. Dr Scott

By CATHERINE NYIRENDA and  By MAYA NTANDA –
VICE-PRESIDENT Guy Scott has said Konkola Copper Mines (KCM) needs capital injection for the company to continue operating as a viable business entity.
Dr Scott said in Parliament yesterday that the Government was of the view that fresh capital injection in the mine was the only solution for KCM to operate effectively.
This followed Patriotic Front (PF) Bwacha Member of Parliament (MP) Sydney Mushanga’s question during the Vice-President’s question-and-answer time for the Government to state the future of KCM following a number of media reports on the developments of the mine.
“We had put it to them to bring more capital in the mine, but they said if they put in money the other shareholder, which is ZCCM should also pump in, and they also gave a second option that they should be allowed to borrow from the local banks,” Dr Scott said.
He said the Government was concerned with the developments at KCM as it was taking liquidity out of the economy.
The Vice-President was optimistic that once KCM injected new capital in the business it would be viable again.
Earlier this week, KCM announced losses of US$3.3 million following the shutdown of its Nchanga concentrator due to a restriction of power to the mine by the Copperbelt Energy Corporation (CEC), because of a $44 million unpaid electricity bill.
The company also announced the flooding of its Nchanga underground mine, citing alleged further restriction of power, an allegation that CEC denied.
On Thursday, Mines, Energy and Water Development Minister Christopher Yaluma told Parliament that the problems that had befallen KCM were partly due to poor management.
The Government has also directed CEC and KCM to immediately fulfill their respective obligations to each other so that operations at the mine could return to normal.
Chief Government spokesperson Joseph Katema said CEC should resume power supply to KCM and that KCM should also meet its financial obligations to CEC.
Dr Katema, who is Information and Broadcasting Services Minister, instructed the two companies during a joint Press briefing with Mr Yaluma where he urged the two firms to normalise the situation before the end of day on Thursday.
Meanwhile COPPERBELT Energy Corporation (CEC) has restored full power supply to Konkola Copper Mines (KCM) following a commercial dispute between the two companies.
CEC Corporate Communication Senior Manager Chama Nsabika-Kalima said the company had decided to restore full power supply to KCM despite the mining giant not having fully discharging its financial obligation.
Ms Kalima expressed optimism that KCM would pay all its outstanding bills and uphold obligations in accordance with the Power Supply Agreement (PSA).
“CEC has, in good faith, decided to restore full power supply to KCM today (yesterday) in a bid to restore normal business relations despite KCM not having fully discharged its financial obligations to CEC.