Government has accused Konkola Copper Mines (KCM) of creating a cartel after recently terminating the contract of a Brazilian firm U & M.
It is reported that KCM terminated U & M Contractors so that it can sign an Indian extraction firm.
It is believed that Vedanta, which owns over 70 percent shares in KCM, wants to create a cartel with other Indian companies to avoid paying taxes.
Mines deputy minister Richard Musukwa has since warned that government will not allow KCM to engage an Indian company after getting rid of U & M Contractors.
Musukwa urged KCM to behave properly and employ Zambians that were looking for employment in the mining sector.
“What is now very clear is that each mining houses want to employ or give contracts to countries of their origin and it is unacceptable. As government, we would like to ensure that these cartels come to an end,” he said.
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