Konkola Copper Mines (KCM) has assured government of continued mining operations and renewed focus on Konkola Deep Mine.
This was during the meeting with government for information exchange on the implications of the new tax regime on mining operations.
Konkola Copper Mines early this month announced that it will downsize its operations after government went ahead to introduce a new tax regime which took effect on January 1.
KCM has applauded the Zambian Government’s on-going initiative aimed at regular engagement with the private sector in the quest to achieve sustained economic growth, wealth creation for all players in the economy, and the well-being of citizens.
The Copperbelt based mining giant has also commended the Government for its open door policy and affirmed that Vedanta and KCM’s approach is to resolve matters on the premise of constant dialogue and in a respectful and mutually beneficial manner.
Speaking during the consultative and information exchange meeting held at the Ministry of Finance Headquarters in Lusaka, KCM Acting Chief Executive Officer Venkatesan Giridhar informed a high-level Zambian Government team that Vedanta Group Chairman Anil Agarwal and Vedanta Group Chief Executive Officer Srinivasan Venkatakrishnan are passionate about the success of KCM hence their instruction to management to approach the subject of security of employment tenure with due care and compassion for the citizens of Zambia.
“I wish to confirm, therefore, that there will be no loss of jobs at our sites as a result of the new tax regime,” Mr. Giridhar announced.
“As KCM, we undertake to constructively engage key stakeholders such as the Government, trade unions, the media, local communities, and our shareholders, in a respectful manner to ensure that we contribute to the growth of the economy on a sustained basis,” Mr. Giridhar said.
He said this when he presented a paper on the impact of the new tax regime on KCM mining operations and its future undertakings.
The other issues covered in the consultative and information exchange meeting were KCM smelter business strategy, the deficit of concentrates in the country, the immediate pasts’ depressed London Metal Exchange scenario, and the KCM growth strategy.
Mr. Giridhar took the opportunity to reminisce over the discussions held with the Zambian Government during the visit of Vedanta Resources Group Chief Executive Officer Srinivasan Venkatakrishnan in 2018, on the approach required for further investment and development of the Konkola Deep Mining Project [KDMP] in Chililabombwe within the next 3 to 6 years. This will provide the bulk of the input material being supplied by Konkola Copper Mines for the smelter, in the medium to long term. He emphasised that the company was renewing its focus on Konkola Deep Mine in Chililabombwe and would ensure further investment in the short to medium term.
In this regard, said Mr. Giridhar, “our actions are designed to sustain and create jobs, grow the economy, and contribute more to the country’s treasury while effectively implementing our asset and liability management programme.”
The KCM delegation included the Vice President for Human Resources Beatrice Mutambo, the Head of Smelter and Refinery Enock Mponda, the Head Nchanga Business Unit Anil Tripathi, the General Manager for Finance Anand Soni, the General Manager for Corporate Affairs Eugene Chungu and Tax Manager Peter Kangambo.
The KCM delegation agreed with the Government team that positive sentiments are important ingredients in growing the economy through direct foreign and local investments.
He added that negative media reports have in the recent past also adversely affected the operations of the company, thereby causing the impairment of market sentiment; erosion of investor and customer confidence; destabilisation of workers morale; and, unwarranted agitation among other stakeholders.
Speaking at the same meeting, Minister of Finance Margaret Mwanakatwe thanked KCM for choosing the path of dialogue and for the proactive approach in reviewing mine operations, ensuring compliance, sustaining job creation, and contributing to the country’s growth.
Mrs. Mwanakatwe took the opportunity to re-affirm the Government’s focus on domestic resource mobilization, adding that the drive is aimed at raising revenue for investment in social sectors, productivity ventures, and infrastructure development.
The Minister appealed to KCM to implement the commitment made in the meeting to timely pay local suppliers. She expressed concern that the upward trend in imported concentrates in contrast to the downward trend in locally mined concentrates was a worrying scenario that creates the impression that KCM has been focusing more on trading than local mine development.
Further, Mrs. Mwanakatwe stated that the assurance made by KCM to complete the development of long-term ventures such as the Konkola Deep Mining Project within the next 3 to 6 years was uplifting and a good sign that the firm would finally get rid of its loss-making image.
In response to KCM’s concern about its battered image, the Minister called on all corporate citizens to raise their game in propagating correct information to the local and international investor community, the positive strides that were being made in economic management and to challenge any incidences of misinformation as that not only affected the smooth running of the economy, but it also had a debilitating impact on individual business entities because of tampered economic fundamentals arising from fake news and malice.
She took the opportunity to explain that the Government’s interest remained that of working together with the private sector, local communities and other stakeholders in the economy in arriving at win-win scenarios.
Mrs. Mwanakatwe also reiterated that once the drafting process was complete, the Government would circulate the Goods and Services Tax [GST] White Paper to THE PUBLIC for analysis and feedback before the final design of the proposed measures are presented to Cabinet and later Parliament in form of a bill for debate and consideration.
“Let us walk the journey together so that by 1st April, 2019, we can implement the Goods and Services Tax (GST),” Mrs. Mwanakatwe stated, and added that the GST will be a hybrid of Value Added Tax and Sales Tax, with all the attendant incentives and exemptions for manufacturers, exporters, and other eligible sectors of the economy such as education, health and agriculture.
“The difference with the current VAT is that there will be no refunds,” clarified the Minister.
The other Government officials who attended the meeting include Minister of Labour and Social Security Joyce Nonde Simukuko, Copperbelt Province Minister Japhen Mwakalombe, Ministry of Finance Permanent Secretary for Economic Management and Finance Mukuli Chikuba, Ministry of Mines and Mineral Development Permanent Secretary Paul Chanda, Zambia Revenue Authority Commissioner General Kingsley Chanda, Labour Commissioner Chanda Kaziya, Ministry of Mines and Minerals Development Director of Mines Mooya Lumamba, Ministry of Finance Director Investment and Debt Management Jacob Mkandawire, and Ministry of Finance Acting Director of Budget Willies Chipango.
Addressing the meeting, Mrs. Simukoko said mining companies need to ensure that the Government policy on minimum wages for all their operational units and sub-contractors, is complied with unfailingly.
The Minister of Labour called on KCM to demonstrate stability in operations by deploying management teams whose tenure at the company assures the Government and other stakeholders that additional investment projects which they had consistently announced, became operational.
She requested KCM to remain firmly committed to nurturing mutual trust in its relationship with other stakeholders and compliant with all applicable operational and labour laws.
And Mr. Mwakalombe called on KCM and other mining companies to consider giving long-term contracts to local contractors and suppliers as that helps to widen the tax base and avails the Government more options for domestic resource mobilisation.
“In pursuing your growth objectives, you need to take greater interest in the well-being of the communities in which you operate by ensuring that you network with local suppliers and contractors and thereby facilitate the exponential growth of the Copperbelt Province,” stated Mr. Mwakalombe.
In response, Mr. Giridhar acknowledged the previous challenges faced by KCM with regard to working capital and assured the meeting that the company was now placing every effort in the timely payment of suppliers and took the opportunity to appeal to the Government team to facilitate assessed and verified VAT refunds.

_________________________________________
MONEY FM IS ZAMBIA’S FIRST AND ONLY BUSINESS & PERSONAL FINANCE RADIO STATION. WE FOCUS ON BUSINESS AND MONEY-RELATED TOPICS, AS WELL AS GENERAL NEWS AND DISCUSSION OF WIDER SOCIAL TOPICS SUCH AS HEALTH, EDUCATION, FOOD, MUSIC, FITNESS AND MORE
_____________________________________________