The Copperbelt Trade and Development Forum (CTDF) has urged the government to expeditiously facilitate the enactment of the Extractive Industries Transparency Initiative (EITI), which has been pending since 2015, and the Mining Local Content legislative provisions.
CDTF executive director Vincent Lengwe, who commended the government and Vedanta Resources for their demonstrated commitment to return Konkola Copper Mines (KCM) to operability, said this would help to improve mineral resource governance across the mining industry and optimize mineral revenue collection.
Lengwe said KCM was not just one of the country’s largest and most strategic facilities but also Vedanta’s most profitable subsidiary, which sits on approximately 280 million metric tons of untapped viable mineral ore reserves with a life span of not less than 50 years.
He said the mine is capable of contributing about 10% of the projected national target of 3 million metric tons of copper production by 2032, hence, revamping the economy of the Copperbelt Province and the country.
KCM was officially handed back to Vedanta yesterday at a ceremony officiated by President Hichilema in Chililabombwe, more than five years after it was booted out by the previous government
Lengwe said Vedanta’s return should culminate in positive and sustained stakeholder relations.
“We wish to remind Vedanta that the remaining work-in-progress in terms of commitments is the most crucial one as it borders on the social license to operate and aspects of business and human rights within the broader framework of the ESG (Environment, Sustainability & Governance) principles,” he said.
He said the most notable was the need to ensure that the respective community development agreements for all its integrated business units at Konkola, Nchanga, Nkana, and Nampundwe are formulated in line with the provisions of the International Council on Mining and Metals community development toolkit as well as the World Bank Community Development Agreement model regulations, which should be backed by a Statutory Instrument from the Minister of Mines.
Lengwe also said that Vedanta had indicated in previous correspondence that it would align its corporate social responsibility delivery with the Community Development Fund implementation framework.
On its return, Vedanta has promised many things, including US$1 billion of fresh investments in five years, social investment worth US$20 million, and has set aside nearly US$250 million to pay suppliers and contractors, whom it has begun to pay. Other commitments include a 20% salary raise and a once-off K2,500 payment across the board to all staff.
Responding to concerns as to what the government would do if Vedanta reneged on its commitments, Copperbelt Province Minister Elisha Matambo said the investor was now dealing with a serious and well-organized government with a serious leader, hence, they would behave as expected.
