LUSAKA (Reuters) – Vedanta Resources (NYSE:) Resources offered to increase investment in Zambia’s Konkola Mines, (KCM) as well as implement several programmes of social responsibility if the company regains control over the firm. A letter from the company to the government indicated this.

KCM was confiscated by Zambia’s government in May 2019 and handed over to Milingo Lungu, a liquidator. This led to a continuing legal battle with Vedanta Resource, KCM’s parent company.

Vedanta was accused by the government of not honoring licence conditions. This included promises to invest. Vedanta repeatedly denied that KCM violated the terms of its license.

Sunil Duggal, Vedanta’s chief executive, stated that the company was committed to spending an additional $1 million towards the development of capital mines and infrastructure in order to increase KCM’s output.

The May 5, 2005 letter reads: “The Vedanta above commitments will be included in the Framework Agreement between KCM and Vedanta. ZCCM–IH, and (the government)”.

ZCCM–IH is the mining investment firm of government.

Duggal stated that the long-running dispute between Vedanta’s government and Vedanta was detrimental to any KCM stakeholder and that it was essential to reach an immediate mutually beneficial resolution.

Kabuswe, and Anthony Bwalya, the Presidential spokesperson could not be reached for comment immediately.

Vedanta committed to paying KCM supplier, particularly small suppliers that owed more than $220m at the time the Provisional LIquidator was appointed. Duggal wrote in the letter.

Additionally, the company committed to increasing salaries across all levels by 20%.

The letter is copied to President Hakainde Hachilema and reads: “The Agreement will be auditable by an independent firm on a biannual basis to verify that all parties have fulfilled their obligations under the Framework Agreement.”

Masuzyo Nalovu, Vedanta Zambia’s Corporate Communications Director said that the letter was written in response to remarks made by the minister of mines about the conditions KCM can be returned to Vedanta.

The conditions of Vedanta’s return to KCM Plc were laid out by our group CEO. Ndhlovu confirmed that the content was authentic and addressed it to the minister.” Ndhlovu said to Reuters.