CEC Says KCM Still Owes US$1.48M Under Court Order
The Copperbelt Energy Corporation Plc (CEC) has disclosed that Konkola Copper Mines (KCM) still owes US$1.48 million under an US$11.84 million payment order issued by the High Court.
CEC confirmed receipt of a partial payment of US$10.36 million from KCM but states that the full amount ordered by the court has not been settled.
The company also dismissed KCM’s claims that it agreed to be classified as a Class 2 creditor under the Creditors Scheme of Arrangement (CSA), maintaining that it is a preferential creditor.
In a statement issued by Ms. Verona Mwila Nkolola, Head of Corporate Communications and Investor Relations, the classification of CEC as a Class 2 creditor in the CSA approved by the High Court on June 28, 2024, was inaccurate and has since been challenged through an appeal to the Court of Appeal.
The matter is currently pending determination.
CEC explained that prior to the CSA application, KCM had recognized it as a preferential creditor based on contractual agreements that allowed for the continued supply of power during a critical time for KCM.
The company states that this status was not only contractually established but also essential for maintaining mining operations.
Despite the CSA indicating a reduced and reconciled amount of US$29.6 million payable to CEC, the company states that KCM failed to meet its initial payment obligations.
As a result, CEC sought a court order to compel KCM to pay the initial amount of US$11.84 million, which High Court Judge Charles Kafunda granted, ordering payment by December 12, 2024.
CEC noted that KCM did not comply with the order and instead filed applications to stay execution in both the High Court and the Court of Appeal. Both applications were dismissed.
The company has emphasized that its efforts to enforce the court order are not intended to disrupt KCM’s operations but are a legitimate attempt to recover outstanding dues.
As a publicly listed entity, CEC states it has a duty to safeguard the interests of its shareholders and stakeholders while upholding contractual obligations and the rule of law.
CEC reaffirmed its commitment to operating responsibly and in accordance with legal and regulatory requirements, underscoring its role in supporting Zambia’s energy sector and broader economic development.
