KCM won’t close – CEO

KCM CEO Steven Din

Konkola Copper Mines (KCM) says it will not shutdown it mining operations despite the challenges the mining sector is facing in the country.

Speaking during a media breakfast in Lusaka this morning, KCM Chief Executive Officer Steven Din says the mining company is committed to preserving jobs at its mining operations.

Mr. Din however, states that KCM is currently operating at a loss as a result of operating costs that have exceeded production costs.

He adds that labour costs is another challenge the mine is facing considering that it has maintained its workforce despite rising operating costs and low copper prices.

Mr. Din points out that other challenges the mine is facing are power outages following the 30% power cuts announced by the Copperbelt Energy Corporation, reintroduction of corporate tax, VAT refunds among others.

And former Economics Association of Zambia (EAZ) President Isaac Ngoma says the mining sector is hard pressed thus government should support the sector to navigate the turbulent times.

Mr. Ngoma says government should also treat the mining sector as a stabilizing sector by keeping the mines operationally viable.

He adds that there is also need to accelerate economic diversification from depending on the mining sector to other sectors of the economy.