Konkola Copper Mines last week paid 180,000 British Pounds to ZCCM-IH under a settlement agreement ordered by the London High Court.
ZCCM-IH successfully applied for default judgment against KCM, a subsidiary of Vedanta Resources and was ordered to pay ZCCM-IH US$103 million in outstanding sums owed to ZCCMIH by 13 January 2017.
KCM was further ordered to pay 180,000 British Pounds in costs incurred by ZCCM-IH in pursuing its application before the English court.
KCM paid 180,000 British Pounds on 13 January 2017 in accordance with the Court’s Judgment and both parties have agreed to amend the dates by which KCM will make the other outstanding payments.
KCM will now pay ZCCM-IH US$ 20 million on 31 January 2017, US$ 22 million on 28 February 2017 and US$ 2,550,000 at the end of every month commencing on 31 March 2017 until such time as the Judgment Sum has been paid in full.
The agreement to amend the dates by which KCM will make payments in respect of the outstanding sums owed to ZCCM-IH will be recorded in a Consent Order of the English Court.
“The English court’s further directions to determine whether KCM made payments to Vedanta Group Companies in breach of the prohibition on doing so under the Settlement Agreement remain unchanged. If and to the extent it is determined that such payments were made, ZCCM-IH will be entitled to recover additional sums from KCM. A further announcement will be made at that time,” a statement issued by ZCCM-IH said.
Meanwhile, ZCCM IH recorded losses after tax of around K2,303 million in the financial year ending March 2016.
The loss after tax jumped from the 2015 figure of K987million.
The firm also recorded an operating loss of K207 million which was however 91 percent down from the 2,179 million recorded in 2015.
Overall group performance continued to be impacted negatively by low global copper prices and low production coupled with the Kwacha depreciation.
The company saw its total assets increase by 29% from K8, 504 million to K10, 956 million largely on account of translation differences on equity accounted investees.
The Ndola Lime recapitalization project underwent hot commissioning and the K651 million shareholder loan that ZCCM-IH lent to Ndola Lime Company Limited (NLC) was converted into Equity in order to strengthen the company’s balance sheet.
During the year ZCCM-IH acquired Trinity Park, an Investment Property along Alick Nkhata road at a cost of K85 million (US$8 million).
ZCCM-IH will occupy one third of the building while two thirds will continue to be rented out.
In August 2015, Minister of Finance transferred 60.3% shares out of 87.5% previously held in ZCCM-IH to the Industrial Development Corporation Limited (IDC).
Subsequent to the period under review, significant progress was made on the Maamba Thermal Plant project with the first 150 megawatts production commissioned in August 2016 and the next 150 MW commissioned in November 2016.
Maamba is currently supplying 270MW to ZESCO.
Going forward Nava Bharat will be responsible for the operation and maintenance of the power plant.
And in June 2016, ZCCM-IH commenced legal proceedings in the London Courts to recover over K1 billion (US$ 100 million) owed by Konkola Copper Mine Plc relating to the Settlement Agreement (SA) signed in 2013.
On 16 December 2016, ZCCM-IH was successful in its application for default judgment.
KCM was ordered to pay all sums owed to ZCCM-IH pursuant to the Settlement Agreement (plus associated contractual interest) within thirty (30) days. The total amount to be paid by KCM amounted to approximately US$103 million.
And on the outlook for the company, ZCCM IH says the copper price has recently shown signs of recovery, and it would appear that beyond 2016 the price will continue to recover.
It says its investee companies that operate mines, have been undergoing restructuring in order to contain operating costs in the midst of the global copper price crunch and that this should have positive results going forward, though recovery will be slow.
It says in order to ensure survival, the company continues to explore diversification and introducing initiatives to achieve efficiencies at Ndola Lime Company Limited, investment into property and agriculture are activities expected to positively impact the Group in the medium to long term.
That’s how my house is worth
Thanks
BB2014,16
You mean the “house’ in between your legs right? I totally agree with you.
That house between Mushota’s legs can’t even cost a cent… later on $103million.
Ba Mwenye aba they must pack and go thats why there is a lot of head-shaking speakers in Zambia today….
Get out ka My shots. What house, you monkey. You wish
ZCCM should object to a staggered payment plan. It’s either Vendata pays the $103million + interest in full or we grab back KCM.
Vendata are simply Jokers. KCM would have been grabbed away from them a very long time ago due to there not been serious. These Indians thinking Mining is like running a shop on Freedom road.
Now is the time
I agree that if the amounts are staggered that interest should be charged – at Bank of Zambia rate, and not Libor. However, knowing PF, they cannot run KCM with the cadres around.
Stop responding to this r.etard Mushota
This made for very good reading. A Zambian company pursuing its capital and investments the right way and winning. Can we sue MMD, UPND, FDD and PF in the London High court? It seems cases get resolved there.
How crazy is it that, on an important well written piece, only a morooon and respondents to it are featuring. Were are the rest of the bloggers that fill the political topics?
Doesn’t sound like a good deal to me. I mean the payment of 22+29+2.5 million up to March 2017. At the rate of $2.5million per month the balance will take 24 months to pay!! Vedanta has made money out of KCMso why dont they just return what they received?
My point exactly. It’s about time we got KCM away from these Vedanta Jockers.
So they pay $50m in 2 months then $2 million every month..how did the court come up with this figure of $2million? A Tazara locomotive carries more than 2 million of KCM copper on just one to Dar-es-salaam. KCM is likened to those Indian Groceries in townships where they simply take out money and never pump back in the community even their staff are all Indian.
Indian Groceries? No need to be racist
..shocking!!!!…$103m to be paid in instalment by a top 10 copper mining giant in the world sure….who the hell had to agree to such terms…if ZCCM-HI was a company run by the west..no such staggering agreement could have been accepted…now poor Africans ..Zambians for that matter…so one individual is benefiting personally here…convince them to agree to this mediocre arrangement and will shall pay you so much…
..Man U paid JUVENTUS about that much$115m in one lot for Pogba…Agarwal claims KCM gives him $500m every year..how can they fail to pay that much in one lot..??
KCM is just a cash cow for them…someone agreed to those term in ZCCM that crook Agarwal proposed to the court to pay as everything is shady with this company. Imagine a Multinational company that is going to the market for $1 billion dollars refinancing loan paying peanuts a month 2 years..when it can pay it off in a lump sum. Its laughable …simply look at Rolls-Royce, Britain’s leading multinational manufacturer, which is to pay £671m in penalties after long-running investigations into claims it paid bribes to land export contracts…this payment is settlement to over prosecutions.
*….this payment is settlement to avoid prosecutions.
” KCM will now pay ZCCM-IH US$ 20 million on 31 January 2017, US$ 22 million on 28 February 2017 and US$ 2,550,000 at the end of every month commencing on 31 March 2017 until such time as the Judgment Sum has been paid in full. ”
So they’re allowed to pay what they owe over 2 years? ($103mn – 20mn – 22mn – 24×2.55mn)
I can not see such a settlement being agreed to by a Western company… am sure even KCM top shareholders make more than $2m in a year irespective of the copper prices.
i can guarantee that even such a staggered plan will not be complied to by KCM. Dealt with these guys in the past and they are liars. In december they promised to liquidate the whole amount in thirty days, now it is installments…watch the space, they will not pay even end Feb 2017…
ZCCM lawyers will be going back to court after 3 months asking for court to take action because of missed payments or stalling…these companies can not play such games in Europe especially to a PLC.
Why haven’t we chased these Indians? The mines are slowly but surely being degraded…
Those vedanta lumpens must just go bavk to their dirty country called “I will Never Do It Again” ( India).
At least ZCCM-IH are the ones finally going after these corrupt mining companies who are stealing away our profits and resources. It might take time but have faith in the leadership of the company – finally they are getting there house in order to make sure they get our money and our rights. I say thank you to the company and it is a big shame on our government that they did not do this many years ago