VEDANTA RESOURCES
In the early hours of Wednesday 24th September Konkola Copper Mines (KCM) experienced flooding at its Nchanga underground mine. It is KCM's view that this resulted from power restrictions that were introduced without notice by the Copperbelt Energy Corporation (CEC).
Copperbelt Energy Corporation (CEC) concedes that it restricted power supply to Konkola Copper Mines (KCM) and says that it did so on account of KCM's failure to pay its invoices for consumed electricity.
KCM has consistently abided by the terms of its agreements with CEC and the provisions in the Power Supply Agreement (PSA) of 2000. In recent years KCM has yielded to an increase in tariffs amounting to over 100 percent without receiving a corresponding upgrade of service from CEC. These increases have resulted in KCM having one of the highest power tariffs in the Zambian mining industry.
KCM seeks to resolve the dispute with CEC in a cordial manner. Both parties have financial claims and counter-claims against each other which need to be resolved through the appropriate dispute resolution mechanism.
Power supply has now been restored to KCM.
London-listed Vedanta Resources Plc ("Vedanta") is a one of the world's largest
diversified natural resources company. The Group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia,
Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered
talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visit: http://www.vedantaresources.com/www.vedantaresources.com
Roma Balwani
President- Group Communications, Sustainability & CSR
Tel- +91- 22 6646 1000 gc@vedanta.co.in
Shapi Sachinda
Manager- PR & Communications
Konkola Copper Mines
Tel: +260 978 871 958
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