Vedanta offers Zambia investment commitments if handed back KCM

LUSAKA (Reuters) – Vedanta Sources has supplied to step up funding in Zambia’s Konkola Copper Mines (KCM) and implement a number of social accountability programmes if it resumes management of the native agency, an organization letter despatched to the federal government confirmed.

Zambia’s earlier authorities put KCM into the arms of liquidator Milingo Lungu in Could 2019, triggering an ongoing authorized dispute with Vedanta Sources, KCM’s father or mother firm.

The federal government accused Vedanta of failing to honour licence situations, together with promised funding. Vedanta has repeatedly denied KCM broke the phrases of its licence.

In a leaked letter addressed to Mines Minister Paul Kabuswe, the authenticity of which was confirmed by a neighborhood firm govt, Vedanta chief govt Sunil Duggal stated the corporate is dedicated to investing an extra $1 billion in direction of capital mine improvement and different infrastructure to spice up KCM’s output.

“The above commitments by Vedanta will likely be included in a Framework Settlement to be entered into between KCM, Vedanta, ZCCM-IH and (the federal government),” the letter dated Could 5 reads.

ZCCM-IH is the federal government’s mining funding firm.

Duggal stated the protracted dispute between Vedanta and the federal government was not benefiting any of KCM’s stakeholders and it was essential to shortly attain a mutually helpful resolution.

Kabuswe and Presidential spokesman Anthony Bwalya couldn’t instantly be contacted for remark.

Vedanta was dedicated to paying KCM suppliers, particularly small suppliers owed as much as $220 million on the level the Provisional Liquidator was appointed, Duggal stated within the letter.

The corporate additionally dedicated to extend salaries by 20% throughout the board.

“The settlement will likely be auditable on a bi-annual foundation by an impartial agency to confirm all events’ compliance with their commitments below the Framework Settlement,” the letter, which is copied to President Hakainde Hichilema, reads.

Vedanta Zambia Company Communications Director Masuzyo Ndhlovu stated the letter was despatched in response to feedback by the mines minister relating to the situations below which KCM could possibly be returned to Vedanta.

“Our group CEO gave an overview of the situations for Vedanta’s return to KCM Plc. The content material is genuine and was addressed to the minister,” Ndhlovu informed Reuters.

(Reporting by Chris Mfula; Modifying by Kirsten Donovan)