The shareholders of Copperbelt Energy Corporation PLC (“CEC”) are referred to the cautionary announcement, dated 9th June 2020 and the subsequent announcements wherein the Company advised of an arbitration action under the UNCITRAL Arbitration Rules 1976 (the “UNCITRAL Rules”) taken by CEC against Konkola Copper Mines PLC (“KCM”) relating to a dispute out of the Power Supply Agreement (“PSA”) for the recovery of the debt owed by KCM to CEC in unpaid invoices for the supply of power (the “Arbitration”). The sum claimed by CEC was an amount of USD 139,798,529 plus accumulated interest (the “Debt”).
On 14th July 2023, shareholders were further advised that CEC and KCM had entered into a Settlement Agreement dated 12th June 2023 (the “Settlement Agreement”) under which the Parties agreed to settle and resolve completely and finally the dispute between them.
The Settlement Agreement provides that on settlement of the dispute, the arbitral tribunal shall issue an order for the termination of the arbitral proceedings and record the settlement in the form of an arbitral award on agreed terms.
The Board of Directors (the “Board”) wishes to inform shareholders that the arbitral tribunal comprised of Mr Michael Tselentis, KC sitting as Sole Arbitrator, has on the settlement reached by the Parties under the Settlement Agreement aforesaid, issued a Final Award By Consent of the Parties dated 3rd November 2023 pursuant to Articles 34 (1) and 34 (3) of the UNCITRAL Rules to close the arbitration proceedings.
The Award by Consent of the Parties has effectually concluded the Arbitration, releasing and settling all claims and counter claims between the Parties relating to the PSA made during the action. Consequent thereto the cautionary is hereby withdrawn and discontinued. In relation to this matter, shareholders are therefore no longer advised to exercise caution in dealing with the Company’s securities.
By Order of the Board
Julia C Z Chaila
Issued in Lusaka, Zambia on Tuesday, 07 November 2023