Copperbelt Energy Corporation (CEC) says Konkola Copper Mines (KCM) is still owing the corporation US$145 million for the power supplied to the Mine on contractual basis.
Speaking during CEC’s first-ever Virtual Annual General Meeting, Corporation Managing Director Owen Silavwe stated that KCM has continued to avoid its contractual obligation to settle the debt.
Mr. Silavwe said following the expiry of the Power Supply Agreement (PSA), CEC and KCM signed an extension to the agreement to May 2020 to allow for more time to negotiate new agreement, adding that KCM’s debt to the corporation had escalated to US$132 million during this period.
He stressed the need for the Mining firm which is currently being controlled by government to honor its contractual obligations.
“With KCM still failing to settle power bills, they informed CEC that they had signed a one year term sheer with Zesco and would not be renewing the PSA with CEC leading to the expiry of the PSA on 31 May, 2020.”
“There should be no conflict between KCM and CEC, what is important is that we supplied power based on contractual terms so KCM should honor. If they have challenges, they should come forward and state those challenges,” Mr. Silavwe said.
He added that the corporation will continue to seek all options to ensure that KCM pays the debt because the vast majority of the money belongs to Zesco.
And Mr. Silavwe disclosed that the first round of negotiations that started in February this year for a new agreement between CEC and ZESCO failed by March.
He however said efforts to resolve the standoff are yet to yield positive results.
“So far, efforts to resolve the impasse are yet to yield positive results. Parties have continued trading on disputed terms,” he explained.
Meanwhile, CEC Board Chairman London Mwafulilwa said the Corporation has continued to engage Zesco to find solutions that are commercially driven in order to come up with an amicable agreement.
“CEC is also engaging the Ministry of Energy in terms of harmonizing the energy sector in order to promote stability in the region,” Mr. Mwafulilwa said.