Chief government spokesperson Dora Siliya has said the government’s decision to liquidate Konkola Copper Mines was only meant to get Vedanta Resources out and not to shut down the mine.
Siliya, the information and broadcasting minister, said government was very confident that other investors would take over the running of KCM despite Vedanta insinuating that the move to liquidate the mining company would scare away business people.
She said this during her weekly briefing at her office today (Wednesday).
“Government is confident that other investors will come up to invest in KCM after Vedanta has left. Under the custody of Vedanta, KCM had virtually ground to a halt, leaving government with no option but to end the business partnership with the company in order to safeguard the interest of the company and that of the Zambian people,” Siliya said and further disclosed that Vedanta owes government K3 billion in taxes compared to K1.9 billion that the state owes the company in VAT refunds.
“Vedanta owes K3.01 billion in tax assessments to the people of Zambia while government owes Vedanta K1.9 billion. The figures tell you who is owing more than the other,” Siliya said.
She said the aim of the liquidation of KCM is purely to end the business partnership with Vedanta and allow government, through ZCCM-IH, to look for another investor with whom to continue running the mine.
“Let me make it clear that the aim of the liquidation is not to shut down the mine but to end the partnership with Vedanta so that we save the interests of the Zambian people in their asset hence the appointment of a liquidator to oversee the running of the company before a new investor is found,” said Siliya.
On the high mealie meal prices, she assured of a likely reduction as the Food Reserve Agency continues to offload its stock on the market.
Siliya further said this year’s maize harvest would also trigger a further reduction in mealy meal prices.
A 25 kilogramme bag of breakfast mealy meal is now being sold at over K100 in most outlets in Lusaka and across the country. Far flung areas have been the worst hit by the price jump.
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