9.5 C
Alba Iulia
Tuesday, December 6, 2022

KCM is telling lies-CEC

Headlines KCM is telling lies-CEC

cec

Copperbelt Energy Corporation Plc has refuted claims by Konkola Copper Mines Plc that CEC has effected further power restrictions to their operations.

In a statement, CEC Spokesman Chama Nsabika said KCM has been receiving in the order of 90% of their power requirements since Saturday, 20th September 2014 when CEC restricted part of their supply on account of their failure to pay for electricity consumed since April 2014.
The restriction was done in accordance with provisions of the Power Supply Agreement of 2000 and pursuant to a Restriction Notice issued to KCM in April 2014, and following the ruling of the High Court on 16th September 2014, setting aside the Injunction it had earlier granted to KCM, ex parte, restraining CEC from restricting, suspending, disconnecting or otherwise interrupting supplies of electricity.

The current restriction of KCM’s power requirements was agreed upon with KCM per PSA provisions and no further reduction has been effected since.

Mrs Nsabika said it seems KCM had attempted to bypass the power restriction to the Concentrator that CEC had effected on 20th September, leading to a load ramp up which caused trip outs on the system.

“On Tuesday, 23rd and Wednesday, 24th September 2014 at 23:48 hours and 01:53 hours respectively, CEC’s Incomer Transformers No.s 1A, 3A and 7A, which supply part of KCM’s Nchanga Mine, tripped out on an overload condition due to KCM’s ramping up of load on the previously restricted transformer capacity,” Mrs Nsabika.

She added, “This tripping, caused by excessive load uptake, resulted in interruption of power supply to the 11kV Front Bus Bars for 65 and 20 minutes respectively. Prior to the incident in question, KCM had been warned about their excessive power uptake as this could lead to tripping, as it indeed did.”

Mrs Nsabika said CEC deplores KCM’s continued attempts to vilify CEC in the public eye and play the victim while they persistently default on their payment obligations and renege on efforts to find a lasting settlement to the current challenges.

“While CEC continues to supply KCM, currently providing about 90% of all of KCM power requirements, KCM continues to refuse to settle invoices; in breach of our PSA and the Order of the High Court that dictates that the Parties continue to meet their PSA obligations.”

Meanwhile, Government has directed Konkola Copper Mines (KCM) and Copperbelt Energy Corporation (CEC) to resolve their standoff over the outstanding $44 million electricity bill the mining company owes before the end of today.

Speaking during a joint media briefing in Lusaka this afternoon with Mines Minister Christopher Yaluma, Chief Government Spokesperson Joseph Katema said that the standoff between the two companies has become a source of concern to government.

Dr Katema said that Government will not accept any further delay or inaction by the two companies to resolve this matter as it can have far reaching humanitarian and economic consequences.

Dr. Katema said that both companies were given enough time to resolve the matter, but that it is disappointing that the stand-off has continued and is now seriously threatening the safety of the workers at KCM.

He noted that the situation could have been avoided had the two companies exercised their responsibility by fulfilling their obligations to each other.

And Mines, Energy and Water Development Minister Christopher Yaluma feels both companies have not done what was expected of them which he says is unacceptable.

28 COMMENTS

    • The only one telling lies is nick that we are getting married after engagement for 2 years

      Bon of a Sitch.

      But I love him I think.

      Thanks

    • Chi Anderson Chisala, you are really a slave to PF. Mukafwa na BP. Lyonse kano fye PF PF. The PF is doing excellent. You go and hung yourself if you so wish.

    • When mine infested companies make abnormal profits they don’t mention but when payback time comes, they raise dust to find ways of dodging payments. The working gvt my govt fix them all.

  1. Whats wrong with these mining giants ? They don`t want to pay some of the taxes, and now they want to extend their nonsense to power supply ? Pay up !!

    • @saulosi. And the only thing your PF ministers can do is what what Masumba can manage to do, and that is to behalve like street kids. ” OK Okay ba KCM and CEC ipononeni tumone umukali, but fight fast before wives and your economy is affected”. Pray that your Chikwanda can overwork again this week.

  2. This is getting out of hand. A normal business relationship is where you pay for what you consume. Alas, kcm thinks that electricity in Zambia is free. Who does that? Since April, kcm has simply refused to make good their electricity bill. Now what to do?

    And now they refuse to obey court orders. Else where in the news, an Australian drilling company has seized goods belonging to kcm lusaka office for failure to pay bills as far back as three years ago. Now we know that kcm are here for a free lunch. Can someone remind kcm how business is done. Be practical ba kcm!

  3. If half of what we are reading is correct then our Country is headed for deep trouble. This trouble ahead will make BINANI case in Luanshya look like Sunday school. I have to say for KCM to behave as blatant as this i.e. refuse to pay Bills, behave in a contempt manner towards Court ruling, cause the system to trip by overloading, and then compound the problems by telling lies strongly suggests this is all premeditated. KCM are definitely up to something, and that something is not noble. Watch this space..

  4. If KCM really bypassed the electricity and therefore, endangered the lives of Zambian Citizens (workers) they`re liable to prosecusion and since CEC says it has eveidence of correspondence between the two parties, GRZ has the right to grab KCM now and for good,

    Look for an investor not these Indian Speculators who know nothing about mining.

  5. What is disappointing is the behaviour of ‘enabling’ gov’t ministers who criticise Zambian statutory businesses or Tax authorities, when they attempt to collect Taxes and Revenue for the state.

    The critic which draws in CEC as being also wrong in this conflict is licking the boot of foreign invaders, sorry, investors who come to do business here for free. Senior gov’t officials enable these investors to rob us.

    It is very clear CEC is wronged. They should not be accused in the same breath as KCM. CEC is victim. It is time to throw KCM and Vedanta OUT, OUT!

    • If Vedanta and KCM are still around by 2016, it’s going to be part of the Judgement Call as to whether we change sides. PF listen…. We are not going to tolerate these current investors at KCM and. VEDANTA robbing us blind with your help. There are other investors to look at, not these British colonial criminals.

      We love Media but only if they pay their taxes! PF stop interfering with ZRA in doing its job.

      This is soooooo, annoying I might go back to nonpartisan!!

  6. The price of corruption can be high; and KCM is a typical example. If Yaluma and his government have been aboveboard from the work go, KCM could have changed course. My thesis: the greatest enemy for an African is an African. How a government can allow such mediocrity is beyond me.

    • @ Rigoe Sanchez

      Surely, you are not suggesting other Nationals don’t have this type of corruption. How do you suppose internet theories of The Illuminates and Zeitgeist( the film) ate all about. Yes, those men and women in dark clothes among us who share the worlds resources among them. I expect KCM and Vedanta are from that system of works.

      We are all internationally at the mercy of worldwide conglomerates.

  7. Its clear our mining industry and energy is still not Financially developed Engineering Yes we can see.

    You mean there is no one who can buy off KCM 44 Million in a structured deal to pay off CEC and Were is the fees for ERB and Use. Is there no arbitrage opportunity here for derivatives energy profiting or are we locked up in traditional contracts with onerous commitments.

    Its also an issue of good image especially for a company riding a worthy man 44 million should be a small figure to arbitrage away.

    Cec can also look at swaps with the reach copper KCM has mined and take advantage and clear at huge variations or is it a case of business lines and money for money

  8. looking at Treasury assets of GROBAL”‘ KCM,I personally do not think KCM parent can fail to clear such a small amount in relation to its assets and liabilities at least as can be seen They have a huge and well trained treasury department to fail to handle such a small figure or can we begin to doubt their resources in treasury and instruments as not exhibiting quality and liquid

    Don’t they have copper sales contracts to escrow to cec or other third party or can cec benefit from copper windings that they may need for their transformers and windings or can CEC convert into some loan at libor +

    If I had such huge sums I was going to discuss with KCM to buy off the bills and make…

  9. What’s with KCM owing everyone money and failing to pay up? CEC and then there’e the Aussie’s seizing KCM property with bailifs in Lusaka. Isn’t this the mine where one Aggahrwal was bragging about millions in returns? This type of investor has to learn that in Zambia, nothing is for free. You pay for what you consume. Be genuine mr investor.

  10. If KCM doesn’t want to pay, shut the power off and let them try to use Solar panels and see how far their business will go. Its simple, you want the service pay for it. The entittlement mentallity using the public for symphathy should cease.

  11. Why is the Zambian Government hiding in the PSA? Just compel KCM to to pay the money owed to CEC. Government should not play double standards, please.

  12. Don’t stress yourselves CEC, we all know that KCM are liars who just want to make profits at the expense of the government, employees, service providers, etc.

  13. That is why for the future a small percentage should be deducted as reserve fund to be kept by central bank in strategic industries like energy and mines to support the sectors in times like this where normal insurance cannot support.

    Its done and seen working to avoid sudden disturbances and shocks especially given the nature of private laid investments that may have a shorter horizon to Gov often with weaker or small interests/equity/stake to control the developments should there be an event outside the normal or contrary to normal business behaviour

    Such funds can also act as part of restoration and reclaiming the sites from such mining activities in the future

  14. This is not true friends, it is called artificial bankrupsy . It comes into play when maximum product is sold under the table so that it cannot be taxed and minimum product is sold legally and recorded on books. It has been done before kagem was sold in 2008 to gemfields . Mr Govind Gupta; director at that time; laundered emeralds out of the country and sold to his friends privately

  15. When a businessman realises that he’s dealing with dull headed and softy minded, easy to get along government oh he will exploit them sucking them dry and leaves them not even wondering what hit them, its a Nija way of doing business!

Comments are closed.

Latest News

Jay Rox and Chile One collaborate on “Ntandaleko”

Jay Rox and Chile One collaborate on "Ntandaleko" The song is about a young couple struggling to take care of...

More Articles In This Category