Lusaka | Friday
ZAMBIA’S major mining company, Konkola Copper Mines (KCM), could face closure if its main shareholders, Anglo American Corporation (AAC) of South Africa, withdraw from the venture, the companies said on Thursday.
Anglo American, which bought off Zambia’s major mining assets in March 2000, said in a statement that it was considering pulling out of the investment due to losses and the drastic fall of copper and cobalt prices on the international market.
“The shareholders of KCM are currently considering all available options, including sale, transfer of the assets on a going concern basis, or closure in a socially and environmentally responsible manner,” a statement by Anglo-American said on Thursday.
Mines in Zambia are the second-biggest employer after the public service, with about 10 000 full-time staff and 4 000 constructors.
Anglo American chief executive Tony Trahar said the action by his company “has been a difficult and deeply regrettable decision for all involved.”
“ACC will play its part energetically in working with all parties including the Zambian government to find a way forward,” said Trahar in a statement.
A KCM steering committee, which includes Zambian government officials, has been formed to study the impact of ACC’s decision and to explore all options available.
“KCM wishes to inform the general public, its suppliers, its employees and other stakeholders that KCM will be making every endeavour, in the meantime, to continue its operations with minimum disruption,” a statement from KCM said.
The Zambian mines, whose majority shareholders was the Zambian government were sold in a controversial manner to ACC in March 2000. Most Zambian economists, including lawmakers had objected to the sale, saying it was not carried out in a regular manner.
Zambia’s mines contribute more than 30% to the country’s gross domestic product. The southern African country is a major producer of copper. – AFP
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