By KENNEDY MUPESENI
KONKOLA Copper Mines (KCM) has cleared US$160 million outstanding debts to contractors and suppliers who were owed by the mining firm.
The $160 million, which is part of the $200 million the mine owed local contractors and suppliers, represents 80 per cent of the total arrears.
In December last year, the mining giant reached a deadlock on the delay in paying money owed to local contractors and suppliers.
This prompted Government to get involved and an agreement was reached for KCM to settle all outstanding arrears by January 31, 2017 but suppliers and contractors only confirmed having received 80 per cent of the outstanding amount on Friday last week.
Association of Mine Suppliers and Contractors of Zambia (AMSCZ) president Augustine Mubanga said the mining firm had paid 80 per cent of the total debt and the remaining amount would be settled by February 15, 2017.
“The payments have brought relief to our members who spent months waiting for their money,” Mr Mubanga said.
He said this in an interview in Kitwe yesterday.
He said KCM management has assured that money had been sourced and that the remaining 20 per cent would be cleared by February 15, 2017 as promised.
Direct Material Suppliers Limited proprietor Bernard Mwila confirmed receiving the remittance by KCM.
“I supplied pumps last year to KCM and when the remittance was given, I was promised that the money reflected last Friday,”  Mr Mwila said.
According to Reuters, Vedanta Resources Plc, KCM’s parent company last week reportedly floated a  $1 billion bond  due for maturity in 2022 which will help to refinance part of its 2018 and 2019 maturities and extend its average debt maturity.
The company also plans to use the proceeds to repay its other existing debt stock.