Konkola Copper Mines Plc (KCM) Provisional Liquidator Ms. Celine Nair, has announced the appointment of Rand Merchant Bank (RMB) as financial advisor to the Company in the Government’s ongoing efforts to bring it back into full operation.
The appointment of RMB follows on from the announcement in June 2022 that a comprehensive search had begun for a financial advisor to assist in securing financing for its medium to long term projects. A total of 11 local and international firms were invited to participate in the tender process that culminated in the selection of RMB.
“The appointment of RMB is a major milestone 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 forms part of a strategic national resource base and stepping up the search for a strategic equity partner is vital to unlocking the rich ore reserves at Konkola Deep Mine. It is also pivotal in reaching the targeted increase in national copper production of 3 million tonnes within the next 10 years – the cornerstone of the New Dawn Government’s mining policy.”
Instrumental to the growth of KCM Plc is the Konkola Deep Mining Project (KDMP), which requires a minimum investment of circa US$1.2 billion, to construct additional pump chamber facilities necessary for pumping out water and unlocking new production areas within the rich ore reserves. Other upgrades and expansions are required in the Tailings Leach Plant at Nchanga in Chingola, the Nchanga Smelter and other key assets.
“It is KCM’s focus to complete the process of securing capital as soon as possible in order to accelerate the unlocking of long-held back investments and mine development. These requirements are important to ensure growth and the sharing of benefits to 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,” Ms. Nair said.
Ms. Nair added that the appointment of RMB serves as an assurance to the ongoing management process, which is aimed at strengthening governance in KCM and its subsidiaries.
“A lot of improvements have taken place at KCM since May 2022 and the mine’s future is looking bright as we gear up to increase production as soon as bridge funding is secured, Ms. Nair said.