Mines Minister Visits KCM for Fact-Finding Mission
Zambia’s Mines Minister, Hon. Paul Kabuswe, has reaffirmed the government’s commitment to ensuring the success of Konkola Copper Mines (KCM), following a fact-finding visit on Tuesday.
The minister, accompanied by Copperbelt Minister Hon. Elisha Matambo, Copperbelt Permanent Secretary Lawrence Mwanza, and senior government officials, toured KCM’s operations to assess progress under Vedanta Resources, which regained control of the mine eight months ago.
During the visit, Mr. Kabuswe emphasized the government’s vested interest in KCM’s revival, noting that the mine’s performance directly affects the economy of surrounding towns.
He urged patience from Zambians, explaining that Vedanta is still in the early stages of fulfilling its commitments. “It is in the government’s interest for KCM to succeed because if it doesn’t, poverty levels in the towns where it operates will rise,” he said. “Our focus is on the multiplier effect—when the mine thrives, jobs increase, councils and water utility firms are paid, and services improve.”
The minister also urged KCM’s management to honor its agreements with the government, accelerate corporate social responsibility (CSR) projects, and increase business opportunities for contractors and suppliers.
KCM Chief Operating Officer Malcolm Mewett provided an update on production challenges and recovery efforts since Vedanta resumed control. He acknowledged that asset integrity issues, safety concerns, and last year’s national energy challenges had affected initial output.
However, he reported that production had been steadily increasing, with an average of 5,500 tonnes of integrated copper produced monthly between December and February.
Mr. Mewett also highlighted a significant increase in recruitment, including the hiring of 53 graduates—the first such intake since 2004. He described this as a crucial investment in KCM’s long-term future. The mine has also expanded its network of business partners for dewatering and development work at the Konkola Deep Mining Project (KDMP), which is progressing well.
On outsourcing, he clarified that KCM’s priority would be copper production, rather than directly managing the daily operations of its business partners. “A firm as big as KCM needs to focus on making copper. We don’t need to be distracted by other issues. There will also be many opportunities for training and skills transfer, and I can assure the minister that there will be no job losses,” he said.
KCM Chief Financial Officer Manish Saxena confirmed that Vedanta has been fulfilling its obligations, including the payment of US$250 million to Class 1 creditors, a partial payment to Class 2 creditors under the Creditors Scheme of Arrangement, a one-time K2,500 bonus for KCM employees, a 20% salary increment for workers, and the allocation of US$20 million for corporate social responsibility (CSR) projects.
Additionally, Vedanta has committed US$1 billion in investment over the next five years. So far, US$50 million has been injected into KCM, with an additional US$125 million planned by June. “By December 31st, we will have invested US$330 million,” Mr. Saxena stated, reinforcing Vedanta’s long-term vision for the mine.
He also noted that KCM is prioritizing contracts with Zambian-owned companies, ensuring timely payments for suppliers and contractors to sustain local economic growth.
Following their discussions with KCM’s management, the government officials met with employees, contractors, and suppliers to address their concerns and assess operational challenges.
