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Vedanta Hails E-Government for Favorable Investment Climate in Zambia |
| Source: |
steelguru.com |
| Source Date: |
Saturday, November 20, 2010 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
Zambia |
| Created: |
Nov 22, 2010 |
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Vedanta Resources Plc, owners of Konkola Copper Mine unit in Zambia has
hailed the government for the favorable investment climate in the
Southern African nation that has attracted reputable ventures including
world renowned mining companies.
Mr Kishore Kumar CEO of KCM said that the favorable investment climate
created by Government is attracting many foreign investors and that as a
result of the policies and investment climate many investors including
KCM were considering Zambia as their second home.
Mr Kumar said that the listing of KCM on the London Stock Exchange was
as a result of the efforts from various stakeholders as well as the
investment climate in the country. What needed to be realized was that
the listing on the London Stock Exchange was coming seven months after
the completion of phase 1 of the Konkola Deep Mining Project in
Chililabombwe.
He said that the phase 2 of the project was anticipated to be completed
by 2012 and once completed; the output for ore would rise to 7.5 million
tonnes per annum from the current 2 million tonnes. Other projects that
were being undertaken by KCM include the Chingola Refractory Ore
project another concentrator and the development of the Upper OreBody to
be situated in Chingola.
Mr Kumar said that the mentioned projects and others were costing KCM
nearly USD 2 billion because the objective was to add value to primary
products of copper and cobalt. So far, these projects have extended the
lifespan of the mine significantly they have made KCM the largest
private sector employer in Zambia with over 400 fresh graduates taken on
in the last 3 years.
He said that the listing of KCM on the market was an indication that
Zambia was back on track as Africa’s largest producer of copper. The
development would provide an opportunity for ordinary citizens and KCM
employees to buy shares and play a role in the way the mine was run. He
added that with the investment that has gone into KCM in the last 5
years, we believe that the listing on the London Stock Exchange will
unlock the company’s true market and economic value which is hidden.
Mr Jacob Mwanza senior director of the board said that the listing on
the stock exchange would contribute to the growth of the country’s
economy as well as enable Zambians own shares in KCM. Zambia would not
only be known for mining activities but the country would be known
internationally thereby attracting investments in others sectors.
Mr Alfred Lungu board chairperson Zambia Consolidated Copper Mining
Investment Holdings IH said that KCM was a major mining investor in the
country and the listing would enable Zambia reach some of the set
targets in mining. The listing was a welcome development that would
result to Zambia being known to the rest of the world.
Mr Patrick Chisanga KCM advisory council representative said that the
listing was a joyous moment to the Government, KCM and Vedanta
Resources. The move by KCM to consider listing on the London Stock
Exchange and generate USD 1.1 billion to boost operations and meet
debtor obligations before considering listing on the Lusaka capital
market has cheered the workers unions who believe the decision would
culminate in workers benefiting in the long run.
Mr Rayford Mbulu president of mine workers Union of Zambia said the
listing of the shares on the London bourse by KCM was welcome as it will
help empower many Zambians. The decision by KCM will provide an
opportunity to every Zambian to be part owners of the mining company.
Mr Mbulu hoped the miners will be given a lifetime opportunity to buy
shares in the company. It was important for mining company to come up
with schemes aimed at empowering Zambians. We would like to commend
Konkola Copper Mines for listing its shares on the London Stock
Exchange. We are pleased because the move will go a long way in
empowering Zambians and our members. They will have a chance of buying
shares in the company. It is important that mining companies continue
coming up with initiatives aimed at motivating their members.
He said that the move will allow members of the public to have a say in
the daily operations of the mine and urged Zambians to rally behind KCM
in its quest to implement policies meant to enhance development in
communities. KCM will now be obliged to publicize its operations and the
company has opened up for scrutiny and creates a sense of ownership
among its workers.
Mr Mundia Sikufele president of National Union of Miners and Allied
Workers welcomed the decision by KCM noting that the move will give
Zambians an opportunity to have a say in the running of the company. He
however, said his union is still studying the situation but hopes the
intention of KCM to list its shares is meant to empower Zambians in
different ways.
Mr Muna Hantuba board chairman of Securities and Exchange Commission
said that the listing is an exciting opportunity for the Zambian capital
market. This is a very good opportunity and having dual listing with
the LuSE is first class for the Zambian capital market. He said that
government, through ZCCM-IH has a fair representation which will in turn
give money back which can be re directed to other investment
opportunities and expenditure lines in social sectors for the benefit of
the country. The listing of Konkola Resources Plc is expected to
attract a lot of institutional investors, individuals and corporations.
Ms Beatrice Nkanza GM of Lusaka Stock Exchange said that the listing of
Konkola Resources on both London Stock Exchange and LuSE will boost the
local stock market and create more visibility as more investors look at
the local market differently.
Ms Nkanza said that the listing will definitely be a boost because KCM
is a global company, and for them to list at LuSE, they are a company
worth something. There is need to sensitise local investors on the
benefits of them buying shares in Konkola Copper Mine as they extend
their shares to Zambians on the local market.
He said that it is encouraging to see a number of Zambian companies
listing on the international stock market. ZCCM-IH chairman Alfred Lungu
said the intended public offering of KR is a welcome move to ZCCM-IH
plc. KCM is one of the major investments on the portfolio of ZCCM-IH and
therefore, the listing of its holding company will enhance ZCCM-IH’s
value.
He added that we anticipate that the listing will greatly impact on KCM
and accelerate development programs to enable the company achieve its
immediate targets of increasing production and reduce unit costs.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
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Vedanta Hails E-Government for Favorable Investment Climate in Zambia Vedanta Resources Plc owners of Konkola Copper Mine unit in Zambia has hailed the government for the favorable investment climate in the Southern African nation that has attracted reputable ventures including world renowned mining companies
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