Konkola Copper Mines acknowledges the impact that these delayed payments is having on their suppliers’ businesses and dependents.
“A significant factor in Konkola Copper Mines’ current cash squeeze is the fact that VAT refunds due to the copper producer have been delayed by several months. Working capital is an important driver in achieving production targets, particularly in mining, which is a low margin-high capital business,” says Konkola Copper Mines CEO Deshnee Naidoo.
“We are proactively engaging with the Ministry of Finance to expedite these payments, and we have fully briefed the Permanent Secretary of Mines and Mineral Development. We know these ministries are fully aware of the continued delays, and have indicated their support in resolving the matter,” she says.
“Konkola Copper Mines continues to pay suppliers every month, and every effort is being made to make up for delayed payments within the shortest possible time. There are over 500 micro, small and medium-scale local suppliers actively participating in business with Konkola Copper Mines. We are grateful for their support and patience,” Naidoo adds.
The company holds quarterly meetings with supplier representatives namely the Association of Mine Suppliers, and Chambers of Commerce of Chingola and Kitwe.
The copper producer has also arranged a series of meetings with all suppliers to discuss among other things the plans with respect to repayments.