....this support shows that stakeholders have total confidence in Vedanta Resources to run the mine

Lusaka... Thursday May 30, 2024 (SMART EAGLES)

The Zambians for Unity Peace and Development (ZUPED) says it is pleased that class 2 creditors have voted in favor of the scheme of arrangement.

The meeting chaired by KCM Provisional Liquidator Celine Nair and co-chaired by Shuko Ndhlovu of HLB Zambia, saw an impressive 99% of Class 2 creditors vote in favour of the proposed scheme.

ZUPED President Ronnie Jere says the overwhelmingly positive response from the creditors goes to show the confidence and trust they have in the investor to manage the mine.

Mr Jere stated that the future of Konkola Copper Mines Plc is certain after this critical stage.

"As ZUPED, we are elated to note that class 2 creditors voted in favour of the scheme of arrangement. As you maybe aware, on the 24th May, 2024, class 1 creditors voted in favour of the scheme of arrangement and that meant that we were left with class 2 creditors. But we are happy that the class 2 creditors have resoundingly voted in favour of the scheme of arrangement meaning that this gives Vedanta a leeway to take over KCM," he said. 

"All the legal processes have now been resolved. We are excited and looking forward to Vedanta is going to bring. As you maybe aware, Vedanta Resources has promised to inject over US$1.3 billion for mine recapitalization, US$250 million for settling arrears owed by KCM and US$20 million for corporate social responsibility (CSR) programmes."

He thanked the creditors for putting the interests of Zambians first during this process. 

And in a statement issued earlier, Vedanta Director Corporate Communications by Masuzyo Ndhlovu said Vedanta was grateful for the decisive support it has received at today’s creditor scheme of arrangement meeting held in Lusaka and Kitwe. 

Mr Ndhlovu said with a cumulative approval rate of 99.3% from both classes of creditors, the scheme has comfortably exceeded the required 75% threshold. 

"The outcome is a resounding 

endorsement of Vedanta’s vision for KCM’s future and ability to drive growth and sustainability. The scheme is now poised to move forward with the next stage of the process, which is the court sanctioning process, a critical step towards implementing the scheme," he said.

"The overwhelmingly positive outcome of these meetings serves as a powerful endorsement of the trust creditors have placed in the vision for KCM’s future."


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