Copperbelt Energy faults KCM’s debt payment claims, insists it’s a preferential creditor

The Copperbelt Energy Corporation PLC (CEC) has denied claims by Konkola Copper Mines (KCM) that it had fully settled a court-ordered debt, revealing that the mining firm still owes a balance of US$1.48 million.

In a statement issued on Wednesday, CEC confirmed receipt of US$10.36 million from KCM as part of a High Court order but noted that the full amount due was US$11.84 million.

The disputed sum is part of a broader debt totalling US$29.6 million, which CEC says KCM agreed to in a reconciliatory arrangement aimed at sustaining power supply to the mine during its financial difficulties.

On Tuesday, KCM announced it had fulfilled its obligations under the first instalment of the High Court’s directive.

But CEC countered the statement, saying not only is a portion of the payment outstanding, but that it also objected to KCM’s attempt to reclassify the energy supplier in its Creditors Scheme of Arrangement (CSA).

“Contrary to KCM’s recent press release, CEC has under no circumstances agreed to be classified as a Class 2 Creditor under the Creditors Scheme of Arrangement,” the company stated. “CEC maintains it is a preferential creditor—a status KCM itself previously acknowledged.”

The CSA, approved by the High Court on June 28, 2024, has become a point of contention. CEC has appealed its reclassification in the Court of Appeal, where the case is still pending.

CEC disclosed that KCM initially defaulted on the agreed repayment timeline, prompting legal action. The High Court subsequently ordered KCM to pay US$11.84 million by December 12, 2024—a directive KCM tried unsuccessfully to delay through stays of execution.

While CEC affirmed its right to enforce court rulings, it also clarified that its actions were not intended to disrupt mining operations on the Copperbelt.

“CEC’s enforcement of the court orders is not intended to disrupt operations at KCM or within the Copperbelt. Rather, it is a legitimate exercise of our commercial rights, as recognized and upheld by the Zambian courts,” the company said.

As a publicly listed entity, CEC said it has a fiduciary duty to its shareholders and remains committed to upholding the rule of law and ensuring stability in Zambia’s energy sector.

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