The interim liquidator of Konkola Copper Mines Plc (KCM), Ms Celine Nair, has announced the appointment of Rand Merchant Bank (RMB) as the company’s financial adviser as part of the government’s continued efforts to get it back into full operation.
RMB’s appointment follows the announcement in June 2022 of the launch of an in-depth search for a financial adviser to help it secure financing for its medium and long-term projects. A total of 11 local and international companies were invited to participate in the bidding process which resulted in the selection of RMB.
“RMB’s appointment is a major step in the journey towards the full turnaround of Konkola Copper Mines Plc and its subsidiaries, Konkola Mineral Resources Limited (KMRL) and KCM SmelterCo Limited,” Ms Nair said.
Ms. Nair added that “the company is part of a strategic national resource base and intensifying the search for a strategic partner is essential to unlocking the rich ore reserves of Konkola Deep Mine. It is also key to achieving the targeted increase in national copper production of 3 million tonnes over the next 10 years – the cornerstone of the New Dawn government’s mining policy.
The Konkola Deep Mining Project (KDMP), which requires a minimum investment of around $1.2 billion, is critical to KCM Plc’s growth to build additional pump chambers needed for pumping water and opening of new production zones in the rich ore reserves. Further upgrades and expansions are needed at the tailings leaching plant at Nchanga in Chingola, the Nchanga smelter and other key assets.
“KCM’s objective is to complete the process of securing capital as soon as possible in order to accelerate the release of long-held investments and the development of the mine. These requirements are important to ensure growth and benefit-sharing for strategic stakeholders, which include the government and employees of KCM, its subsidiaries, as well as business partners and communities in KCM’s areas of operation,” said Ms Nair.
Ms. Nair added that RMB’s appointment serves as assurance to the ongoing management process, which aims to strengthen the governance of KCM and its subsidiaries.
“Many improvements have taken place at KCM since May 2022 and the future of the mine looks bright as we prepare to ramp up production once bridge financing is secured,” said Ms Nair.
Issued by Céline Meena Nair Provisional liquidator of KCM