Zambia's ZCCM-IH to appeal against High Court judgment
Judgement delivered in favour of Canadian-based mining and metals company First Quantum Minerals
Zambia's ZCCM-IH to appeal against High Court judgment
Zambia’s ZCCM Investments Holdings (ZCCM-IH) Plc, has said it intends to appeal against the ruling of the Lusaka High Court delivered on March 23, 2020 regarding a matter the state-owened company commenced in 2016, against First Quantum Minerals Limited, FQM Finance Limited, Philip Pascall, Arthur Mathias Pascall, Clive Newall, Martin Rowley, and Kansanshi Mining Plc.
In a media statement, ZCCM-IH alleges that the defendants’ conduct on several occasions fraudulently engaged in transactions totaling in excess of $2bn for the benefit of the FQM Group, is detrimental to ZCCM-IH’s interests and those of the nation, and remained committed to protecting the said interests, adding that it will be appealing against the ruling.
In 2016, state-owned ZCCM-IH started the process of claiming up to $1.4bn from First Quantum Minerals Ltd after it accused the Canadian-based metals and mining company of engaging in fraud. The claim included $228m in interest on $2.3bn of loans that ZCCM-IH said First Quantum wrongly borrowed from the Kansanshi Copper Mine, as well as 20% of the principal amount or $570m, according to an internal company presentation, dated November 4, 2016.
ZCCM-IH is also seeking $26m as part of a tax liability the Zambia Revenue Authority (ZRA) said Kansanshi owed it and the cost of the mine borrowing money commercially that ZCCM-IH said could have been avoided.
In papers filed in the Lusaka High Court on October 28, 2016, ZCCM-IH said First Quantum used the money as cheap financing for its other operations.
ZCCM-IH is listed on three stock exchanges namely Lusaka Securities Exchange (primary listing), London Stock Exchange and the Euronext Access (Paris – Marche Libre secondary listings).
The Zambian government holds directly 17.25% shares and its 60.28% shares is held through the Industrial development Corporation (IDC) of Zambia, with the remaining 22.47% held by institutional and private individual shareholders.
ZCCM-IH currently has an investment portfolio of 22 companies, including Kansanshi Mining Plc (20%), Mopani Copper Mines Plc (10%) and Konkola Copper Mines Plc (20.6%). Its shareholdings in these companies range from 10% to 100%, with commodities and services that are diversified in nature, including copper, gold, cobalt, coal and power, limestone, mining consultancy, financial services and gemstones.
