The Zambian government on Thursday directed Konkola Copper Mines (KCM), a unit of London-listed Vedanta Resources, to mobilize resources and ensure it liquidates debts owed to suppliers and contractors without further delay.

Richard Musukwa, Minister of Mines and Minerals Development, warned that the government would take punitive action against the mining firm if it fails to comply with the directive.

The government had given the mining firm a one-week directive to liquidate the debts owed to contractors and suppliers who have been complaining for a long time.

Last week, some contractors and suppliers complained that the mining firm has failed to respect the directive to pay the debts and asked the government to intervene.

But the Zambian minister said that he expects the mining firm to come up with a plan on how it was going to pay off the debts, according to state broadcaster, the Zambia National Broadcasting Corporation.

The government, he said, was closely watching what was happening at the mining firm.

The mining firm has come under spotlight in recent weeks for failure to pay contractors and suppliers. Last week, a firm that supplies electricity to the mines effected a partial power cut to the mining firm due to failure to pay outstanding debts.

Some stakeholders have called on the government to take over operations at the mining firm as it was evident that the owners were facing challenges.

The Zambian government holds a 20.6-percent stake in the mine through its holding company, the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH). Enditem