CEC Says KCM Still Owes US$1.48 Million Despite Court Order
The Copperbelt Energy Corporation Plc (CEC) has confirmed that Konkola Copper Mines (KCM) still owes the company US$1.48 million, despite a court order requiring payment of US$11.84 million.
In a statement issued by Ms. Verona Mwila Nkolola, Head of Corporate Communications and Investor Relations, CEC disclosed that it had received a partial payment of US$10.36 million from KCM, but the full amount ordered by the High Court has not yet been paid.
CEC also rejected claims by KCM that it had agreed to be listed as a Class 2 creditor under the Creditors Scheme of Arrangement (CSA) approved by the High Court on June 28, 2024, insisting that it holds the position of a preferential creditor based on contractual agreements.
The company has appealed the classification in the Court of Appeal, and the matter is currently pending.
CEC stated that prior to the CSA, KCM had acknowledged its status as a preferential creditor due to agreements that ensured the continued supply of power to support mining operations during a critical period. The company emphasized that these contracts were vital for the survival of KCM’s operations.
According to the CSA, a reconciled amount of US$29.6 million was recorded as payable to CEC. However, KCM failed to meet its initial payment obligations, prompting CEC to seek legal redress. The High Court subsequently ordered KCM to pay US$11.84 million by December 12, 2024.
CEC revealed that KCM filed applications to stay the execution of the payment order in both the High Court and the Court of Appeal, but both attempts were dismissed.
The energy company stressed that its actions are aimed at recovering lawful dues and are not intended to disrupt KCM’s mining operations. As a publicly listed company, CEC said it has a responsibility to protect its shareholders and stakeholders while adhering to contractual commitments and the rule of law.
CEC reaffirmed its commitment to operating within Zambia’s legal and regulatory framework, while continuing to play a key role in the country’s energy sector and economic development.
