Vedanta offers Zambia investment commitments in return for copper-mine control

div classBodysc17zpet90 cdBBJodivpLUSAKA Reuters – Vedanta Resources has offered to step up investment in Zambias Konkola Copper Mines KCM and implement several social responsibility programmes if it resumes control of the local firm, a company letter sent to the government showed.p

pZambia‘s previous government put KCM into the hands of liquidator Milingo Lungu in May 2019, triggering an ongoing legal dispute with Vedanta Resources, KCM’s parent company.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe government accused Vedanta of failing to honour licence conditions, including promised investment. Vedanta has repeatedly denied KCM broke the terms of its licence.p

pIn a leaked letter addressed to Mines Minister Paul Kabuswe, the authenticity of which was confirmed by a local company executive, Vedanta chief executive Sunil Duggal said the company is committed to investing an additional 1 billion towards capital mine development and other infrastructure to boost KCMs output.p

p“The above commitments by Vedanta will be included in a Framework Agreement to be entered into between KCM, Vedanta, ZCCMIH and the government,” the letter dated May 5 reads. p

pZCCMIH is the governments mining investment company.p

pDuggal said the protracted dispute between Vedanta and the government was not benefiting any of KCMs stakeholders and it was necessary to quickly reach a mutually beneficial solution.p

pKabuswe and Presidential spokesman Anthony Bwalya could not immediately be contacted for comment. p

pVedanta was committed to paying KCM suppliers, specifically small suppliers owed up to 220 million at the point the Provisional Liquidator was appointed, Duggal said in the letter.p

pThe company also committed to increase salaries by 20 across the board.p

p“The agreement will be auditable on a biannual basis by an independent firm to verify all parties compliance with their commitments under the Framework Agreement,” the letter, which is copied to President Hakainde Hichilema, reads.p

pVedanta Zambia Corporate Communications Director Masuzyo Ndhlovu said the letter was sent in reaction to comments by the mines minister regarding the conditions under which KCM could be returned to Vedanta.p

p“Our group CEO gave an outline of the conditions for Vedantas return to KCM Plc. The content is authentic and was addressed to the minister,” Ndhlovu told Reuters.p

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pp Reporting by Chris Mfula Editing by Kirsten Donovanp

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