Vedanta Resources has promised to increase investment in Zambia’s Konkola copper mines (KCM) and launch a number of community-based initiatives to re-regulate a local company, according to a company letter sent to the government. The former Zambian government placed KCM in the hands of mediator MilingoLungu in May 2019, sparking an ongoing legal dispute with Vedanta Resources, the parent company of KCM.
The government has accused Vedanta of failing to comply with the terms of the license, which include a guaranteed investment. Vedanta has repeatedly denied that KCM violated its license terms.In a leaked letter to Mining Minister Paul Kabuswe, verified by a local company official, Vedanta chief executive Sunil Duggal said the company was committed to investing billions of dollars in developing major mines and other infrastructure to grow KCM production. .
“The above Vedanta obligations will be included in the Framework Agreement between KCM, Vedanta, ZCCM-IH and (government),” reads a May 5 letter.ZCCM-IH is a state-owned mining company.
Duggal said the long-running dispute between Vedanta and the government did not benefit any KCM stakeholders and needed to reach a mutually beneficial solution. Kabuswe and Presidential Spokesman Anthony Bwalya could not be reached for comment.Vedanta was committed to paying KCM providers, especially small suppliers who owed up to $ 220 million at the time of the appointment of the Provisional Liquidator, Duggal said in a letter.
“This agreement will be reviewed twice a year by the private sector to ensure that all parties comply with their obligations under the Framework Agreement,” reads the letter, copied to President Hakainde Hichilema. Vedanta Zambia’s Director of Communications, MasuzyoNdhlovu, said the letter was sent as a result of the Minister of Mines’ comments on the circumstances under which KCM could be returned to Vedanta.
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