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Konkola Copper Mines (KCM) has been taken to court by Cashfin Zambia Limited for allegedly failing to pay over US$8 million owed for petroleum products supplied to the mining company.
Cashfin Zambia, based on the Copperbelt and operating from Plot No. 19, Chinika Road, Northrise, is seeking payment of US$6,670,481.90 as the outstanding balance for goods supplied and an additional US$1,652,009.48 in tax liabilities.
According to a statement of claim filed in the Lusaka High Court’s Commercial Division, the two parties had an agreement under which Cashfin Zambia supplied petroleum products valued at US$9,194,221.39. KCM, however, has only made a partial payment of US$871,730.
An audit by the Zambia Revenue Authority (ZRA) established a tax liability of K48,124,931.92 from the transactions.
Cashfin Zambia had already paid K4,562,860.20, corresponding to the partial payment received.
The mining giant reportedly owes a total of US$8,322,491.39, which includes the unpaid tax liability.
At the current exchange rate of 1 USD to 26.38, this liability translated to K43,563,071.72.
Despite repeated demands, KCM had allegedly failed or refused to settle the debt, prompting Cashfin Zambia to seek relief through the courts, claiming damages and losses resulting from the non-payment.
The matter now awaits determination in the Lusaka High Court.
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