NOW CEC FACES CONTEMPT

Sat, 26 Aug 2017 10:09:29 +0000

By Bennie Mundando and Jossy Chaima

THE Copperbelt Energy Corporation (CEC) has continued to defy a court order to restore full power supply to Mopani Copper Mines (MCM) as agreed in the Power Supply Agreement (PSA).

The case hearing of the  injunction and an application for leave to commence contempt proceedings also failed to take off yesterday as CEC’s lawyers applied for an adjournment, forcing the Kitwe High Court to push the matter to Wednesday next week.

And on 23 August MCM who are the plaintiff applied to the court to order and direct that defendant CEC through Directors officers, subsidiary companies, servants or agents do forthwith permit MCM to draw electricity from the various interconnections necessary for its operation up to the maximum of 250 mv monthly as agreed upon between the two parties.

On  24 August the Mopani advocates responded to the letter stating that the defendant has no respect for the court and behaviour of its officers undermined the course of justice and may seriously impair the standing and reputation of the court and judicial system in Zambia.

Justice Katenekwa has since adjourned the case to 30 August for hearing in Kabwe.

In a statement yesterday, MCM public relations manager Nerbet Mulenga said despite a court injunction, CEC had continued to restrict power to its assets in both Kitwe and Mufulira.

“Mopani Copper Mines Plc wishes to confirm that power supply to our assets in both Kitwe and Mufulira remains restricted despite a court injunction ordering the Copperbelt Energy Corporation (CEC) to restore supply at the levels agreed in the Power Supply Agreement (PSA).

“We wish to further advise that the case hearing of the injunction and an application for leave to commence contempt proceedings, which was scheduled for 09:00 hours (Friday) at the Kitwe High Court has been adjourned to Wednesday August 30, at 10:00 hours in Kabwe following a request from CEC’s legal representatives,” Mr. Mulenga said.

He said despite the impasse which had affected mine operations, Mopani had continued to pay its power tariffs in accordance with the existing contract and said the mine remained committed to negotiating with CEC and ZESCO in good faith.

He however said without a positive response from CEC and without a reliable power supply, the company was neither able to conduct operations safely nor maintain its workforce, saying while Mopani was the largest investor in the mining sector which contributed immensely to the economy of Zambia, the current stand-off with CEC put the investment at risk.

“We urge CEC to honour the power agreement that was signed with Mopani. CEC’s current inability to do so puts Mopani’s investment in Zambia at risk. Mopani is proud to be one of the largest investors in Zambia’s mining sector, having committed over US$4 billion since 2000.

Since 2014, Mopani has invested over US$1 billion in site expansions and upgrades to extend the life of mine by a further 25-30 years,” Mr Mulenga said.