CEC sues KCM over US$30 million power debt

Copperbelt Energy Corporation, Zambia’s supplier of electricity to mining companies on the Copperbelt has dragged Konkola Copper Mines to court over a US$30 million debt it is owed based on an internal agreement, the Post reported.

Citing an affidavit filed before the Lusaka High Court, CEC wants KCM, a unit of London Listed Vedanta Resources Plc, to pay it US$30,923,091.92 being the amount due and owed to it for the supply of electricity power.

The power company also seeks the High Court’s indulgence to order KCM to pay the above amount with interest as well as costs arising from the court matter.

Lusaka High Court

The electricity power supply transaction, the paper adds, was done pursuant to the Power Supply Agreement made between the two parties on 31 March 2000, as amended. CEC had agreed to supply electricity and KCM also agreed to purchase all its electricity power requirements, the Post reported citing a claim accompanying the writ of summons.

In April this year, KCM obtained a restraining order for CEC not to restrict power supply to the mine by applying to the court.

Konkola Copper Mines Plc (KCM) is a major integrated copper producer in Zambia, primarily engaged in the exploration for mining, production and sale of copper. It is rated as one of the world’s wettest mines, yielding approximately 350,000 cubic metres of water per day from underground.

It is currently engaged in developing the more than IS$1 billion Konkola Deep Mine Project, in which it is expected to increase copper production to over 400,000 tons per annum when completed.


Source: Mining News Zambia 

2016-06-17T14:59:41+00:00 July 21st, 2014|Copperbelt Energy Corporation, Investee companies, Konkola Copper Mines|Comments Off on CEC sues KCM over US$30 million power debt