Speaker of the National Assembly, Nellie Mutti, has directed the Minister of Mines, Paul Kabuswe, to issue a ministerial statement regarding the financial statuses of Mopani and Konkola Copper Mines (KCM).
The two entities have been subjects of complaints from suppliers of goods and services for failing to pay them.
Last week, court bailiffs acted against KCM in Chingola after the company’s failure to make a partial payment of the $29.6 million debt owed to the Copperbelt Energy Corporation (CEC) Plc.
KCM later obtained a stay of execution pending an ex parte hearing.
Rising on an urgent matter without notice, Kamfinsa Member of Parliament Christopher Kang’ombe sought clarity on the two mines and their failure to pay suppliers.
“Last year, there was huge excitement when an announcement was made that Mopani Copper Mines had been sold to a new equity partner called IRH [International Resources Holding].
“There was also high expectation, Madam Speaker, that with the return of Vedanta to KCM, suppliers and contractors would be paid on time and business opportunities would be given to Zambian businessmen and women contracted by the two mining companies,” he said.
“Unfortunately, Madam Speaker, what has transpired and what is official now, is that KCM, for instance, is actually in court because it’s unable to meet its obligations to different suppliers and contractors. People are now wondering: what was the spirit of inviting Vedanta back to operate a mine when they have no financial capacity?
“The Copperbelt Energy Corporation, for instance, Madam Speaker, has sued KCM in court for failure to meet its obligations and we are hearing about bailiffs going to a mining company which, ideally, Madam Speaker, is supposed to be providing services to our people…”
He wondered whether Kabuswe was in order not to provide details on the financial position of KCM and Mopani, “considering that these are two mines that we were told would be in a financial position to provide services to our people, to provide contracting jobs to our people?”
Ms. Mutti then guided that in view of what has been reported and the court action, Kabuswe should give a ministerial statement on Thursday or Friday.
