VEDANTA COMMENCES FUNDING TO KCM

Vedanta Resources has commenced funding to Konkola Copper Mines -KCM- and has disbursed its first $25 million for employee salaries, contract labour as well as for other critical services needed to maintain the integrity of the asset.

Vedanta has deployed a technical team at KCM to work together with the current management to ascertain the state of the asset, aimed at ensuring that the business is prepared for operations once Vedanta takes over upon the conclusion of the scheme of arrangement that is before the court.

Once the scheme of arrangement has been agreed upon with the creditors, and court cases withdrawn, the KCM provisional liquidator will vacate her office after the liquidation case is discontinued in the high court and will hand over the company to Vedanta.

Vedanta Zambia Director of Corporate Communications Masuzyo Ndhlovu has confirmed the development to Phoenix News saying this will effectively mean the liquidation process coming to an end and that the KCM Board of Directors will then be reinstated or reappointed by both Vedanta and ZCCM-Investment Holdings who are shareholders of mine.

Mr. Ndhlovu explains that following the appointment of the board of directors, Vedanta will then work to implement the 20% salary increment to all direct KCM employees, offer a once-off K2,500 across-the-board award to all direct KCM employees while management will begin to report to the Board of Directors for policy decisions.