Zambian gov't gives mining firm ultimatum to produce plan on debt clearance
Xinhua, January 25, 2017 Adjust font size:
The Zambian government on Wednesday gave Konkola Copper Mines (KCM), a unit of London-listed Vedanta Resources, a one-week ultimatum in which to submit a plan on how it hopes to clear both its internal and external debts.
The mining firm has been facing challenges and owes various suppliers and contractors huge amounts of money. Last month, its creditors demonstrated at its premises demanding payment.
Minister of Mines and Minerals Development Christopher Yaluma said it would be difficult for the government to help the mining firm if it continued giving conflicting information.
The Zambian minister was speaking when he met the mining firm's chief operating officer Mark Munroe in Chingola town on the Copperbelt Province, according to state broadcaster, the Zambia National Broadcasting Corporation.
Earlier, the mining official said the firm was broke hence its failure to meet its debt obligations.
The firm, he said, has since engaged its parent company in India for possible external funding to clear its outstanding debt and expressed optimism that the firm will be bailed out by the parent company.
The official added that the firm is facing financial challenges, with a staggering debt of over 1 billion U.S. dollars. Endit