Musokotwane advises foreign mining firms to support local enterprises
By Chiwoyu Sinyangwe and Kabanda Chulu
Thu 18 Nov. 2010, 04:00 CAT
FINANCE minister Situmbeko Musokotwane has advised foreign mining firms that the only way to protect their investments in the country is by making their operations relevant to local communities.
During Konkola Copper Mines (KCM) Plc’s post-Initial Public Offer luncheon, Dr Musokotwane said there was need for mining firms to give business lines to local entrepreneurs and at the same time pay taxes to the Treasury.
KCM, the country’s biggest mining operation is dual listing on the London Stock Exchange and Lusaka Stock Exchange under a new company called Konkola Resources in a transaction the company expects to raise US $1.1 billion to boost its operations.
Although the exact date for listing has not been set, sources close to the transaction have revealed that Konkola Resources would be listed in London before the year end, “soon after,” in Lusaka.
Dr Musokotwane who praised KCM for listing, in a move that would allow Zambians to own shares in the mining firm which projects to raise copper output to 400, 000 metric tonnes by 2012,
[At present prices of $7,000 per tonne or more, that is $2.8 billion. - MrK]
said there was need for the mining firms to remove perceptions that mining firms were reaping from communities they operate in without paying back.
“You can have all laws in this country to protect this industry, but the most important thing to protect this investment is to make yourself relevant to the community,” said Dr Musokotwane.
Earlier, KCM chief executive officer Kishore Kumar said the listing provided Zambia with a useful marketing tool to attract many other global players to invest in other sectors in the country apart from mining.
KONKOLA Resources Plc, the holding company of KCM, yesterday announced intentions to list some of its shares on the London and Lusaka Stock Exchanges with expected net proceeds of US $1.1 billion to be channelled towards its capital expenditure programme and loan repayments.
In a statement that did not include share structure breakdown and when the listing will take place, the company expects the global offer to comprise an issue of new ordinary shares and the sale of existing ordinary shares to institutional investors in the United Kingdom and elsewhere.
Additional ordinary shares of up to 15 per cent of the global offer are expected to be made available pursuant to an over-allotment option. All offer shares will be subscribed for, or purchased, at the offer price.
The company intends to pursue a listing on the Lusaka Stock Exchange and to offer new ordinary shares to Zambian investors by public offering shortly following admission as well as making an allocation of shares to employees.
Commenting on the matter, ZCCM-IH chairman Alfred Lungu said the initial public offer (IPO) would ensure Zambian investors making direct investments in the company.
“This first listing of a Zambian mining company is an important milestone in the history of Zambia , a development based on the substantial investment already made in KCM’s operations. The listing will help unlock value in our portfolio and encourage further investment in Zambia ,” stated Lungu.
Labels: ALFRED LUNGU, KCM, MINING, SITUMBEKO MUSOKOTWANE, SUPPLIERS, ZCCM-IH
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KCM backtracks on suppliers quality management system
By Kabanda Chulu in Kitwe
Thu 25 Mar. 2010, 04:00 CAT
KONKOLA Copper Mines (KCM) has rescinded its decision to compel all its suppliers to have in place quality management systems (QMS) before they can be registered for contracts.
And Kitwe District Chambers of Commerce and Industry (KDCCI) president Berry Mwango has said KCM has agreed to proposals to conduct quality certification training for selected companies that mainly feed into the production line of the mining company.
Recently, KCM wanted to extend its QMS to its vendors (suppliers) and would- be vendors in line with requirements of International Standards Organisations (ISO) 9001:2008 quality standards to which KCM is certified.
KCM had argued that it would be easier to validate compliance as the system to be implemented would be compatible with the KCM scenario as it would have demonstrated conformity to ISO 9001 quality standards thereby retaining its certification and continue to contribute positively to the national economy.
“If your organisation is not certified to the quality standard, at least one member of the organisation must be trained in QMS from a recognised institution through your own arrangement. Thereafter vendors will be allowed to trade with KCM and vendors who shall have no representative trained at the time of the expiry period will be on standby until the requirement is fulfilled and vendors seeking registration for the first time must fulfill requirements before they can be registered,” KCM stated.
But following a series of meetings with stakeholders such as KDCCI, KCM changed its mind to have compulsory certification on quality standards by all its suppliers.
In an interview, Mwango said quality should not be compromised at any cost and quality certification should be a continuous process among industry players.
“But some suppliers don’t need it. For example, it will not make sense to compulsory certify all suppliers including those who provide cleaning services or landscaping. We need certification but it should mainly apply to companies that feed into the production line of KCM or those involved in the core business of the mines like suppliers of explosives, pumps and related equipment,” said Mwango.
“In this line, we made a proposal to KCM and they agreed to conduct a certification training for about 100 companies, especially those that participate in the core business of the mines so that suppliers can perform better and KCM will benefit more. But we advise our members to enhance quality training on their own and not wait for it to be compulsory.”
Labels: KCM, QUALITY ASSURANCE, SUPPLIERS
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Govt sues supplier for undelivered computers
By Laura Hamusute
Mon 09 Nov. 2009, 04:00 CAT
GOVERNMENT has sued MA and C Suppliers, claiming a refund of K41, 242,500 being an amount for undelivered computers to the Ministry of Information and Broadcasting Services.
Government, through the Attorney General, explained in a writ of summons filed in the Lusaka High Court that on November 27, 2007, MA and C Suppliers were awarded a contract to supply and deliver four desktop computers, two scanners, four printers, three fax machines and a central processing unit all valued at K 49, 978,750.
The Attorney General further explained that the amount in question was paid in full to MA and C Suppliers after which they only delivered three fax machines and two scanners valued at K 8, 636, 250.
He disclosed that MA and C Suppliers have to date not delivered the remaining goods with no justifiable reason despite repeated requests.
Government has also sued the owner of MA and C suppliers, a Mr. A.C. Mumba.
It is against this background that government has sought the intervention of the court in the matter seeking damages for breach of contract and a refund of K 41, 242,500.
Labels: SUPPLIERS
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Don’t bribe employees to get contracts , KCM tells suppliers
Saturday, August 8, 2009, 12:42
KONKOLA Copper Mines (KCM) has assured its suppliers and contractors that no contract will be cancelled for refusing to give a bribe to any of the company’s employees.
KCM Group security manager, Ernest Mubita said suppliers and contractors should not indulge in any corrupt activities with KCM employees and assured them that no one would have his or her contract cancelled for refusing to bribe any employee of the company.
Mr Mubita was speaking yesterday at the KCM security award presentation parade held at the KCM mine club ground in Chingola.
The deserving security officers were given motorbikes, bicycles, fridges and other household goods as rewards for the good work in protecting the mining company’s property.
Mr Mubita said suppliers and contractors should help to curb corruption, thefts and other dubious activities at any division of KCM by ensuring that they reported the matter to the security agencies of the mining company.
“The evil storm called crime has invaded all business organisations with very big waves called theft, fraud, corruption, abuse, misuse, and wastage and this is why, I am urging contractors and suppliers to help us, fight these crimes, especially corruption, which is a very devastative scourge.
“I am assuring the suppliers and contractors that no one will have his or her contract cancelled for refusing to give a bribe to any of the KCM employees. We need concerted efforts to fight vices that are retrogressive to economic revival and national development,” Mr Mubita said.
He said his department would remain steadfast, strong, brave, focused and impartial in fighting crime to save the company from losing its valuable and critical property and time.
He said the good work that his team was doing, had attracted intimidation from the crime perpetrators.
“So far, four houses belonging to some of these officers were targeted and attacked between 2005 and 2009. One of the houses was blasted using petrol bombs, whereas the other was reduced to rubble by a criminal mob, majority of these officers have received both verbal and written threats due to the courageous efforts that they are putting into fighting crime,” Mr Mubita said.
And speaking later, KCM chief executive officer, Kishore Kumar said all KCM employees should ensure that every property and materials purchased by KCM was put to the intended use and should ensure that no KCM property was stolen, abused, misused, vandalised or wasted.
Mr Kumar said he was happy that security officers had always been alert and vigilant in ensuring that property of KCM was well secured and protected.
Mr Kumar said because of their alertness and vigilance, some security officers were being physically attacked or threatened by criminals.
He assured those security officers that were being threatened that the company would support and protect them, saying he had directed the Group Security manager to ensure that protection was given to all deserving officers.
“To you officers, I say congratulations and continue working even harder than before like the Group Security manager had said. The tokens you have received cannot be compared to the value of property that you continue protecting in these difficult conditions, but these are just tokens of appreciation and recognition for your exemplary performance in executing your duties,” he said.-Times of Zambia
Labels: CORRUPTION, KCM, SUPPLIERS
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KCM demands 40 % discount from suppliers
October 23, 2008
Mine suppliers on the Copperbelt have complained over the 40 per cent discount announced by Konkola Copper Mine (KCM) early this week for every order given to suppliers.
Speaking in an interview with ZANIS in Ndola today, one of the suppliers, Thomas Banda, who is also proprietor of Honanda Zambia Limited, said the move will make the local suppliers unprofitable because they bear a lot of costs in purchasing mining equipment which they supply because they order almost all the equipment from outside the country.
Mr Banda called on government to intervene on the matter to ensure that local suppliers can benefit from the mining industry.
He said the move seems to be one of the company’s ways of cushioning the impact of the dropping copper priceS on the international market and the global financial crisis on it.
Mr Banda noted that it would be unfair for KCM to directly transfer the negative impact of the business crisis to suppliers who are already struggling in business.
He further observed that the major mining companies on the Copperbelt rarely gave orders to local suppliers in preference to foreign suppliers.
Early this week, KCM announced that it will demand a 40 per cent discount for a supply orders it awards to suppliers.
And Roan Constituency Patriotic Front Member of parliament, Chishimba Kambwili, yesterday strongly condemned the demand by KCM, as it would push the local suppliers out of business.
Copper prices on the international market have continued to spiral downwards with the price standing in the range of $4,000 to about $5,000 from about $8000 in the past few years.
The drop in the copper prices coupled with the global financial crisis is likely to affect the operations of the mines and force them to make desperate operational adjustments for them to continue making prices.
ZANIS/ENDS/LNN/EB.
Labels: HONANDA ZAMBIA LTD, KCM, MINING, RECESSION, SUPPLIERS
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