its obligations.
Since commencing operations in Zambia a decade ago, KCM has invested
in excess of $2.8 billion in its operations that have resulted in a
production rate of not less than 100, 000 tonnes of copper per annum.
London Stock Exchange- listed Vedanta Resources’ chief executive officer, Tom Albanese recently said the conglomerate was confident about KCM remaining a cornerstone in Zambia’s vision of producing more than 1.5 million tonnes of copper annually.
JAMES KUNDA – Times of Zambia
