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ZCI's offer to Vedanta is betrayal - Saki

ZCI's offer to Vedanta is betrayal - Saki
By Chibaula Silwamba
Saturday November 24, 2007 [03:00]

ZAMBIA Copper Investment’s offer of its 28.4 per cent shares in KCM to Vedanta is a betrayal to Zambians, opposition United Liberal Party (ULP) president Sakwiba Sikota has said. Commenting on (Zambia Copper Investment) ZCI chairman Tom Kamwendo’s statement that ZCI will go ahead and offer its 28.4 per cent shares in Konkola Copper Mines (KCM) to Vedanta Resources Plc according to the legal agreement the Indian mining company signed when it was acquiring its 51 per cent shares in KCM, Sikota observed that the move would be against the efforts to ensure that indigenous Zambians participate in the mining sector of the country, which is the main stay of Zambia’s economy.

“The offer of 28.4 per cent shares to Vedanta by ZCI is a betrayal to Zambians because this offer comes at the time when there is a genuine cry for Zambians to be given an opportunity to participate in the mainstream economy of the country,” stated Sikota in a press release.

“The Zambian economy is still very dependant on copper and will remain so for many years to come; giving control of our copper to foreign investors will be a disaster for our economy. Most of the foreign investors do not reinvest their profits in the country but externalise the money. This is not beneficial to the growth of the Zambian economy.”

He stated that foreign companies’ loyalty was to their countries of origin and not Zambia.

“This selfish attitude for profit can only be reduced and possibly controlled by not giving majority shareholding to foreign investors,” Sikota stated. “Some workers are likely to lose their jobs if Vedanta is given the 28.4 per cent shares which will give them a dangerous 79 per cent 79.4 per cent control of KCM. The government should ensure that the 28.4 per cent shares in KCM are sold to indigenous Zambians.”

He advised the government to ensure that ZCI does not sell its shares to Vedanta.

Kamwendo said: “ZCI’s shares in KCM are being offered to Vedanta rather than being sold via the Lusaka Stock Exchange (or sold in any other way) because that is the provision in the legal agreement that was reached at the time that Vedanta was acquiring its current 51 per cent share-holding in KCM.”

Currently Vedanta Resources Plc has 51 per cent shares in KCM, ZCI 28.4 per cent and ZCCM Investments Holdings 20.6 per cent.

Labels: KCM, SAKWIBA SIKOTA, VEDANTA, ZCCM-IH, ZCI

posted by MrK @ 5:51 AM