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Konkola Copper Mines Statement On Cec Threats To Restrict Power

June 2, 2020

31 May 2020, CHINGOLA: Konkola Copper Mines (KCM) acknowledges having seen a media statement, dated 29 May 2020, issued by the Copperbelt Energy Corporation (CEC) in which it indicates that it intends to switch off power supply to KCM with effect from 1st June 2020.

Konkola Copper Mines informs that the 20-year Power Supply Agreement (PSA) between CEC and KCM expired on 31st March 2020, and was extended by mutual agreement to 31st May 2020. KCM has entered into a binding Term Sheet Agreement for a new PSA between ZESCO Ltd and KCM, effective 1st June 2020. ZESCO Ltd is expected to conclude a Wheeling
Agreement soonest with CEC to transmit power from ZESCO Ltd, via CEC infrastructure, to KCM operations.

KCM has also become aware that the Minister of Energy issued a Statutory Instrument (SI) on 29th May 2020, in terms of Section 15 of the Electricity Act, No 11 of 2019, declaring CEC as a common carrier of power from ZESCO to KCM using CEC infrastructure in the absence of a signed Wheeling Agreement between CEC and ZESCO Ltd. This will enable Zesco to transmit power to KCM using CEC infrastructure, pending the Wheeling Agreement between CEC and ZESCO.

We expect a seamless transition in the supply of power from CEC to ZESCO and any
interference or restriction will be an act of sabotage.

Konkola Copper Mines cannot comment any further on any other issues pertaining to this
matter as there is a pending case at the Kitwe High Court to which the Court is yet to
pronounce itself on the said matters. In as far as these matters are concerned, KCM reserves its rights and will seek redress at an appropriate time and forum.

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Konkola Copper Mines plc
Stand M/1408, Fern Avenue
Chingola, Zambia