Message Mer 25 Jan 2017 14:25

KCM told to devise a plan

Minister of Mines Christopher Yaluma has given Konkola Copper Mine-KCM- management up to next week to submit a comprehensive plan on how the mine hopes to clear its internal and external obligations.

Mr Yaluma says government will not assist KCM if it continues giving conflicting information.

The Mines Minister has also cast doubt on KCM’s ability to attract external funding and later on clear its debt.

The Minister said this after meeting KCM Chief Operating Officer Mark Munroe in Chingola.

This was after Mr Munroe informed the Minister that the mining firm is broke, hence its failure to meet its debt obligations.

Mr Munroe said the firm has since engaged parent company Vendetta in India for possible external funding to clear its outstanding debt.

He said he is optimistic that KCM will be bailed out by its parent company adding that the external refinancing will be done in two batches.

Mr Munroe said KCM is in severe financial doldrums with a staggering debt of over One billion U.S dollars.

Meanwhile, Mr Yaluma has disclosed that KCM is not safe for mining operations.

He said the firm has stopped buying spares for its underground equipment.

Mr Yaluma said the safety of miners at KCM is under threat owing to what he termed as the unprofessional conduct of management.