By JAMES  KUNDA –
KONKOLA Copper Mines (KCM) has pledged to honour the payment of US$103 million owed to the Zambia Consolidated Copper Mines – Investment Holdings Plc (ZCCM-IH) in a settlement agreement.
This is after the English High Court on Friday last week ordered KCM to pay ZCCM-IH $103 million under the agreement.
The mining firm was also directed to reimburse ZCCM-IH 80 per cent of the costs incurred in pursuing the financial claim.
KCM is expected to pay the total sum within a period of one month.
KCM chief executive officer Steven Din said the mining company and ZCCM-IH had engaged in discussion over the price participation settlement agreement which was entered into by both parties in December 2012.
“I assure all of our stakeholders that we are working together to resolve this matter amicably and to reassure everyone that there is no risk to the KCM business.
“We remain fully committed to fulfilling our financial obligations,” Mr Din said.
He said this in Lusaka yesterday during a joint Press briefing with ZCCM-IH chief executive officer Pius Kasolo.
Dr Kasolo said the business relationship between both parties would continue and partners should be assured that all interests were protected.
“Going forward, both ZCCM-IH and KCM have committed to manage the business in a manner that is mutually beneficial to all the parties involved.
“ZCCM-IH remains committed to ensuring that KCM operations in the country continue and to provide the necessary support to them to ensure that we enhance the value of our stake in the company,” Dr
Kasolo said.
London-listed Vedanta Resources is the majority shareholder of KCM with a 79.4 per cent stake while ZCCM-IH holds 20.6 per cent.