The Lusaka High Court has directed the Sheriff of Zambia to seize goods and chattels belonging to Konkola Copper Mines (KCM) Plc to recover over K338 million owed to Copperbelt Energy Corporation (CEC).
By press time, the bailiffs were at KCM premises in Chingola to execute the order.
This follows KCM’s failure to make a partial payment of the $29.6 million debt owed to CEC within 10 days, as required by the court’s December 2, 2024, ruling under the Schemes of Arrangement.
According to a Writ of Fieri Facias (Fi-Fa) dated March 17, 2025, KCM was ordered to pay CEC US$11,843,871.45 by December 12, 2024.
The writ instructs the Sheriff to enforce the ruling:
“We command you in the President’s name that of the goods, chattels, and other property of KCM authorized by law to be seized in execution, you cause to be made the sum of K338,910,012.82, together with sheriff’s poundage, officers’ fees, costs of levying, and all other legal, incidental expenses. Immediately after execution of this writ, you pay CEC in pursuance of the said judgment, the amount levied in respect of the said sum.”
In his December 2, 2024, ruling, presiding Judge Charles Kafunda reaffirmed CEC’s right to payment as a Class 2 creditor under the Creditors’ Schemes of Arrangement. He dismissed arguments that pending appeals justified withholding payment.
“The restriction of suit by the Deed of Release and Waiver does not apply to appeals arising from challenges to the approval of a scheme… An affected creditor has a statutory right to object and a constitutional right to appeal,” he ruled.
The court further clarified that no stay of execution had been granted by the Court of Appeal, making the original ruling valid and enforceable.
In September 2024, CEC sought an amicable resolution, but KCM’s management cited the ongoing appeal as a barrier to payment.
However, Judge Kafunda emphasized that the appeal pertained to procedural objections, not the validity of the debt. He criticized KCM for using the appeal as an excuse to delay payments, reaffirming CEC’s right to receive the first installment under the approved scheme.
KCM later applied for a stay of execution, requesting the court to review its decision, citing new material evidence related to claims by Lumwana Mining Company Limited, Komatsu Enterprises Limited, and a dispute notice from Barrick Gold Limited. However, the court ruled that the evidence did not qualify as fresh material evidence under legal provisions.
KCM also argued that CEC was taking conflicting positions in different courts, seeking priority payment in one case while being classified differently in another.
The court rejected this argument, stating that adjudication processes related to the scheme had already been completed.
On March 7, 2025, the High Court upheld its original ruling, dismissed KCM’s application for review, and set aside the stay of execution previously granted.