KCM AND CEC MUST WORK TOGETHER FOR ZAMBIA’S ECONOMIC GROWTH – ANDD
Lusaka… Wednesday March 19, 2025 (SMART EAGLES)
The Advocates for National Development and Democracy (ANDD) has called on Konkola Copper Mines Plc and Copperbelt Energy Corporation (CEC) to work together for the common goal of growing the country’s economy.
ANDD Executive Director Samuel Banda says the recent court decision ordering the seizure of KCM assets over an unpaid debt to Copperbelt Energy Corporation is a reminder of the challenges the country’s industries face.
Mr Banda however, says while legal processes serve an important role, stakeholders must also recognize that sustainable business solutions are best found in boardrooms, not courtrooms.
“President Hakainde Hichilema has been clear in his belief that economic disputes should be resolved through dialogue and mutual understanding rather than prolonged litigation. It is in this spirit that KCM and CEC must prioritize constructive engagement to ensure that both parties continue playing their critical roles in Zambia’s economy,” he said.
“The relationship between KCM and CEC is not just about one company owing another. It is about the stability of Zambia’s mining and energy sectors. KCM is one of Zambia’s largest mining operations, contributing significantly to employment, exports, and government revenue. On the other hand, CEC is a strategic power supplier, ensuring that mining operations have the electricity they need to function effectively. A prolonged dispute between these two entities risks not only their survival but also the broader economic well-being of Zambia.”
Mr Banda further said CEC, Zambians and stakeholders in the mining industry have to understand that KCM was only returned to Vedanta less than a year ago, and understably they are still in the process of revamping operations.
“So far they have demonstrated commitment by clearing a significant number of creditors, ensuring that corporate social responsibility is now a reality and have continued to engage local businesses as revealed by the Chingola Chamber of Commerce, Trade and Industry,” he added.
“We believe that instead of allowing legal battles to dominate, both KCM and CEC must seek a path of cooperation that ensures financial obligations are met while keeping operations stable. A negotiated settlement that allows KCM to honour its debt commitments without disrupting its mining activities would be a win-win outcome. CEC, as a critical energy partner, must also recognize that KCM’s continued operation directly impacts its own long-term stability. The goal should be to find a structured payment plan that satisfies CEC’s legitimate claims without crippling KCM’s ability to function.”
The ANDD Executive Director told Smart Eagles via telephone that Zambia’s economy depends on the mining sector, and disruptions within major companies like KCM have a ripple effect on employment, suppliers, and national revenue.
“It is imperative that leadership within both organizations take the necessary steps to resolve this matter amicably. The success of our industries depends on collaboration, not confrontation. Let us not allow legal disputes to overshadow the greater mission, ensuring Zambia’s economic prosperity through cooperation and responsible business practices,” he concluded.
Yesterday, the Court of Appeal stopped the seizure of Konkola Copper Mines properties worth K38.9 million while the mining company’s appeal is being reviewed.
Copperbelt Energy Corporation PLC (CEC) had obtained a High Court order to seize various properties, including goods and chattels, after KCM failed to pay its debt.
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