“At the end of the day, on March 31, 2020, the parties were unable to agree because of certain conditions that both parties consider to be essential requirements and which, until now, are not acceptable to any of the parties.” “In accordance with Section 81 (1) of The Securities Act No. 41 of 2016, Copperbelt Energy Corporation Plc`s Board of Directors (“CEC” or “the company”) draws attention to the company`s shareholders and the market, which is expected to expire on March 31, 2020, the electricity supply contract (“CEC”) between ceC and ZESCO Limited (“ZESCO”). said Julia Chaila, business secretary. “The Government of the Republic of Zambia (“GRZ”) has informed KEK, through the Minister of Energy and Zesco, that the BSA expires on the aforementioned date and is not being renewed. GRZ and Zesco expressed their determination to KEK to continue to provide electricity to copper belt consumers, both during their validity and after the BSA. The CEC would like to underline its unwavering commitment to using its infrastructure and capabilities to ensure a continuous and fluid supply to all copper belt consumers, now and after the BSA. What is wrong with having a new agreement with totally different conditions? Remember, imwe ba CEC, in the past you have enjoyed free money. The government says the status quo cannot continue. So be prepared for new terms. If you paid 50 Ngwee per share earlier as a dividend, be prepared to pay 6 Ngwee per share. You don`t have a product to sell. It states that, during the negotiation phase of a new energy supply contract, the CEC will continue to provide seamless electricity services to all copper belt mining and non-mining consumers, just 24 hours after Energy Minister Mathew Nkhuwa ordered that there be no power outage in the copper belt. , and that the supply of electricity will continue under Zesco`s conditions.
The electricity supply agreement between the CEC and KCM was also withdrawn on 31 March and was extended by mutual agreement until 31 May, KEK said in a statement on Sunday. KCM owes US$132 million to the energy company, the CEC said. Copperbelt Energy Corporation asserts that negotiations for a new bulk supply agreement with ZESCO have failed because of certain new conditions proposed by the government that, if accepted, would adversely affect its operations. A 20-year contract between CEC and KCM, which operates Zambia`s largest copper plant, Nchanga, as well as the Konkola and Nchanga mines, expired on 31 March. It was extended by mutual agreement until 31 May, after… “Furthermore, and most importantly, the government has noticed in recent days that the CEC is not even prepared to sign a 12-month agreement, which has served as the basis for all negotiations conducted by both parties over the past seven (7) weeks, initially proposed by the government and zesco.” “In KEK`s view, the conclusion of a mutually acceptable electricity supply agreement between the parties remains of strategic importance to the electricity sector and to the country. This is why KEK remains convinced that the parties will take advantage of the coming weeks to narrow the negotiating gap in order to reach the urgently needed new electricity supply agreement. LUSAKA, May 31 (Reuters) – Zambia`s Copperbelt Energy Corp (CEC) will stop supplying the local unit of vedanta Konkola Copper Mines (KCM) from Monday after talks on a renewal of its debt supply contract to KEK failed.