An introduction to the zambias debt crisis

Foil Vedanta

One of the reasons KCM was kept separate from the other subsidiaries is because it is a high earning venture, making The cost of mining to the Zambian and Ghanaian economies goes far beyond loss of profit from taxation or export value.

These agreements were leaked to NGO researchersand can be found online Vedanta KCM are currently searching for new coal to power a captive plant so that they can avoid a price hike when their agreement ends In India Vedanta has come under attack for its misleading PR campaigns.

When Vedanta bought KCM they inherited many of the concessions negotiated by Anglo American insome of which had even required new legislation or changes to existing legislation First President Kenneth Kaunda nationalised the mining companies and briefly oversaw an economic boom as high copper prices brought prosperity to the nation.

Politicians, trade unions, academics and journalists debate endlessly over the percentage of royalty or windfall tax the nation should be receiving. The agreements are guaranteed for between 15 and 20 years, and can only be changed via a process akin to changing the national constitution.

Simple surveys such as this could equally be used in Zambia to determine the accuracy of company reporting on production and export. In CSO reporttonnes of copper produced, while BoZ report— a difference of 85, tonnes.

This means demanding, or independently seeking, information on the real cost of production, and the real profit attained by companies. He declared that exports of unprocessed ore and other resources should be stopped, and value should be added to these products in Ghana.

Zambia achieved independence inand joined the IMF in One financial journalist we spoke to in Lusaka alleged that cobalt, silver and other minerals are exported undeclared in ores and waste products.

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The deal was facilitated by Clifford Chance and Standard Chartered Bank 13 one of the main bookrunners and lenders to Vedanta Resources. Lacking this crucial information, this report is based on international financial data and first hand interviews as well as other studies and documents.

If not, how much was received and what happens to the rest? The real price of copper includes the pollution of water and air caused by mining and transportation, the cost of decommissioning mines and smelters, health effects on local populations, and the depletion of the finite resource, which will not be available to future generations.

Deputy Minister of Mines Richard Musukwa suggested to the researchers of this report that Vedanta have been doing a lot of in-house trading by bringing in Indian companies as contractors. But only a few months after privatisation Anglo American claimed the mine was unprofitable and pulled out their shares again.

It aims to expose the interests behind Vedanta, their environmental and human rights abuses, and their loot of copper and other minerals from the Zambian people. Vedanta abandoned the DfID refurbished Nkana smelter in and built their own high tech smelter at Nchanga instead.

This sort of calculation should be included in the cost benefit analyses when new mines are proposed or deals struck with companies. We will refer to the latter two later in this report, and will look at the former now. So there is no clarity within Zambia on the actual levels of production or export of metal.

This report uses the best available sources from within and out-with the industry to inform and widen the debate around copper mining in Zambia, focusing on the activities of Konkola Copper Mines KCMa subsidiary of Vedanta Resources. The relevance of royalty was challenged by Indian courts in during a dispute over low royalty and other rental rates for granite mining.Download-Theses Mercredi 10 juin 21st January In December Foil Vedanta activists made a trip to Zambia to investigate the operations of Vedanta subsidiary Konkola Copper Mines (KCM), Zambia’s biggest copper miner, and to make links with grassroots movements, academics, journalists and those in the political system who may be questioning the unjust terms .

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An introduction to the zambias debt crisis
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