Government Clarifies Mopani and KCM Situations, Announces Economic Boosting Measures
Minister of Mines and Minerals Development, Hon. Paul Kabuswe, MP, addressed various issues concerning the mining sector in Zambia, providing clarity on recent developments and outlining government initiatives aimed at boosting the economy.
Regarding Mopani Mine, Minister Kabuswe emphasized that politicians inciting protests among Mopani Mine workers are acting against the country’s interests, as the mine is currently experiencing positive investments.
He debunked misinformation spread by some opposition leaders, asserting that International Resources Holdings (IRH) has already injected $210 million USD into Mopani, with an additional $400 million USD paid to Glenco.
The Minister stressed that the Mopani deal is legal and transparent, dispelling rumors of any connections to President Hakainde Hichilema’s associates.
Addressing concerns surrounding Konkola Copper Mines (KCM), Minister Kabuswe highlighted the legal process underway, including the issuance of notices to creditors and the forthcoming restructuring of payments.
He assured that the management board’s reinstatement for KCM will follow the completion of creditor meetings.
In a positive development for retirees, the Kitwe City Council received a payment of K87 million, which is being utilized to settle retirement benefits, courtesy of IRH through Mopani Mine.
Minister Kabuswe also shared updates on Shaft 28 in Luanshya, noting its potential to generate employment opportunities and stimulate economic growth. The government aims to dewater Shaft 28, creating over 3,000 jobs and completing the exercise within a year.
Furthermore, the Minister announced upcoming initiatives, including a comprehensive mapping exercise of Zambia, funded by the Government of Japan, and discussions with ZESCO to prioritize electricity supply to the production sector to safeguard the economy.
On the mining front, the Ministry is preparing for Sugilite mining pending a mapping exercise to identify suitable sites. Additionally, plans are underway to reopen Kitumbwa Mine in Mumbwa, with the Local Content Law currently under review.
In conclusion, Minister Kabuswe reaffirmed the significance of the mining sector to Zambia’s economy, constituting 17% of the GDP, and assured continuous efforts to optimize its potential for national development.
