The Copperbelt Energy Corporation (CEC) has bemoaned the prolonged non-settlement of debts by Konkola Copper Mines and Mopani Copper Mines for power supplied to the Mining Companies.
CEC is currently owed a total of US$177.2million as at August 18, 2022and the debt continues accumulating as the power utility continues supplying power to the mining company.
Speaking in an interview with ZANIS in Kitwe yesterday, CEC Chief Projects Officer Vincent Nyirenda said the debt has constrained the working capital of the power utility.
Mr. Nyirenda said the huge accumulated debt means that the company is operating with less working capital.
“The KCM debt has not been recovered and the matter is now before the court, there is an arbitration process that CEC has stated in order to recover the money owed by KCM and that process has not been concluded,” he said.
And on Mopani, another Mine that owes CEC arears for power supplied, Mr. Nyirenda said progress has been made to recover the money through a payment plan that has been agreed.
He noted that the recovery of the debt from the two mining companies will help put the power utility back on a comfortable working capital.
In 2020, when government took over the running of Konkola Copper Mines following the liquidation of the mine, the company begun abrogating the power supply agreement it had with CEC by refusing to pay bills for the power supplied until it escalated to huge sums.
And Mopani Copper Mine started defaulting on the payment conditions after Glencoe, the immediate past owners of the Mopani left the mine under unfavourable financial conditions.
And Mr. Nyirenda has complained of continued vandalism on its infrastructure.
He said the increased vandalism on its infrastructure is one of the key challenges the company has been grappling with over the past few years.
He however said the company has engaged the police in fighting the scourge which has resulted in apprehension of some culprits.
Government takeover of KCM & Mopani was a complete disaster by ECL. The Idea seemed good but running a mine is very expensive, the state should never be involved in running mines. Government should only regulate & collect taxes.
Nyirenda isn’t being truthful. CEC doesn’t pay for power to Zesco upfront that’s why they’re able to sustain that debt. The bulk of it is lying at Zesco except for the markup that CEC adds. If we ask Zesco we’ll be told that CEC is in fact owes more than what the 2 mines are owing. As for KCM, again he isn’t truthful because Vedanta began to default long ago and it’s one of the reasons the PF decided to takeover the mine. Vedanta wasn’t paying anybody and that includes contractors. As for Mopani Nyirenda’s statement has eroded our hope that the matter is being addressed at the highest level with the involvement of the President who has assured us that soon the matters will be resolved. So for now I think I’ll ignore Nyirenda’s statement. He’s just being political and I don’t…
Are you for real,,,no company can sustan a $100million debt its owned, do you know what is working capital? It doesnt matter what arrangements it has with its wholesaler ..the fact of the matter is its owned money and needs it to fund future projects and pay its own loan obligations. With you type of mindset its no wonder private enetities struggle in Zambia because people like you who owe them money think you know better their cash position and choose to ignore. Who are you to state that he is not being truthful or not…the truth of the matter is CEC is owned US$177.2million as at August 18, 2022.
“2.1, Tarino, I’m not bothered because most of arguments from an ignorant point of view. CEC doesn’t generate the power it sells to the mines, it buys from Zesco. When CEC isn’t paid it also doesn’t pay Zesco, so the one that feels the pinch is Zesco. This isn’t new, we had a similar case with Roan Antelope under Binani, another Indian infester. Acquaint yourself with the Kafue Consortium proposal and the reasons they advanced when they wanted CPC and Ndola Lime as part of the Sale Agreement. What we’re witnessing is what Mazoka saw in 1996. I hope Kapala will put things in their right context. Let him allow Zesco to state how much CEC owes as of today
What has ZESCO got to do with this? Man do you understand business and what working capital is? CEC has other obligations than ZESCO….CEC is owed almost $200m that’s what important here not that you are writting about.
Tarino Orange…read everything Ayatollah has said. It appears you are always negative if the truth is told. Ayatollah is not supporting the default. What he’s saying is that Vincent is somewhat economical with the truth
Ayatollah… the problem with people like Tarino Orange is that they want to hide their failures behind the PF….. the reason PF was kicked out was not for whoever took over to keep on reminding us that PF were bad, but to do it better than the PF. If you have no solution other than accusing the PF at every turn, then get out.
We all know that CEC exists for the sole purpose of supplying power to the mines so whether the mines owe ZESCO or CEC the debt should not be tolerated. These mines cant have our cake and eat it. They have eternal tax breaks and dont want to pay for power in a nation that badly needs power! Ati niye privatisation iyi? Present Power to the people not to the capitalists!
Umwina Mufcane – imagine you say so and so owes you money someone is busy talking about what you owe your wholesaler or your payment arrangements with them…really laughable
Deja Vu- Who is they? Do I work in govt or the ruling party?
You may be outside Zambia but you and KZ are operatives of your respective parties. You are paid to spread misinformation. The only thing you have seen wrong with Upnd is the appointment of Chushi because she’s very poor at propaganda.
Don’t be silly Deja Vu…I have been blogging too long enough out of my own interest to be paid by someone or any party. Have you been smoking your bumper harvest again?
*Are you for real….no company can sustain a $100million debt its owed, do you know what is working capital? It doesnt matter what arrangements it has with its wholesaler ..the fact of the matter is its owed money and needs it to fund future projects and pay its own loan obligations. With your type of mindset its no wonder private enetities struggle in Zambia because people like you who owe them money think you know better their cash position and choose to ignore. Who are you to state that he is not being truthful or not…the truth of the matter is CEC is owed US$177.2million as at August 18, 2022.
Nyirenda is being political and I don’t know the motive. Further, it’s not all decisions that the PF made that were wrong, some were correct. Therefore, my advice to Kabuswe is to look at matters at hand not through the PF lenses as that might mislead him. Your decisions must be those that will benefit Zambians and not those that just paint the PF black. We know the PF better than you do and that’s why we kicked them out. The ball is in your hands. You’ll not spend 5yrs telling us how bad PF was, unless you want to follow them come 2026
Ayatollah -You woke up on the wrong side of the bed today …you are now arguing with CEC’s Chief Projects Officer Vincent Nyirenda who has said the debt has constrained the working capital of the power utility. His motive is simple he needs working capital…if you have never run a business then you wouldnt understand.
“3.1, refer to 2.2
CEC wants the money owed to them by the two mines. If Zesco has a bone to chew with arrears by CEC, they will say it when they want. Am also alive to the CEC stand off with GRZ where private power line became Common Carrier to give Zesco advantage. Complicated story!
The other day CEC pushed away from its bio diesel, fuel, project that was launched in 2012 with 900,000 litres per year output at the Kitwe plant.
CEC needs money for those operations and obligations to survive.
Imagine that’s almost $200m in the local economy and someone wants to argue about what CEC owes ZESCO.
Look at the peformance of the mines by Zambians. Instead of progessing, the mines are regressing.
Privatisation works.
Government’s don’t know how to run business.
So when many of you are saying privatisation was robbery from the Zambian people, think again.
Ask yourselves the question: Were the mines making profit when owned by the government?
Are any of the mines taken back by government making profits or are just accumulating debts?
Sorry Ben, privatization favors the wealthy minority. That’s why capitalist countries house the richest and the very poorest. We now have discovered that the government can’t do anything about the poor because the wealthy bribe it to look after their interests. Just look at India, Brazil and even the US. In the US the wealthy are blocking gun laws because they feel threatened by the poor. The guns gives them a false sense of security. In short Privatization or capitalism is not the sole answer. The world is ready for a new economic ideology
How did the mines survive before privatization? We lived well until the west started to squeeze us because of Kaunda’s stand the liberation of Southern African countries.
Frankly Zesco and CEC have had a share of a raw deal between themselves and involving third parties. Such must not be seen as excuses when it comes to paying for the services rendered.
Why hasn’t CEC cut of energy from these mines? (When they last cut power, they were called saboteurs).
CEC sued KCM for non payment, how far has the case gone?
KCM petitioned CEC for some anomalies in the contract first signed in 2000. Is this case disposed of?
What other avenues does CEC have left to recover money?
Vincent Nyirenda’s appeal may be construed to be nonsensical because the firms involved are both parastatals drawing huge public interest. But there certainly must be a solution in the offing.
You ask very important questions.
ZCCM managed to run the mines very well and dont forget those were zambians mixed with exprates but the show was been runed by zambians so why not this time,we can do it with this new dawn govt,we can do it it is just a matter of changing our mind set and believe in ourselves and dedicate ourselves to it.
Apart from providing Zambian football with an exciting team is CEC necessary?
Yes of course it is necessary to keep CEC? Yes.
It is a success story and solid personification of privatisation. Liquid Telecoms is another self starter by CEC. However, their 50% shares were all sold away in 2018.
I can’t make of the CEC Lunsemfwa hydroelectric project with initial 56MW (expected extension to 500MW). But their Luano site with large fossil power generators serves Congo big time.
The company is making bio fuel and engages several soya beans and jathropha farmers.
Wonderful.
Why, I think, most people throw aspersions on CEC is the perceived overreliance on ZESCO energy.