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KCM gets court permission to evict U&M Mining Services

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Kitwe High Court Judge, Isaac Chali, has granted Konkola Copper Mines (KCM) an interim mandatory injunction order to compel U&M Mining Services, one of its contractors, to vacate the mining company’s Nchanga Site in Chingola.

This is in a case in which KCM is seeking a determination of the court on a mandatory injunction order compelling U&M mining Services, a Brazilian company, to vacate the Nchanga site.

In the Court application through ECB Legal Practitioners, KCM is seeking an order of interim preservation or custody of specified machinery and in the alternative, an order securing the advanced payment equipment guarantee dated June 23, 2011 in the sum of US$6,250,000, performance guarantee dated 23 June 2011 in the sum of $5000,000 and an advanced Bank Guarantee dated June 22 this year in the sum of $10,000,000.

And KCM Senior Legal Counsel, Matyola Ndulo, in his affidavit said KCM entered into an agreement with U&M Mining, dated April 25 2007 to excavate ore and waste material at Chingola open pits F and D.

Mr Ndulo stated that the two parties entered into another contract to expand the scope of work under the main contract to include work relating to the footwall and hanging walls.

He argued that the respondent was not carrying any mining activities in the country since the termination of the contracts by KCM.

Mr Ndulo further contended that the principal officers of the respondent were of foreign origin and were likely to leave the Zambian jurisdiction and equipment was in danger of being wasted, disposed of or alienated.

He stated that the respondent had refused to surrender the equipment advanced to it notwithstanding that ownership has not passed on account of the termination of the footwall and hanging wall contract.

The injunction was granted to KCM in chambers today.

ZANIS

14 COMMENTS

  1. Kcm is slowly loosing government trust and very soon their lip service is being
    exposed to the out side world. you duped RB and not HE Micheal Sata.
    If it was during Ruphia reign the afcon could habv been your show. your days are numbered

  2. Razor, its funny this board thinks you are from USA!

    i wonder if you are using a proxy server to hide your ip address?

    thats weird, why would you do that?

    maybe because you are trading the fluck out of BMR and you use multiple ids on forums!!!!

    people need to wise up!

  3. Now, let’s hear fro U&M lawyers. What are they counter claiming? Such agreements are supposed to be for long term; not just waking up that you have terminated or not renewed the contract. KCM may have discovered that there is no or little copper ore remaining at Nchanga open pit.

  4. It’s one thing for U & M to be kicked out and yet it is another to realise that 800 families in Chingola will loose a source of livelihood as a consequence. Government need to urgently come in and see how jobs can be preserved

  5. Do not worry, there is a solution in sight! KCM is in business and they would not just waste anyone’s time or indeed their own time. Very soon they will making some press release to inform the nation on the way forward….

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  7. I spent some time working on that site as a consultant for U&M helping the locals maintain the equipment mainly the 930&685 komatsu haul trucks. Not only does this situation hurt KCM and U&M financially it has a devastating blow on the local community and their ability to survive. Taking away the best paying jobs many oft these people have ever seen is going to be extremely hard to deal with both mentally and financially. I wish all of them the best of luck

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