In Zambia, the Copperbelt Energy Corp (CEC) will stop supplying electricity to Konkola Copper Mines (KCM), the local branch of the Vedanta Group, from next Monday, reports Reuters . This judgment comes after the failure of negotiations between the two parties on the settlement of the amount due by the mining company to the energy company.
KCM owes $ 132 million to its energy supplier. “Negotiations for an additional extension have failed, despite efforts made in good faith by the CEC to sign another contract,” said the CEC in a statement.
Energy Minister Matthew Nhkuwa told Reuters that KCM will now receive its energy from Zesco, the national power company. In the previous configuration, the latter sold the energy to the CEC which sold it to KCM. The sale agreement concluded between the two energy companies in this context also expired on March 31 before being extended by mutual agreement until May 31.
A new contract, effective 1 st June was then signed between ZESCO and KCM. Remember that mining is the biggest consumer of energy in Zambia.
Source: Agence Ecofin