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Konkola Copper Mines (KCM) has announced the payment of US$10.4 million to the Copperbelt Energy Corporation (CEC), marking the first installment in settling a US$29.6 million debt.
The payment is in line with the High Court of Zambia’s approved Scheme of Arrangement (CSA).
In a statement released by KCM Chief Corporate Affairs Officer, Dr. John Kunda, the mining firm confirmed that the payment was made on April 14, 2025, following CEC’s formal acceptance of its classification as a Class II creditor under the scheme, a designation it had previously disputed in court.
Dr. Kunda stated that KCM remains committed to fulfilling its obligations under the CSA and will continue to ensure compliance with the Corporate Insolvency Act of 2017.
Read more: KCM loses appeal bid as court clears CEC to sell seized assets over $11.8 million debt
He noted that KCM has already fully settled debts owed to Class I creditors, those owed less than US$1 million,and has now begun disbursing 35 percent of what is owed to Class II creditors, on a pro-rata basis, excluding those with outstanding disputes.
CEC is currently appealing its classification in the Court of Appeal, arguing that it should be treated as a preferential creditor.
However, KCM maintained that all creditors must be treated equitably under the law, and it will oppose any attempt by CEC to gain preferential treatment.
Despite contesting the CSA in court, CEC simultaneously pursued payment under the same arrangement.
KCM, citing legal advice, pointed out that once the scheme was approved by the High Court, it became binding on all parties, and any unequal treatment among creditors within the same class is prohibited.
KCM also addressed CEC’s enforcement actions from March 18, 2025, which targeted company asserted in a move KCM described as disruptive to operations in both the company and the wider Copperbelt region.
The Court of Appeal has since suspended further enforcement and ordered the return of the seized assets pending the resolution of CEC’s appeal.
“Our focus remains on operational stability, equitable creditor settlement, and long-term sustainability,” Dr. Kunda stated.
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