KCM, a let down to local contractors

CHINGOLA Chamber of Commerce and Industry (CCCI) president Freddie Musonda has said Konkola Copper Mines (KCM) has been a let down to the local contractors and the residents in the district.

And KCM Public Relations Manager Joy Sata has said her company is committed to working closely with both suppliers and contractors to review and resolve concerns fairly and efficiently.

Speaking with The Independent Observer Mr Musonda said the chamber was overwhelmed by negative comments from its members concerning KCM.

He said KCM had run down local contractors, killing them completely while the contractors from India were doing fine and seemed not to have the problem with pricing and value of contracts.

Mr Musonda said contractors from India were increasing nearly every month as seen by the high ratio of Asian origin in the plant and in town as opposed to Zambians.

He said during Anglo-America and ZCCM, the local companies were doing fine whether they were in service provision or supply of commodities and with good market pricing.

The chamber boss said by then in the days of ZCCM and Anglo America copper prices were very low as compared to current market price.

“At the moment, doing business with the mines especially KCM under Vedanta Resources has become extremely unprofitable and it has made our local small and medium enterprises (SMEs) to fail to operate normally.

“These SMEs have commitment with the banks in terms of loaned funds and equipment but at the moment business is bad such that our members have failed to renew their membership at the chamber and to service the bank loans,” he said.

Mr Musonda said his members got loans based on previous promises of more businesses from KCM.

But the situation is that contracts have gone downward and the pricing has been trimmed to a level where members have started reducing the workforce.

He said the fact that his members had complained indicated that there was a problem.

However, Mr Musonda said his chamber would engage KCM to substantiate the complaints.

He said KCM was now being considered as a Chingola based company hence the need to give priority to Chingola based companies.

He said local companies had supported the mines even during the recession but that the mines had never put up a deliberate policy to help the same locals to grow.

The chamber president who was recently in India to attend the 29^th CII-EXIM Bank Conclave India Africa Project Partnership said the president of Confederation of Indian Industry (CII) and the Minister of Commerce from India emphacised on leveling the business playing field. 

Mr Musonda said in their speeches the duo urged Indian companies that had invested in Africa to allow the win-win situation with the locals.

He said the worst the chamber would do would be to report KCM to the international community and the CII.

And Chingola Entrepreneur Clement Bwalya said since Vedanta Resources took over KCM, the company had killed business.

Clement Bwalya

Mr Bwalya said more contractors had their contracts terminated than they were renewed.
 

“What economic development has KCM brought to the people of Chingola? Is not just terminating contracts of companies like Moolmans, MMS, JES Mining, U $ M, Twapani, Pachichi, Lochi among a few?

“So far over 2,000 plus jobs have been lost and Government is not helping in job creation in the district. Even corporate and social responsibility (CSR) for KCM is like window dressing. Mopani has less copper compared to KCM but its CSR is far better than KCM and business given to local contract is far better than our own,” he said.

He said the local SMEs were not begging for money from KCM, they were only asking KCM to give them jobs. 

Mr Bwalya said some of the local companies that had done jobs for KCM had gone more than the stipulated number of days without being paid,” he said.

He said during ZCCM era Nchanga division alone had about 18,000 employees.

And ZCCM had divisions in Nkana, Konkola, Mufulira, Nampundwe, Luanshya including Kabwe.

He said but KCM currently only about 16,000 employees in all integrated business units (IBUs).

He said the conditions of service were excellent and the company’s CSR was good.

Mr Bwalya said ZCCM was treating water, collecting garbage, maintaining roads, houses, sponsoring all sports, arts and had two mine hospitals among others.

He said there was need for the President to look into the plight of the people of Chingola.

And Ms Sata said KCM conducted business with over 1,000 suppliers and contractors and out of the number, over 700 were Zambian companies.  

“The company will only engage foreign contractors on jobs where there is no local expertise. Like all organisations, KCM continuously looks at ways to streamline its operations to ensure the company has the right resources in the right places. 

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