By JOHN SAKALA
Konkola Copper Mines acknowledges having seen a media statement, dated May 29, 2020, issued by the Copperbelt Energy Corporation (CEC) in which it indicates that it intends to switch off power supply to KCM with effect from June 1, 2020.
KCM informs that the 20-year Power Supply Agreement (PSA) between CEC and KCM expired on 3
March 31 2020, and was extended by mutual agreement to May 31,
2020.
KCM has entered into a binding Term Sheet Agreement for a new PSA between ZESCO Ltd and KCM, effective June 1, 2020.
ZESCO Ltd is expected to conclude a Wheeling Agreement soonest with CEC to transmit power from ZESCO Ltd, via CEC infrastructure, to KCM operations.
KCM has also become aware that the Minister of Energy issued a Statutory Instrument (SI) on May 29, 2020, in terms of Section 15 of the Electricity Act, No 11 of 2019, declaring CEC as a common carrier of power from ZESCO to KCM using CEC infrastructure in the absence of a signed Wheeling Agreement between CEC and ZESCO Ltd.
This will enable Zesco to transmit power to KCM using CEC infrastructure, pending the Wheeling Agreement between CEC and ZESCO.
We expect a seamless transition in the supply of power from CEC to ZESCO and any interference or restriction will be an act of sabotage.
KCM cannot comment any further on any other issues pertaining to this matter as there is a pending case at the Kitwe High Court to which the Court is yet to pronounce itself on the said matters.
In as far as these matters are concerned, KCM reserves its rights and will seek redress at an appropriate time and forum.
The media statement issued by KCM Corporate Affairs General Manager Shapi Shachinda read in full.
