Five years and many legal battles later, Vedanta Resources is expected to officially take back Konkola Copper Mines (KCM) when President Hakainde Hichilema hands it over tomorrow, August 21.
Vedanta was shooed out of KCM in May 2019 by the Edgar Lungu-led Patriotic Front administration for many alleged failures. KCM was placed under a provisional liquidation that never was and ended up falling onto very hard times, with production all but ceased, a mountain of liabilities, and a long string of court cases.
While not an angel and quite unpopular, Vedanta defended its legal ownership of the mine, and after protracted court and out-of-court processes, the UPND government announced in September last year that the parties had resolved to return the asset to its rightful legal owner, subject to the fulfillment of certain conditions.
Those included the settlement of debt liabilities, committing to and funding community investments for US$20 million, and increasing workers’ salaries among others whose bill came to just shy of US$250 million. A few weeks ago, Vedanta deposited the funds into a court-administered escrow account and has been paying creditors, among them the Chingola and Chililabombwe councils, suppliers, and contractors.
Hope has returned to Chingola and Chililabombwe, whose socio-economics are heavily dependent on KCM.
When President Hichilema ceremonially makes the handover, it is expected that the mine will forthwith commence production and help turn around the outlook of the Copperbelt.
During his tour of duty, the head of state might also visit Kitwe and Mufulira to commission some Level 1 hospitals, in addition to Chingola and Chililabombwe.
