An economist, Mathews Muyembe, has urged the government to closely monitor Vedanta Resources structural changes to Konkola Copper Mine (KCM ).
Muyembe in an interview with Zambia Monitor on Saturday said the government should during the three months period put in mechanism that could make it difficult to ‘swindle’ the country .
“The government obviously by now should know who Vedanta Resources are. Reports that Vedanta wants to get US$1.5 billion from Standard Chartered Bank needs to be monitored carefully because the mining company can use KCM assets, borrow money and invest elsewhere,” he alleged.
Muyembe said the pledged investment by Vedanta should be registered while ensuring that the investor prioritizes investment in Konkola Deep Mine Project (KDMP ) .
He noted that KDMP holds the future of mining looking at the huge and high copper grades.
Muyembe advised that beyond paying local debt of around US$250 million, the mine should work on ramping up production.
Zambia Monitor reported that Mines and Mineral Development Minister, Paul Kabuswe, announced in Lusaka on Tuesday the handing over of KCM to Vedanta.
Kabuswe indicated that Vedanta pledged to pump in US$1 billion in mine development in the next five years, pay local suppliers US$250 million, K2,500 to each employee one-off and a 20 percent salary hike across the board.
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