‘POWER RESTRICTIONS WILL DESTROY KCM’
DISRUPTION of power supply to Konkola Copper Mines PLC (in liquidation) by Copperbelt Energy Corporation (CEC) will result in irreparable injury and but not limited to the flooding of its mines and now the mining giant has sued the corporation.
This is according to court papers filed yesterday in a matter in which ZESCO Limited and Konkola Copper Mines PLC (in liquidation) have sued the CEC in the Lusaka High Court, seeking a declaration that its restriction of power supply to KCM is against the law.
ZESCO and KCM are further seeking, among other claims, an order of injunction restraining the CEC by itself, its directors, officers or agents from interfering in the Time Sheet Agreement between the Plaintiffs through restricting KCM from receiving supply from Zesco pending determination of the matter.
In a statement of claim filed in the Lusaka High Court, Zesco stated that it entered into a Bulk Supply Agreement (BSA) with CEC on November 21, 1997 which expired and lapsed on March 31, this year.
It said that the BSA had not been renewed.
KCM on the other hand, stated that it entered into a Power Supply Agreement (PSA) with CEC around March 2000 and expired on March 31, 2020.
“By letter of Intent dated April 17, 2020, KCM and CEC agreed to extend the PSA up to May 31, 2020. KCM will further aver that it owns mining operations at its Nkana, Konkola and Nchanga Integrated Business Units (IBUs) which requires stable and bulk electricity supply for the operations of the said mines and is interconnected to CEC Network.
“CEC’s loss of its preferential status as bulk off taker of Zesco’s electricity affected CEC’s capacity to ensure stable and bulk electricity supply to KCM,” read the statement of claim.
KCM stated that in an effort to ensure stable and reliable power for its operations, it executed a binding Term Sheet with Zesco on May 22, this year, effective June 1, 2020.
They explained that the execution of the Term Sheet relied on ZESCO supplying power to KCM using CEC’s Transmission and Distribution lines.
Zesco and KCM are further seeking an order restraining CEC from effecting or taking steps to take out any supply units, lines or delivery points to KCM as they are Common Carriers as declared under S.l. No 57 of 2020.