Message Jeu 25 Sep 2014 20:09

KCM is telling lies-CEC

Copperbelt Energy Corporation Plc has refuted claims by Konkola Copper Mines Plc that CEC has effected further power restrictions to their operations.

In a statement, CEC Spokesman Chama Nsabika said KCM has been receiving in the order of 90% of their power requirements since Saturday, 20th September 2014 when CEC restricted part of their supply on account of their failure to pay for electricity consumed since April 2014.
The restriction was done in accordance with provisions of the Power Supply Agreement of 2000 and pursuant to a Restriction Notice issued to KCM in April 2014, and following the ruling of the High Court on 16th September 2014, setting aside the Injunction it had earlier granted to KCM, ex parte, restraining CEC from restricting, suspending, disconnecting or otherwise interrupting supplies of electricity.

The current restriction of KCM’s power requirements was agreed upon with KCM per PSA provisions and no further reduction has been effected since.

Mrs Nsabika said it seems KCM had attempted to bypass the power restriction to the Concentrator that CEC had effected on 20th September, leading to a load ramp up which caused trip outs on the system.

“On Tuesday, 23rd and Wednesday, 24th September 2014 at 23:48 hours and 01:53 hours respectively, CEC’s Incomer Transformers No.s 1A, 3A and 7A, which supply part of KCM’s Nchanga Mine, tripped out on an overload condition due to KCM’s ramping up of load on the previously restricted transformer capacity,” Mrs Nsabika.

She added, “This tripping, caused by excessive load uptake, resulted in interruption of power supply to the 11kV Front Bus Bars for 65 and 20 minutes respectively. Prior to the incident in question, KCM had been warned about their excessive power uptake as this could lead to tripping, as it indeed did.”

Mrs Nsabika said CEC deplores KCM’s continued attempts to vilify CEC in the public eye and play the victim while they persistently default on their payment obligations and renege on efforts to find a lasting settlement to the current challenges.

“While CEC continues to supply KCM, currently providing about 90% of all of KCM power requirements, KCM continues to refuse to settle invoices; in breach of our PSA and the Order of the High Court that dictates that the Parties continue to meet their PSA obligations.”

Meanwhile, Government has directed Konkola Copper Mines (KCM) and Copperbelt Energy Corporation (CEC) to resolve their standoff over the outstanding $44 million electricity bill the mining company owes before the end of today.

Speaking during a joint media briefing in Lusaka this afternoon with Mines Minister Christopher Yaluma, Chief Government Spokesperson Joseph Katema said that the standoff between the two companies has become a source of concern to government.

Dr Katema said that Government will not accept any further delay or inaction by the two companies to resolve this matter as it can have far reaching humanitarian and economic consequences.

Dr. Katema said that both companies were given enough time to resolve the matter, but that it is disappointing that the stand-off has continued and is now seriously threatening the safety of the workers at KCM.

He noted that the situation could have been avoided had the two companies exercised their responsibility by fulfilling their obligations to each other.

And Mines, Energy and Water Development Minister Christopher Yaluma feels both companies have not done what was expected of them which he says is unacceptable.