- by Ulande Nkomesha on 24 Aug 2019by Julia Malunga on 24 Aug 2019by Natasha Sakala on 24 Aug 2019by Natasha Sakala on 24 Aug 2019
- by Stuart Lisulo on 23 Aug 2019by Stuart Lisulo on 22 Aug 2019by Ulande Nkomesha on 22 Aug 2019by Ulande Nkomesha on 21 Aug 2019
- by Zondiwe Mbewe on 24 Aug 2019by Zondiwe Mbewe on 24 Aug 2019by Joseph Mwenda on 23 Aug 2019by Zondiwe Mbewe on 23 Aug 2019
- Goal Diggers
- by Abraham Kalito on 23 Aug 2019by Abraham Kalito on 23 Aug 2019by Abraham Kalito on 8 Aug 2019by Abraham Kalito on 8 Aug 2019
- by Diggers Editor on 24 Aug 2019by Diggers Editor on 22 Aug 2019by Diggers Editor on 21 Aug 2019by Diggers Editor on 20 Aug 2019
- Guest Diggers
- by Chisoni Mumba, PhD on 17 Aug 2019by CUTS on 4 Aug 2019by Kangwa Muyunda on 3 Aug 2019by Rueben Lifuka on 31 Jul 2019
- Editor's Choice
- by Diggers Correspondent on 24 May 2019by Diggers Reporter on 4 Mar 2019by Andyford Mayele Banda on 29 Jan 2019by Davies Mwila on 22 Jan 2019
- by Diggers Correspondent on 11 Aug 2019by Mukosha Funga on 27 Jul 2019by Mukosha Funga on 21 Jul 2019by Web Master on 27 Jun 2019
Govt liquidated KCM without regard to consequences – ZCCM-IH shareholdersBy Stuart Lisulo on 11 Jun 2019
Euronext, minority shareholders of ZCCM-IH, says government’s move to arbitrarily liquidate Vedanta Resources’ Konkola Copper Mines (KCM) Plc was hastily done without preparation.
But the minority shareholders insist that government did well to proceed with liquidating the troubled mining giant because Zambians had continuously been robbed for far too long.
Meanwhile, Euronext also criticised First Quantum Minerals’ (FQM) role in helping Zambia achieve its social and economic developmental agenda.
In a statement, Charles Thierry, who spoke on behalf of Euronext, stated that government’s decision to liquidate KCM had been hastily done without due regard to the consequences of its actions.
He argued that local mine asset takeovers had not worked well in the recent past, citing the Ndola Lime debacle.
Last month, government took repossession of KCM following the Lusaka High Court’s decision to appoint a provisional liquidator tasked to wind up the company.
“Nevertheless, as shareholders of ZCCM-IH, we are also concerned about the KCM liquidation. While the difficult situation had been ongoing for years, the decision to revoke Vedanta’s licence seems to have been taken in haste without preparation and anticipation. Due to our meagre resources, our company does not have the financial means to maintain the KCM mines in operation or maintenance over the long-term as evidenced by the liquidation of former lime jewel Ndola Lime Co.,” Thierry stated in a press release issued, Monday.
“We have helplessly witnessed its unfortunate management and inadequate industrial investments. In the end, more than US $100 million went up in smoke…These financial difficulties were followed by a risky investment in the oversized CAC cement plant. Therefore, this additional charge related to KCM will compromise the viability of our holding company, ZCCM-IH.”
But Thierry, however, insisted that government did well to proceed with liquidating the troubled mining giant because Zambians had continuously been robbed for far too long.
“The minority shareholders of ZCCM-IH support the decision of the Zambian government, the company’s majority shareholder, to proceed with the liquidation of KCM, thereby, revoking Vedanta’s mining license. For many years, we have wanted to strong measures to be taken against mining companies that do not play the fair game with the people of Zambia and ZCCM-IH. For too long, these companies have abused the caring of different Zambian governments, anxious not to hurt international investors and to preserve employment in the Copperbelt,” he noted.
Thierry also condemned Vedanta Resources’ founder and chairman Anil Agarwal’s infamous 2014 pronouncement where he bragged about the mine returning at least US $500 million in profits annually after only buying KCM for a paltry US $25 million.
“For several days, Vedanta has been trying to justify the inevitable dramatic situation of KCM, but insists on keeping and running the mine. Odd situation…have we ever seen a leech want to continue sucking at all costs a dead man…? In line with their logic, after such a financial and environmental disaster, they should rather leave Zambia by the back door and by lowering their head,” he urged.
“Not only does Vedanta despoil Zambia and pollute the land of surrounding villagers, not only does Anil Agarwal not keep his promises, but he also has the imprudence to mock the Zambian people and their leaders! While he is a spoils-man, humiliating them in this way is disgusting…”
Meanwhile, Thierry equally criticised FQM’s role in helping Zambia achieve its social and economic developmental agenda.
“FQM is another clear case in point. How can we really believe that FQM is letting US$3.5 billion sleep in the Kansanshi Mine’s coffers? To keep that huge amount of retained earnings is abnormal. Would they be distributed, the ZCCM-IH’s share would be as much as US $700 million, while Zambia is in dire need of money and development,” stated Thierry.
“Would the purpose of FQM be to stifle the people of Zambia? It may be Mr Pascall and his staff’s strange way of rewarding Zambians for allowing FQM to build a world mining empire through the Kansanshi Mine…Recently, rumours have circulated that FQM has proposed to buy back our 20 per cent Kansanshi shares for US $700 million. In other words, FQM would offer to buy it back with our own money!”
About Stuart Lisulo
Stuart Lisulo is an experienced journalist with a focus on business news.
Email: stuart [at] diggers [dot] news
- Govt willing to discuss “user-friendly” exit for Vedanta – Musukwa - 23 Aug 2019
- If austerity measures were working, we wouldn’t be having these problems – BoZ - 22 Aug 2019
- Kwacha slides back to hit K13 per dollar - 9 Aug 2019
- Don’t stop us, we want to talk about corruption – Zukas - 1 Aug 2019
- Govt should consider emergency cash transfers to counter high mealie meal prices – IAPRI - 30 Jul 2019
- Mwenye's corruption remarks irk PF (3,550 views)
- ConCourt has no powers to hear Bill 10 - Kalaluka (2,502 views)
- If austerity measures were working, we wouldn't be having these problems – BoZ (2,285 views)
- Zesco announces increased load-shedding (1,620 view)
- Forget the Damn headline, did you get the message? (1,215 view)
- KCM opposes Vedanta’s application to disregard in-house lawyer’s affidavit
- Maize dependency will continue making Zambia vulnerable to hunger – Kayula
- High mealie meal prices are an indictment on Lungu – Nalumango
- High Court restrains Tilyenji from acting as UNIP president
- Why was impeachment motion halted if courts have no bearing on Parley, HH asks Matibini
Subscribe For News In Email
The News Diggers
Deputy News Editor
Plot No. Lus/9812/649-MC8
off Alex Chola Road
P.O. Box 32147
Telephone or WhatsApp:
diggers [at] diggers [dot] news
editor [at] diggers [dot] news
Send this to a friend