KCM workers unions sign agreement for a 20% pay rise

Konkola Copper Mines (KCM) has signed agreements with five different workers unions to increase benefits, including securing a 20% salary increase for unionised workers.

Development Minister, Paul Kabuswe simultaneously announced that Vedanta Resources has arranged for $250 million to be paid to KCM creditors. This comes as Vedanta starts taking steps to revive operations of the mine after regaining control of the assets.

Kabuswe emphasised the positive impact of this development, noting that it alights with the ongoing efforts to stabilise and enhance the mining sector in Zambia. "The first tranche of $25 million has already been deposited into the Escrow account. This second tranche aims to pay creditors, marking a significant step forward," Kabuswe stated.

The unions involved are The unions involved include the Mine Workers Union of Zambia (MUZ), National Union of Miners and Allied Workers (NUMAW), United Mine Workers Union of Zambia (UMWUZ), Mine Tailings Assistants Association of Zambia (MTAAWUZ), and Mine Auxiliary Workers Union (MAWU).

Vedanta Resources took back control of KCM at the end of last year after the mine had been seized by Edgar Lungu’s administration after it conceded that the company had failed to expand investments in copper production.

According to Reuters, Vedanta will still need to raise an additional $1 billion to fully revive the mining operation.

In a statement made on the 9 July, Vedanta said “KCM, a Vedanta Resources-owned mining company, last Friday 5 July 2024, signed collective agreements with five workers unions fostering a collaborative and productive work environment.”

On 3 July, the UAE’s International Resources Holdings (IRH) withdrew its bid to buy a stake in Vedanta after talks between the companies failed on agreement of the asset’s value. The IRH had bid to buy a 51% stake in KCM for more than $1 billion. Alongside its purchase of 51% of Mopani Copper Mines in April, the UAE and Saudi Arabia are looking to secure critical metal supplies in Africa to aid their transition to green energy.