LUSAKA, (Xinhua) –
A senior Zambian government official said on
Friday that a crisis meeting has been called with mining giant,
Konkola Copper Mines (KCM) Plc, following reports that the
company had been transferring huge profits from the country and
under reporting production figures.
a unit of London-listed Vendata Resources Plc, has come under
scrutiny following reports that it was under reporting its
production figures and transferring profits from the southern
report released by Foil Vedanta, an international watch group
that has been trailing the operations of the mining giant in the
world, revealed that although Vedanta Resources was making the
most of its money from its operations in Zambia, its
contribution to the country’s tax revenue was close to zero and
that the company may be exporting more copper than it claims in
revelation forced Zambian Vice-President Guy Scott to tell
parliament that “strange things” were happening at KCM and that
the company maybe on the verge of bankruptcy and that the
government was keeping “a close eye” on the company’s
Minister of Mines, Energy and Water Development Christopher
Yaluma told journalists in an interview that a meeting has been
called over the weekend to discuss, among other things, the
contents of the report and to find a way forward.
are meeting KCM management today (Friday) and tomorrow
(Saturday). We want to discuss the content of the report... and
we don’t want any witch-hunting,” he said.
said the purpose of the meeting was to look at issues that would
make the mining firm to improve its operations, adding that the
company has invested so much in the country and it was the
government’s desire for the company to continue investing in its
Thursday, the company issued a statement denying that it was on
the verge of bankruptcy and that it will continue to build on
its current investment in Zambia.
denies reports of closing down
LUSAKA, (Xinhua) --
Zambia’s largest copper mine on Thursday denied
reports quoting senior government officials that the company
maybe on the verge of bankrupt and that the owners do not mind
what the company is currently going through.
Last Friday, Zambian Vice-President Guy Scott told parliament
that “strange things” were happening at Konkola Copper Mines (KCM)
Plc, owned by London-listed Vendata Resources Plc where the
owners do not mind the company being declared bankrupt or placed
Zambian vice-president told parliament that it appeared the
company had externalized huge amounts of money and that the
government was keeping “a close eye” on the operations of the
company, he said, had liabilities in excess of 1.5 billion U. S.
dollars and that it had not paid its creditors and repaid bank
government concerns followed a report released by Foil Vedanta,
an international watchdog that has been trailing the operations
of the mining giant throughout the world.
report revealed that although Vedanta Resources was making most
of its money from its operations in Zambia, its contribution to
the country’s tax revenue was close to zero and that the company
may be exporting more copper than it claims in Zambia.
According to the report, the style of operation was a pattern
for Vedanta across India and elsewhere.
according to a statement seen by Xinhua, the company has denied
the reports that it was on the verge of collapsing, adding that
the company will continue to build on its current investment in
“In recent weeks, a variety of wild and misleading statements
have been made about KCM and its parent company, Vedanta
Resources Plc, attributed to a report by an NGO (Non
Governmental Organization,” the statement said.
“Our mining operations and production has never been kept
secret: the Zambian people own 20.6 percent of KCM through
ZCCM-IH. Therefore as a good corporate citizen, the company
reports all the required operational information, on a regular
basis, to its shareholders and the various regulatory
agencies,” the statement added.
company added that it was unfair to claim that it was not
reporting production or profits or that it was under-paying
“KCM, like any other business, has experienced many
challenges. We are however, confident that working closely
with the government, our valued employees and contractors, and
business partners, we will succeed in developing our copper
reserves and resources in a responsible, profitable and fair
manner” the company said.
Last year, the company raised a storm when it wanted to fire
over 1,000 employees due to operational challenges.