Konkola Copper Mines starts paying creditors

Beginning with the municipal and city councils in the Copperbelt, Konkola Copper Mines (KCM) has begun to pay its creditors after the company’s fate of liquidation was averted by Vedanta Resources.

A High Court Judge gave an ex parte order on 26 July to cease the winding up petition of KCM and reinstate the Board of Directors to their posts.

So far, Chingola Municipal Council has received over K26 million, Chililabombwe has received K8 million, and Kitwe city council has received K14 million.

KCM’s Chief Financial Officer, Manish Saxena, expressed his gratitude to the creditors for being patient with the mine whilst it overcame its challenges in recent years. In a positive response, Kitwe City Council Town Clerk, Patrick Kambeta noted that the payments from KCM to the councils is a sign that the Copperbelt economy is on track to regaining its glory days.

Mr Saxena importantly pointed to the way that KCM’s commitment to paying its class 1 and 2 creditors will strengthen the financial health of various local councils and businesses. KCM will be following the payment process guidelines set out in the Scheme of Arrangement, which will avoid any unnecessary delays.