Kumar says he'll return on Nov 28
By Chiwoyu Sinyangwe
Tue 12 Nov. 2013, 14:00 CAT
KCM chief executive officer Kishor Kumar says he will return to Zambia on November 28. And mines minister Christopher Yaluma has revealed that Konkola Copper Mines has not been fulfilling its tax obligations to the Zambia Revenue Authority.
In an internal memo to workers in the company, Kumar said he had flown to attend to Zinc International business in South Africa and would return at the end of this month.
"During this period, Mr David Kaunda who is vice-president human capital management will act in the position of chief executive officer, and all decisions will be jointly taken with the EXCO members," Kumar stated in the November 8 memo.
"Please accord him all the due cooperation during this period."
Kumar, who is currently chief executive officer for Zinc International, functions as chief executive for Base Metals (Africa), which includes control of KCM operations and copper mines of Tasmania (CMT) in Australia.
Kumar "voluntarily exited" the country last Thursday after the government pursued him over his remarks that President Michael Sata was full of political rhetoric.
This was after President Sata directed that KCM halts the planned retrenchment of over 1,500 workers as the company planned to migrate to mechanization and automation to cut down on labour costs at one of the most labour-intensive mines in the country.
And in a separate interview, Yaluma said the government would constitute a team of experts from ZRA, Ministry of Finance and Ministry of Mines to probe KCM which was struggling.
He said KCM was currently failing to meet its production targets as well as tax obligations to ZRA.
"Based on the discussion with KCM and ourselves, this team we will constitute is for specific things we want to find out and also KCM, they want to prove to us something that they have been telling us," said Yaluma.
"It's totally agreed by both parties and that is what we want to dwell on.
They have not been honouring or fulfilling their targets and they lack capacity to pay. They are in arrears with ZRA. They are in operations but they are not performing well."
Labels: CHRISTOPHER YALUMA, DAVID KAUNDA, KCM, KISHOR KUMAR, POLLUTION, TAX EVASION, ZRA
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KCM has insulted govt - Musukwa
By Misheck Wangwe in Kitwe
Mon 11 Nov. 2013, 14:01 CAT
MINES deputy minister Richard Musukwa says KCM management has persistently insulted the intelligence of the government by giving flimsy and inconsistent reasons over its intentions of mass layoffs.
Meanwhile, ZEMA is investigating KCM and other mining houses on latest reports of pollution of the Kafue River, the Mwambashi stream and other sources of water supply on the Copperbelt.
The government has since announced plans to constitute a team of experts to investigate KCM's operations.
In an interview in Kitwe, Musukwa said the investors in KCM had seriously disappointed the government with their behaviour and the manner in which they wanted to blackmail the government through maneuvers to retrench over 1,500people.
"They gave reasons for their latest intentions to layoff our people as automation, mechanisation and dwindling grades of the ore. The dwindling grades of the ore are a common scenario in a mining operation and it cuts across all mining companies. Any best mining operation of a world class nature like as KCM as it claimed, should be able to plan and organise operations at the lowest price and the lowest grade of the metal and that's how the copper business is managed because it is very unpredictable," Musukwa said.
"These reasons that KCM is advancing today, in case they have forgotten, are different from those they gave five months ago when they wanted to retrench 2,000 people."
He said five months ago, KCM did not mention anything to do with its plans to take the route of automation, mechanisation and challenges of dwindling grades but rather gave a set of different reasons such as fluctuating copper prices and challenges to appreciate various tax incentives that the government had put in place.
Musukwa said KCM would not be allowed to manipulate Zambians over their own mineral resources.
"People have not been very productive recently because this KCM have brought fear that they will lose jobs. People are operating as if they have no jobs, their morale is dampened. Many Zambians world over are known to be hardworking and they account for their presence at the place of work. Our wish has been that KCM must drive our people to the level of production of world class nature," Musukwa said.
Meanwhile,deputy minister of labour Rayford Mbulu said the government was managed on the premise of laws and it would not allow people to be condemned to misery by KCM and its intentions of mass layoffs.
Mbulu said KCM disrespected the government from the time it announced its intentions to cut jobs of about 1,529 mineworkers through the media without even communicating to the state.
"This government is premised on laws and these laws must be respected. What we have gotten from KCM is embarrassing to say the least. They (KCM management) must know that the employment and labour relations Act Cap 268of the laws must be respected to the latter.
And KCM breached this when they chose to go to the media before they could even engage government," said Mbulu."Acts of intransigency from KCM will never be tolerated."
KCM chief executive officer Kishor Kumar announced at a press briefing in Kitwe a week ago the company's intentions to lay off 1,529 mineworkers.
Kumar cited dwindling copper ore and the company's new route of mechanization and automation as major reasons for the layoffs.
President Michael Sata, however, warned Kumar that he would be sorted out if he attempted to fire even a single employee and that KCM's operating license would be revoked if the mining company wanted to blackmail government with mass layoffs following the decision to stop the export of copper concentrates.
On Wednesday, it was learnt that KCM had in fact terminated employment of about 76 employees, a situation that angered government.
Labour minister Fackson Shamenda later told journalists in Lusaka that government was extremely disappointed and annoyed with Kumar who had dismissed President Sata's warning that the government would revoke the company's license if it fired even one worker, as mere rhetoric.
On Friday, Kumar left the country in unclear circumstances before he could be taken to task by the government over his statement against President Sata's directive.
Vedanta Resources, the majority shareholders in KCM, have since appointed a KCM vice-president for Human Capital Management David Kaunda to act as chief executive officer in the absence of Kumar.
And in an interview yesterday, Zambia Environmental Management Agency northern region manager Patson Zulu said the matter was being seriously investigated and KCM had already been written to.
Minister of Local Government and Housing Emerine Kabanshi on Thursday warned Konkola Copper Mines over its alleged pollution of the Kafue River, saying it had resulted into the closure of two water treatment plants for Nkana Water and Sewerage Company.
"We have recorded such cases and I can say it's not only KCM, we are also investigating other mining companies, the polluters of the surface water bodies on the Copperbelt. Apparently it's not just the Kafue River but also other streams critical to human life. We have identified a number of firms that will be summoned over this pollution and we are meeting them because this is a matter of urgency and it's very serious," Zulu said.
He warned that mining companies that were culprits of the pollution would be taken to court and risked having their plants shut down for breaking the law.
Zulu said over KCM and allegations of pollution, ZEMA was closely working with the Department of Water Affairs, National Water and Sanitation Council as well as Nkana Water and Sewerage Company to establish facts and the extent of pollution.
"For KCM, we will not give more details because the matter is being investigated and we will be pre-empting the minister's statement. It's only fair that we leave it to the minister and details will be availed to you at a later stage," Zulu said.
At a press briefing in Lusaka last week, Kabanshi warned KCM that the government would deal with it firmly if it fails to stop the excessive pollution levels which had affected Mwambashi dam in Kalulushi and Mutipa stream in Chingola on the Copperbelt Province.
Kabanshi said the government will be left with no option but to shut down KCM's operations at their tailings leach plant until the company puts up remedial measures to protect people's lives.
She further said the government would not allow a situation where mining companies continue to deliberately fail to meet environmental regulations.
Kabanshi, who on Saturday visited NWSC in Kitwe, directed KCM to take its environmental protection obligations seriously and stop discharging mining effluents carelessly.
Labels: DAVID KAUNDA, FDI, KCM, RICHARD MUSUKWA, TAX EVASION
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Maguswi bemoans slow growth of aquaculture
By Fridah Zinyama
Wed 17 Feb. 2010, 04:00 CAT
DEPARTMENT of fisheries director Charles Maguswi has said there is need to overcome the slow growth of the aquaculture (fish farming) sector in the country, as it has great potential for reducing poverty in the country.
And Aqua-Farmers Advisory Group chairperson David Kaunda said the fish farming sector had been having difficulties accessing credit since it was a relatively new sector in the country.
During the launch of the project ‘Support to Zambian’s Aqua Farmers’, Maguswi said currently, Zambia was only producing about 7,000 metric tonnes of fish, which was way below its production potential.
“The country produces about 80,000 metric tonnes of fish from its natural water resources and this amount could be easily surpassed by the aquaculture sector,” he said. “This will only happen once the challenges the sector is facing are adequately addressed.”
Maguswi said there was also need to ensure that fish farmers produced enough fish so as to realise some profits from the sector.
And Kaunda added that the fish farming sector has had some problems in accessing funds since lending institutions normally prefer to lend to the agriculture sectors which they are more knowledgeable of.
“We are hopeful that the situation will now change since more and more information is being availed about the aquaculture sector,” he said.
Kaunda said support to the fish farming sector should be well coordinated if the sector is to grow.
“In the past, support to the fish farming sector has been fragmented and this has contributed to its poor development,” he said. “It is also important for both government and the private sector to work together to ensure the growth of this sector.”
Fish farming is considered a good means of reducing poverty in rural areas as it can be easily done if farmers follow all requirements.
It can also be done on a community basis, therefore empowering an entire community.
Kaunda said it was also important for the government to quickly deal with land use conflicts which had been arising as farmers in rural areas grow their fish.
“Government should also ensure that they deal with the licensing issue which has been affecting the growth of the sector. There is so much red tape in registering a fish farming company and this process has been depleting people’s resources,” Kaunda.
Labels: AQUA-FARMERS ADVISORY GROUP, AQUACULTURE, CHARLES MAGUSWI, DAVID KAUNDA
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