Copperbelt Energy Corporation Plc (CEC) has gone ahead with its threat to cut power from Konkola Copper Mines Plc (KCM) for nonpayment of USD144 million. In a statement released to the media, CEC said that it has taken the decision to protect and enforce CEC’s commercial rights as a business and ensure that the Company does not engage in reckless trading.
The Company further said that, as a listed business, it had an obligation to all its shareholders to preserve whatever value is left of its business at this stage and that without this important action, the continuing risks may cause irreparable damage to the business.
Earlier, Energy Minister Mathew Nhkuwa said in a statement that KCM would now get its power directly from state-owned utility Zesco Ltd, which until now has sold electricity to CEC for onward supply to KCM.
Below is CEC full statement
CEC commences KCM power restriction process
Further to our statement of 29 May 2020 on the decision to discontinue power supply to Konkola Copper Mines Plc (KCM) due to there being no contractual basis to provide service, Copperbelt Energy Corporation Plc (CEC) wishes to advise that it has today, 1 June 2020, commenced the process of discontinuing power provision to KCM.
The decision by CEC comes on the back of two critical issues:
CEC currently has no contractual basis to continue providing service to KCM;
KCM’s outstanding indebtedness to CEC of about USD144 million as at end of May 2020 remains without an agreed solution between the parties.
This decision has been taken to protect and enforce CEC’s commercial rights as a business and ensure that the Company does not engage in reckless trading. As a listed business, CEC has an obligation to all its shareholders to preserve whatever value is left of its business at this stage. Without this important action, the continuing risks may cause irreparable damage to the business.
As a responsible business and corporate citizen, CEC will not interfere with or endanger any national assets or those of its customers. CEC’s interest at all times is to ensure that its business and that of its customers operate optimally and to each party’s best interest, having regard for the mutual obligations that underpin commercial business relationships. Therefore, reduction of power, whenever justifiable, is an action of last resort done in a very responsible, well-considered and planned process with the full involvement of the customer, prioritising the safety of personnel and equipment, and leaving the minimum power required for purposes of safeguarding personnel and the mine’s assets.
For further information, contact:
Chama S. Nsabika
Senior Manager Corporate Communication
+260 212 244914
+260 966 792922