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Thursday, July 2, 2020

Konkola Copper mines statement on CEC threats to restrict power

Economy Konkola Copper mines statement on CEC threats to restrict power

Konkola Copper Mines (KCM) acknowledges having seen a media statement, dated 29 May 2020, issued by the Copperbelt Energy Corporation (CEC) in which it indicates that it intends to switch off power supply to KCM with effect from 1st June 2020.

Konkola Copper Mines informs that the 20-year Power Supply Agreement (PSA) between CEC and KCM expired on 31st March 2020, and was extended by mutual agreement to 31st May 2020. KCM has entered into a binding Term Sheet Agreement for a new PSA between ZESCO Ltd and KCM, effective 1st June 2020. ZESCO Ltd is expected to conclude a Wheeling Agreement soonest with CEC to transmit power from ZESCO Ltd, via CEC infrastructure, to KCM
operations.

KCM has also become aware that the Minister of Energy issued a Statutory Instrument (SI) on 29th May 2020, in terms of Section 15 of the Electricity Act, No 11 of 2019, declaring CEC as a common career of power from ZESCO to KCM using CEC infrastructure in the absence of a
signed Wheeling Agreement between CEC and ZESCO Ltd. This will enable Zesco to transmit power to KCM using CEC infrastructure, pending the Wheeling Agreement between CEC and ZESCO.

We expect a seamless transition in the supply of power from CEC to ZESCO and any interference or restriction will be an act of sabotage.

Konkola Copper Mines cannot comment any further on any other issues pertaining to this matter as there is a pending case at the Kitwe High Court to which the Court is yet to pronounce itself on the said matters. In as far as these matters are concerned, KCM reserves its rights and will seek redress at an appropriate time and forum.

Shapi Shachinda
General Manager Corporate Affairs

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5 COMMENTS

  1. CEC is now a grid owner that has no power. Poor planning guys, Maamba went for generation first and they are still firing.

  2. We are now a Mafia Society where Rogue Individual can use State powers to get what they want! Tragic for Zambians! These Rogue and Selfish individuals can be compared to the HIV virus and what it does to a CD4 cell. The virus simply takes over the DNA machinery of the cell and begins to selfishly replicate itself!
    Even the Institutions of governance get infiltrated in order to “Do as I say!” It’s a Do as I Say thing! The end result of this Mafia infestation and infection is AIDS Acquired Institutional Deficiency Syndrome! In other words, Democracy dies and the country follows!

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  3. This is retrogressive. The people that are managing KCM don’t want to pay anything to anyone. They believe that if ZESCO supplies power to the mines directly, then they wont have to worry about paying on time or at any time soon. ZESCO is also shooting itself in the foot, do they think KCM will pay them anything? The political lieutenants running KCM will not even answer ZESCOs calls to pay. ZRA should forget about the TAX CEC has been paying them (from the business with KCM). They will not look at the bills. Shame on our government. Instead of going forward we are taking the country back to communism. This kind of business is headed for failure and wont last long. Only a few individuals will benefit out of this no-sense. Lord have mercy. The world is run by mafias everywhere. This govt…

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  4. CEC should go to court and garnish any payments that will be due to Zesco from KCM until their debt is settled. It would be ridiculous to pay Zesco which is a new creditor to KCM.

Comments are closed.

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