Fight Vedanda over KCM, says Sichinga
Fight Vedanda over KCM, says SichingaBy Chibaula Silwamba
Sunday July 22, 2007 [04:00]
FORMER Kafue member of parliament Robert Sichinga has urged Zambians to stand up and say no to Vedanta Resources Plc’s manoeuvres to take the 28 per cent more shares in Konkola Copper Mines (KCM). Commenting on reports that Vedanta Resources Plc was close to increasing its shareholding in KCM
They by a further 28.4 per cent following the closure of arbitration proceedings with Zambia Copper Investment (ZCI), Sichinga said if Vedanta would be allowed to acquire the shares it would have more control of KCM than any other shareholder.
“Giving more shares to Vedanta will leave Zambia with very limited powers to control the operations of the mine,” he said. “This is an issue of concern not only to the government but all Zambians.”
He said Vedanta took advantage of acquiring more shares in KCM because of poor negotiation on the part of Zambian negotiators.
“Vedanta doesn’t bring anything to Zambia. Vedanta maintains their accounts in the UK but government doesn’t care about that,” Sichinga said.
“But we must stand up and say we don’t want this. We have every reason to be concerned.”
He said Zambians should benefit from mineral resources instead of leaving them in the hands of foreign investors. Sichinga said in other countries, there was partnership between foreign and local investors. Vedanta is currently the largest shareholder in KCM with 51 percent, ZCCM Investment Holdings plc 20.6 per cent and ZCI has 28.4 per cent.
The Zambian government sold 51 per cent shares to Vedanta in 2004 despite opposition from Zambian mining and economic experts. In the recent development, the prospect of the purchase of shares however is dependent on Vedanta accepting the share price to be determined after a revaluation of the ZCI by an independent investment bank.
Announcing the outcome of the arbitration on Tuesday – July 17 – over the interpretation of Vedanta’s call option, ZCI through its investment bank, Rand Merchant stated that Vedanta would exercise its option to purchase the shares once re-valued.
Labels: DEVELOPMENT AGREEMENTS, KCM, MINING CONTRACTS, ROBERT SICHINGA
posted by MrK @ 7:54 AM
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