GOVERNMENT will repossess Konkola Copper Mine (KCM) and seek a new investor to take over because it’s now clear the Vendetta Resources Group has failed to run the mining firm, Minister of Mines and Mineral Development Richard Musukwa has disclosed.
Mr Musukwa was reacting to demands by over 4,000 miners and unions for Government to repossess the mining firm following the continued layoffs.
KCM Corporate Affairs Manager, Eugene Chungu however said the mining firm would soon recapitalise and present a business plan to Government.
He said in an interview with the Daily Nation that government would act in the best interest of the Zambian people.
Mr Musukwa said government would not tolerate investors arm-twisting it when they fail to recapitalise.
“Government will study the petition by the miners and the unions. What is clear is that Vendetta Resources has failed to operationalise KGMP projects in Chililabombwe, it has failed to exploit in Chingola and has failed to pay contractors and suppliers.
“The other bad thing is that Vendetta Resources has failed to pay the workers and this clearly shows that they have totally failed,” he said.
The minister said the demand by the miners and union was genuine and that Government would take necessary action.
“We have been engaging Vendetta Resources on many occasions advising them to recapitalise the mining firm. Government has told the investor on its failure to enhance operations and this is too much now,” Mr Musukwa said.
Mr Musukwa said government had run out of patience and that it would take serious action against the investor but that did not want to see the mining firm come to its knees.
“To say the truth people are very tired with the commitments by KCM and we cannot continue listening to those commitments anymore,” Mr Musukwa said.
He said government and Zambians had lost trust in the investor. Meanwhile, Mr Chungu said that KCM was keen to improving operations at the mine.
“Our boss will next week meet the minister to present a business plan on how the investor wants to recapitalise,” he said.