Shareholders in Zambia’s largest mining investment firm have been advised that the arbitration case involving one of its investee companies has continued to progress and is nearing an end, according to a statement from ZCCM IH.
“Further to the cautionary announcement dated 25 November 2020, the Board of ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company” or “the Board”) hereby wishes to inform shareholders and the market that arbitration proceedings against ZCCM-IH and Kansanshi Mining Plc (“KMP”) by Kansanshi Holdings Limited (“KHL”) have progressed”, read the latest statement on the matter from Company Secretary Chabby Chabala on 23 June 2021. “The arbitration tribunal has issued a Partial Final Award (dated 29 January 2021) in the arbitration, pursuant to which ZCCM-IH’s defence has been successful and various declarations have been granted in ZCCM-IH’s favour”.
The matter in question relates to “the arbitration proceedings that followed a criminal complaint made by ZCCM-IH with allegations of an unauthorised transfer of money by Kansanshi Mining to First Quantum’s local subsidiary”, according to Reuters in 2019.
Shareholders will recall the Reuters article that covered the story which disclosed the interdependency of “a separate case that ZCCM-IH began action in October 2016 to sue First Quantum for $1.4 billion over claims that the Canadian company borrowed $2.3 billion from its Zambian copper mining subsidiary Kansanshi without informing ZCCM-IH, a minority shareholder”.
In their latest statement, ZCCM IH indicates that “certain matters remain outstanding and will be addressed by the tribunal in the Final Award”.
Despite this signaling a favorable arbitrational journey, “shareholders were still advised that the matter is still on-going and may still have a material effect on the price of the Company’s securities. This is why ZCCM IH will continue to update Shareholders as the case progresses.