Further Cautionary Announcement
Shareholders are referred to the cautionary announcements, dated 25th January 2021 and 9th June 2020 respectively, issued by the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company”) informing the market and shareholders of the following matters;
- That the Minister of Energy (“the Minister”) had on 29th May 2020 issued Statutory Instrument No. 57 of 2020 declaring CEC’s transmission and distribution lines as Common Carrier. Subsequently, the Energy Regulation Board, on 31 May 2020, directed a wheeling tariff equivalent to about 30% of the CEC standard network tariff.
- That Konkola Copper Mines (“KCM”) had accumulated a debt of USD144.7 million in unpaid power charges as at 31 May 2020 being the date on which the Power Supply Agreement between KCM and CEC expired. Further, KCM had signed a term sheet with ZESCO Limited for power supply.
Shareholders are informed that following a ruling by the High Court Judge, Madam Justice Elita Phiri Mwikisa, delivered on 26 February 2021, the Minister’s declaration of the Company’s transmission and distribution lines as common carrier was quashed. Following this decision, the task of concluding key commercial contracts to guide business relationships with all parties involved is outstanding.
In relation to the debt KCM owes CEC, the outstanding amount is about US$155 million. The outstanding events/circumstances surrounding the settlement of KCM’s debt and the review of the contractual arrangements in respect of continued service provision to KCM may have a material effect on the price of the Company’s securities. Shareholders are, therefore, advised to continue exercising caution when dealing in the Company’s securities until further information is given.
By Order of the Board
Julia C Z Chaila
Company Secretary
Issued in Lusaka, Zambia on 04 March 2021
First Issued on 09 June 2020
