Konkola Copper Mines Plc (KCM) has officially commenced payments to local authorities and other creditors under the newly implemented Creditors’ Scheme of Arrangement.
KCM Chief Financial Officer Manish Saxena emphasized the importance of prioritizing and collaboration with local communities whose land hosts the mining operations.
He stated that KCM’s commitment to paying its Class 1 and Class 2 creditors is expected to have a positive impact on the financial health of various local councils and businesses that have been awaiting their dues.
He further pledged to expedite the payment process in accordance with the guidelines set forth in the Scheme of Arrangement, ensuring that all creditors are compensated without unnecessary delays.
He added that this milestone marks a pivotal moment for KCM and its parent company, Vedanta Resources Limited, as they work to fulfill their financial obligations and strengthen relationships with key stakeholders.
As one of the local councils that have received payments from KCM, Chingola Municipal Council Town Clerk Mrs. Namukolo Kalufyanya expressed gratitude for prioritizing local authorities in the payment to creditors.
She noted that the revival of KCM translates into a revival of economic activities for Chingola marking the start of a new chapter and emphasized that a significant part of the Chingola Municipal Council is based on KCM.
Mrs. Kalufyanya explained that this entails the prompt payment of all outstanding dues for retirees, statutory obligations and service provision, which are at the core of the council’s purpose.
She further expressed her gratitude to the government for unlocking KCM and assured KCM of transparency in the disbursement of funds, emphasizing that these funds are intended for the benefit of the local community.
KCM has paid the Chingola Municipal Council Twenty-Six Million Eight Hundred and Nine Thousand Five Hundred and Fifty-Three Kwacha (K 26,809,553), the Chililabombwe Municipal Council Eight Million One Hundred Eighty Thousand Two Hundred Ninety-Eight Kwacha and Eighteen Ngwee (K 8,180,298.18), and Fourteen Million Nine Hundred Fifty-Eight Thousand Six Hundred and Fifty-Three Kwacha and Ninety-Six Ngwee to Kitwe City Council (K 14,958,653.96) respectively.
