In order to endure a smooth payment process, KCM requests that all suppliers, service providers and contractors adhere to and comply with the following regulations:-

Ordering and Delivery

• All goods/services delivered to KCM must be supplied against a written order. KCM is under no obligation to accept delivery of goods or services, which are not supported by an order.

• The Order Number must appear on all relevant documents i.e. invoice, delivery noe, etc. and, if necessary, on any further correspondence.

• All goods must be delivered via the Central Stores to the Receiving Controller of the individual mine as stipulated on the order. Except in the case of emergencies approved by KCM management, goods may not be delivered directly to the end-user. In such exceptional cases, accompanying documentation must follow the normal delivery procedure by 1000 hours the following working day.

• Suppliers and contractors must ensure that each invoice refers to one order only. Each order requires a separate invoice.

Documentation and Routing Thereof

• An ORIGINAL INVOICE plus one duplicate invoice must accompany all deliveries to Central Stores of the individual mine, and be delivered to the Receiving Controller in the Receiving Bay. Invoices should not be delivered to users or the Finance Department.

• A copy of the Official Order should be attached to the invoices.

• The following information must appear clearly on each invoice.

  • Supplier's VAT registration number or numbers

  • Supplier's physical and postal address

  • Supplier's full company name and registration number

  • A unique invoice number

  • The date

  • KCM's Order number

  • Zambia withholding tax payable (if applicable)

• The Original Invoice must be pre-printed and clearly identifiable from copies by colour logos signature. No alterations to Original Invoice will be acceptable.

• All suppliers and contractors must render Statement of Account by the 5th of each month. This is a critical requirement to ensure smooth processing of payments.

• Suppliers invoicing in foreign currency must show the exchange rate used for calculation of Zambian VAT.

Payment

• All goods and services received by the 25th of the month will be paid by the 25th Following month – provided invoices reach the Central Stores by the 25th .(All services invoiced on contract or invoices supported by Progress Certificates must also be submitted to Stores by the 25th ). of the

• Payment will be made by crossed cheque or by direct transfer.

• No advance payment or letters of credit will be allowed.

Invoicing and Payment

• All Original Invoices must be submitted by the dates specified in individual contracts or in the relevant Conditions of Contract document – a copy of which may be obtained on request. Any invoices submitted later than the stated dates will be processed the following month.

• Unless otherwise advised, all Zambian companies shall be paid in Kwacha – regardless of whether contract are expressed in foreign currency.

• The Kwacha/Foreign-currency rate of exchange will be based on Citibank's sell rate 2 days prior to payment.

Payment queries

• A HELP DESK in KCM's Department has been established to handle all payment-related queries.

• All such queries should be directed initially to the Help desk – following which the Help Desk Team will contact other departments for further information.

In the event of an unsatisfactory response from the Help Desk, suppliers may contact the relevant Material Managers.