Maravi

KCM hopes for emergence of stable national leadership

KCM hopes for emergence of stable national leadership
By Mutuna Chanda in Chingola and Mwila Chansa in Kitwe
Sunday August 31, 2008 [04:00]

KONKOLA Copper Mines (KCM) has said it is hoping for the emergence of a stable leadership that will ensure consistent policy regime to take over from late President Levy Mwanawasa. And Millers Association of Zambia (MAZ) vice-president Peter Cottan assured of continued investor confidence in the milling industry despite the current political situation prevailing in the country. KCM communications advisor Sam Equamo in an interview on Wednesday said it was important for investors to be assured of a stable economy and future.

"KCM hopes for a smooth transition and that the legacy that President Mwanawasa has left of investor friendly policies, of stability in government, of stability in fiscal policies is carried forward," Equamo said.

He said Zambia's economy was improving and that only stability would guarantee continued growth.

Equamo said there was need for Zambia to address the true cost of electricity.
He said the costs of electricity and fuel were among the major factors in KCM's production process.

"We are the largest consumers of diesel in Zambia, especially in the open pit mines," Equamo said. "At the current prices of copper, maybe we can take it in our stride but when prices go down we might have a problem.

On our part, we are trying to bring down the cost of production. Power also impacts a lot on our production process and that is why the entire economy needs to address the true cost of electricity.

If the generators of the power think that they have to increase the prices of electricity, it is up to them but we have to bear in mind the consumers of this electricity. How far do we have to go before we break the back of the consumer?"

Equamo said the new smelter at Nchanga mine in Chingola could be ready by the end of September.

Equamo said some parts of the smelter had been commissioned while others were undergoing test runs and that the whole operation would soon be ready.

Earlier, The Post was taken on a familiarisation tour of KCM operations.

And speaking in Kitwe at a press briefing on Friday, Cottan who is also National Milling managing director said investors in the industry had full confidence of the current government.

He said the government’s policies were conducive for investor climate and business, adding that he did not foresee any major changes.

Cottan also said what would determine the price of maize in the period leading to the next harvest was the cost of fuel and transport.

He noted that in the last 46 weeks, there had been two increments in the price of fuel coupled with the removal of subsidy on the commodity but the prices of mealie meal had not gone up to the same extent.

He observed that prices of mealie-meal were gradually increasing because of the increase in production costs.

On the prices of flour, Cottan said the main raw material (wheat) was bought from commercial farmers in United States dollars.

Cottan said the prices of stock feed had been affected by the deficit of Soya.

He said the estimated annual consumption of soya beans per annum was about 65,000 tonnes but that there was only an estimated 45,000 tonnes of the crop that was produced this year because of floods and shortage of the seed.

Cottan said there was need to import 20,000 tonnes to get the country through to the next harvest at the end of April 2009.

Labels: KCM, MAZ, PRESIDENCY

posted by MrK @ 4:43 AM