CEC | Further Cautionary Announcement on KCM
Shareholders are referred to the cautionary announcement, dated 9th June 2020, issued by the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company) informing the market that the Power Supply Agreement with Konkola Copper Mines Plc (“KCM”) had come to an end, thereby removing any contractual obligations for CEC to continue supplying electricity to KCM.
Furthermore, shareholders were advised that KCM had accumulated debt of USD144.7 million in unpaid power charges and had signed a term sheet with ZESCO Limited (“ZESCO”) for power supply. In addition, the Government of the Republic of Zambia issued Statutory Instrument No.57 of 2020 on 29 May 2020 declaring CEC transmission and distribution lines as “Common Carrier”, enabling ZESCO to transport or wheel power through the CEC infrastructure to supply KCM.
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 1st December 2020
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First Issued on 9th June 2020
