KCM BEGINS COURT-ORDERED REPAYMENTS TO CEC AMID LEGAL BATTLE

Published 2 months ago• 2 minute read

Konkola Copper Mines (KCM) has commenced payments to the Copperbelt Energy Corporation (CEC) under a court-sanctioned Scheme of Arrangement, despite an ongoing legal dispute between the two entities.

KCM’s Chief Corporate Affairs Officer, Dr. John Kunda, confirmed the development, stating that CEC had now formally accepted its designation as a Class II creditor a status that entitles it to staggered repayments totaling more than one million US dollars.

“This action reflects our respect for the law and the decisions of the court,” Dr. Kunda said. “We have already disbursed the first instalment of 35% to Class II creditors as directed by the High Court. All Class I creditors have been fully paid.”

The confirmation follows months of tension between the mining giant and its energy supplier. Earlier this year, CEC contested its classification under the repayment scheme and attempted to seize KCM assets—a move that was later halted by the Court of Appeal, which ordered a return of the seized assets pending the outcome of the legal process.

Dr. Kunda emphasized that KCM is acting in full compliance with the court’s instructions and is committed to equitable treatment of all creditors. “The law prohibits preferential treatment among creditors within the same class. Our actions have been consistent with that principle.”

Backed by majority shareholder Vedanta Resources, KCM is working to stabilize operations and rebuild trust following years of financial challenges and legal uncertainty. The company has reiterated its commitment to Zambia’s Copperbelt region through continued investment and debt settlement.

“Our priority is to maintain operational continuity while addressing our obligations,” Dr. Kunda said. “Even as CEC’s appeal progresses, we will honor the court-approved plan and avoid disruptions to business.”

The next hearing in the CEC appeal case is yet to be scheduled. Meanwhile, KCM has assured stakeholders that it will proceed with scheduled repayments and legal compliance.

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