Anxiety grips Chingola over KCM limbo

Resident of Chingola have complained against the continuous uncertainty surrounding recent government intervention and subsequent liquidation of Konkola Copper Mine (KCM). 

In an interview with Zambian Eye on July 31, the residents said the dispute between KCM and Government needs to be urgently resolved as the standoff is causing many investors and contractors to be uneasy and fail to employ Zambians on permanent basis knowing that government has not yet finalised the liquidation process. 

“Government needs to address this issue regarding the liquidation as soon as possible. There is a lot of uncertainty regarding who is to take over as investor and that is causing a lot of instability even to the contractors.  There are some contractors who are even thinking of leaving,” James Kosamu said in an interview. 

Kosamu, who spoke on behalf of the residents, made it clear that the people of Chingola want Vedanta Resources gone in the shortest possible time but have also rejected any attempt to bring Chinese on the table as new investors to take over from Vedanta. 

“There is no way the residents of chingola can accept such mediocre issue of brining Chinese. In fact we are growing impatient and angry over the delay in executing the liquidation. We are now getting affected by the same liquidation because many people are now scared of coming to chingola. Government must sort out this soon,” Kosamu said as scores of residents ululated in unison in support of his sentiments. 

Another resident, Maimba Mwangala, said he has been a resident of Chingola since 1972 and that the current sufferings being experienced are beyond comprehension.

Mwangala said the challenges in the mining sector will impact negatively on other sectors if the situation is not harmonised in time. 

In May, Government through its investment arm ZCCM-IH, the minor shareholder with 21% shares in KCM, commenced liquidation proceedings before the Lusaka High Court and a provisional liquidator in the name of Milingo Lungu was appointed to wind up the mining firm. 

But recently, the South African High Court ruled that KCM and ZCCM-IH must subject their differences to an independent arbitrator as provided for in the shareholders’ agreement. 

However the Zambian Government through the Minister of Mines announced that Zambia cannot respect a ruling by a foreign court because it is a sovereign nation.

Meanwhile, Attorney General Likando Kalaluka said he will expedite the process of challenging the South African High Court ruling and declare it unconstitutional.