Konkola Copper Mines Announces Salary Delays Due to Cash Flow Issues

Konkola Copper Mines (KCM) has informed its employees that their June salaries will be delayed due to unforeseen circumstances that have negatively impacted the company’s cash flow.

This mirrors the situation from last month when the company notified workers that their May salaries would be delayed due to circumstances beyond their control.

KCM’s Human Capital Management Acting Vice-president, Prudence Chisakuta, had previously released a statement assuring employees that the challenges faced in May had been resolved and that future payments would be made on time.

However, in a notice dated June 25, 2024, KCM management stated that the company is currently in the process of raising capital, with vigorous support from Vedanta Resources Limited.

The notice emphasized that salary payments are a priority and that the government has been involved in discussions to resolve the issue.

“Dear All, Management would like to inform all KCM employees that there will be a delay in paying salaries for the month of June 2024 due to unexpected circumstances that have negatively impacted the company’s cash flows.

The company is in the process of raising capital, vigorously supported by Vedanta Resources Limited, following arrangements to restore Vedanta as the major shareholder of Konkola Copper Mines (KCM), in accordance with the Implementation Agreement signed by the government, Vedanta, KCM, and ZCCM-IH in November 2023.

The matter of salary payments is being prioritized and is currently under serious discussions at a high level with government involvement to ensure that salaries are paid as soon as possible.

Management regrets the inconvenience caused by the delay and requests employees to be patient. Further communication will be provided in due course,” the notice read.

SOURCE:Diggers