By Darius Choonya
Konkola Copper Mines (KCM) has reiterated its commitment to fulfilling its financial obligations to creditors as outlined in the court-approved Scheme of Arrangement. The mining giant, currently navigating a complex financial restructuring process, assures stakeholders that it remains dedicated to settling all outstanding debts in accordance with legal agreements.
Speaking in an exclusive interview with Diamond News, KCM Chief Corporate Affairs Officer Dr. John Kunda confirmed that the company has already completed payments to smaller creditors classified under Class I—those owed less than $1 million. This, he stated, demonstrates KCM’s good faith and adherence to the approved repayment schedule.
Dr. Kunda further emphasized that payments to remaining creditors who have not raised disputes are also being processed as per the terms outlined in the Scheme of Arrangement. He assured that KCM is working diligently to ensure that all obligations are met within the agreed timelines.
“We acknowledge our responsibility to our creditors and have been making steady progress in executing the court-approved payment plan. Our priority is to continue honoring our commitments while maintaining operations at the mine,” Dr. Kunda said.
The assurance from KCM comes in the wake of recent legal action taken by Copperbelt Energy Corporation PLC (CEC), which sought to recover debts owed by the mining company. CEC had obtained a High Court order permitting the seizure of KCM’s assets valued at K38.9 million over outstanding payments under the creditors’ Scheme of Arrangement.
However, the Court of Appeal has since halted the execution of the seizure order, granting KCM relief while the legal process unfolds. The stay of execution means that the advertised sale of seized properties and assets will remain on hold until a final determination is reached. Additionally, the court directed that all items confiscated by the Sheriff of Zambia on March 18, 2025, be immediately returned to KCM.
This development underscores the ongoing legal and financial complexities surrounding KCM’s debt resolution efforts. The company has faced numerous challenges in recent years, including operational disruptions and liquidity constraints. However, KCM remains optimistic that its adherence to the Scheme of Arrangement will ultimately enable it to stabilize operations and fulfill all outstanding financial obligations.
The mining company also reaffirmed its commitment to maintaining open communication with stakeholders, including government authorities, creditors, and employees, as it works towards a sustainable financial future.
“We are fully committed to transparency and accountability in our restructuring process. We continue to engage with all stakeholders to ensure that our efforts align with the best interests of both the company and the broader economy,” Dr. Kunda added.
As one of Zambia’s largest mining operations, KCM plays a crucial role in the country’s economic landscape. The resolution of its financial challenges will be closely watched by industry analysts, policymakers, and business stakeholders. The successful execution of the Scheme of Arrangement is expected to not only resolve outstanding debt issues but also position KCM for long-term operational stability and growth.
Meanwhile, creditors and other interested parties await further legal proceedings that will determine the next steps in the company’s debt settlement process. The ongoing case between KCM and CEC serves as a reminder of the broader challenges facing Zambia’s mining sector, particularly regarding financial disputes and the regulatory landscape governing resource-based industries.
