Zambia Renown Copper Miner Fights $132 Million Electricity Bill
Vedanta Resources Ltd.’s Zambian entity in preliminary liquidation is struggling to keep the lights on after a power company has threatened to cut supply on a $ 132 million bill, according to court records.
Zambia’s largest single electricity consumer, Konkola Copper Mines Plc, received an injunction from the High Court on May 13, Copperbelt Energy Corp. prevented it from containing its electricity.
KCM denies the payment requested by CEC and says that electricity restrictions would cause irreparable damage to its facilities, according to an affidavit from the mining company.Vedanta Resources Ltd.’s Zambian entity in preliminary liquidation is struggling to keep the lights on after a power company has threatened to cut supply on a $ 132 million bill, according to court records.
The case is the latest in a series of financial problems at KCM that the government provisionally liquidated through a minority state shareholder a year ago. It is also not the first time that KEK has attempted to restrict deliveries due to non-payment. There was a similar dispute in 2014.
At the time of the liquidation, KCM owed $ 47 million in unpaid bills, according to the affidavit signed by Mbobe Nyondo, the company’s energy and risk manager. The KEK then requested payment of $ 132 million, of which KCM had paid $ 45 million. The electricity supplier then warned of a restriction of the offer and based on a message from a year ago, which according to Nyondo has now expired.
The High Court in Kitwe, where KCM is based, will hear the matter on May 26. None of the companies responded immediately to requests for comments.
