Konkola, the largest integrated copper producer in Zambia, is currently working towards resolving payment delays with all its suppliers and business partners. Konkola Copper Mines further acknowledged the impact that the aforementioned delayed payments are having on their suppliers’ businesses and dependents.
According to Konkola Copper Mines CEO Deshnee Naidoo, the current situation is heavily influenced by the delayed VAT refunds due to the copper producer by several months. Furthermore, it goes without saying how working capital is an important driver in achieving production targets. This especially the case in mining, which is a low margin-high capital business.
She further explained that they are presently working with the the Ministry of Finance to speed up the payment process. This, she says, is already in the know for the Permanent Secretary of Mines and Mineral Development. Ms. Naidoo also lauded the support the company is getting from the respective ministries, as they are fully aware of the continued delays.
Ms. Naidoo explained that 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. Currently, there are over 500 micro, small and medium-scale local suppliers actively participating in business with Konkola Copper Mines. She further acknowledged their support and thanked them for their patience in the matter.
Konkola mines has also arranged a series of meetings with all suppliers to discuss among other things the plans with respect to repayments.
