KONKOLA Copper Mines Plc has announced that the first instalment of staff redundancy packages due to employees who had crossed over to the newly-created SmeltorCo Limited and Konkola Mineral Resources Limited were paid on March 25.
In a management brief, KCM chief executive officer Christopher Sheppard stated that the first instalment of the redundancy packages due to staff that had moved to the two newly-created entities following restructuring of the mining company’s operations was paid out on March 25 ahead of the originally scheduled date of March 31.
“Management wishes to inform all employees that the first instalment of the redundancy packages due to employees in the KCM 1 to KCM 5 grades, who have crossed over to KCM SmeltorCo Limited and Konkola Mineral Resources Limited after the restructuring and reorganisation of KCM will be paid out, March 25. The payment is way ahead of the March 31 revised date, which was announced in the previous management brief,” Sheppard wrote.
“As for the KCM 5S and other grades above, the first instalment of the redundancy package will be paid on March 31. The Provisional Liquidator (Milingo Lungu) has taken advice from counsel that despite the pending hearing, there is no legal restraint or impediment to pay employees their dues.”
And Sheppard advised employees to utilise their hard-earned funds wisely to avoid destitution.
“Management wishes to caution employees that the redundancy packages must be spent in a wise manner to ensure no financial stress arises afterwards. Plan your investments thoroughly together with your families. We wish you well in all your future endeavours and implore you to continue working hard to make our subsidiary companies successful. You must also remember to observe the highest safety standards and all COVID-19 prevention measures,” stated Sheppard.
KCM’s reorganisation and restructuring into two subsidiary companies, namely KCM SmelterCo Limited and Konkola Mineral Resources Limited took effect February 1, 2021, in a bid to increase efficiency, foster optimisation and boost business opportunities.
The unprecedented move, however, triggered widespread backlash from legal experts and concerned stakeholders that the splitting of the troubled mining giant was illegal and ultra vires the Provisional Liquidator’s role.
Vedanta had warned following its loss in a lawsuit where it sued Milingo over the splitting of the companies that the move would have grave financial consequences for the State.