14 February 2014

Zambia: Scott Reveals KCM-Govt Souring Relation

Photo: This is Africa
Zambia copper mine.

The love hate relationship between government and Konkola Copper Mines has continued with Vice President Guy Scot saying the mining firm may close their operations in Zambia due to huge debts they owe.

Speaking in parliament today during the Vice President's question and answer session Scott said that KCM's liabilities were in excess of US$1.5 billion.

Scott said KCM was on the brink of exiting the country but said his government will keep a tab on the mining giant.

"The KCM issue is complicated... We are keeping a very careful eye on KCM there are some very strange things that have been happening. It seems a lot of money has been taken out of the country," he said.

"It seems there are high liabilities in excess of US$1.5 billion as a Zambian company; they have not repaid their loans several times. They owe other mining companies a lot of money. There are two companies called Vedanta."

KCM and government have often clashed with their Chief Executive recently deported while the plans to fire about 2000 employees drew a lot of controversy.

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