KCM Creditors Urged to Support Scheme of Arrangement for Mine’s Revival
The Vedanta Must Return Community Campaign Movement is urging creditors of Konkola Copper Mines (KCM) to support the upcoming scheme of arrangement meetings.
These meetings, crucial for resolving the KCM disputes, are scheduled for May 24th and 30th, with separate sessions for creditors owed less and more than a million dollars.
Movement Coordinator Chishala Mwamba highlights the negative impacts of the prolonged KCM issues, including worker layoffs, unpaid contractors, and declining copper production.
He emphasizes that a successful scheme of arrangement would benefit all stakeholders, particularly the surrounding communities.
“With the scheme’s conclusion, we expect the government to officially hand over KCM to Vedanta Resources,” says Mr. Mwamba. Vedanta has reportedly committed to significant investments in KCM, including billions of dollars for recapitalization.
Vedanta’s return to KCM is also promising significant social and economic improvements. The company plans to invest over K600 million annually in community development projects, putting money back into the local economy. Workers can also expect a raise, with a projected 20% increase in salaries.
Additionally, Vedanta intends to settle outstanding debts by paying over $250 million to contractors and suppliers, which will improve cash flow in the region. These combined efforts have the potential to significantly reduce unemployment and poverty in the Copperbelt communities.
“These initiatives hold the potential for a major economic boost in our communities,” says Mr. Mwamba. “They could lift thousands of Copperbelt residents out of unemployment and poverty. That’s why creditor support for the scheme of arrangement is critical.”
