First Quantum Minerals has asked the Lusaka High Court to dismiss a $1.4 billion claim by ZCCM IH which accused the Canadian company of irregular transactions with its local subsidiary, Kansanshi Copper Mine.
ZCCM-IH owns 20% of Kansanshi Mine.
The claim by ZCCM-IH includes $228 million in interest on $2.3 billion of loans that it said First Quantum wrongly borrowed from Kansanshi Mine, as well as 20 percent of the principal amount, or $570 million.
First Quantum said in court papers seen on Wednesday in the Lusaka high court that the action taken by ZCCM-IH was started without the approval of the ZCCM I-H board, which was dissolved when the action commenced.
ZCCM-IH, in which the Zambian government has a 77 percent stake, said in papers filed in the Lusaka High Court on Oct. 28, 2016 that First Quantum used the money as cheap financing for its other operations.
In a November 11th 2016 filing in court, First Quantum said the claims were “inflammatory, vexatious and untrue,” and that the loans were at fair market rate.
In a similar case, Konkola Copper Mines was recently ordered by the London High Court to settle around US$103 million owed to ZCCM-IH.
That followed ZCCM-IH’s successful application for default judgment in the English High Court to recover outstanding sums in excess of US$100 million due to it from KCM Plc as part of the Settlement Agreement entered into in 2013.
Seriously? And their lawyers went to court to present these flimsy reasons to the judge to dismiss a case worth $1.4 billion? What kind of lawyers do they have?
ZIALE graduate?
Zambian lawyers are not wise but just learned.
the same are the advisers to Linda Kasonde.
FYI
Sentence below the picture should read,
“Copper Anodes for exports from Kansanshi mine”
The KCM case was completely different. It was about price participation clauses that allowed ZCCM-IH to get a share of revenues once copper prices went over a certain threshold. Straightforward!
FQM are being silly in their defence. Are they saying that ZCCM-IH can be defrauded just because there’s no board of directors in place? What are the employees there for if not to protect the interests of the company?
It looks like FQM used their group treasury to funnel “cheap” money from their Zambian operations for use elsewhere in their group. But they forgot that there was a minority shareholder called ZCCM-IH who FQM were defrauding in the process because ZCCM-IH does not have an interest in those other worldwide FQM operations. Straightforward!
AND ALL THOSE COPPER CATHODES ARE JUST EXPORTED AND NOTHING IS USED TO MANUFACTURE ANYTHING IN ZAMBIA. WE ARE NOT SERIOUS. AT LEAST 60% SHOULD BE USED BY MANUFACTURING INDUSTRIES WITHIN ZAMBIA AND THE REST EXPORTED. THAT’S HOW YOU CONTROL COPPER PRICES ON THE INTERNATIONAL MARKETS.
Peter you are right except you have called them cathodes, they are not cathodes but Anodes being exported.
Real refinery jobs being exported.
When you hear Zambia is rich it is only true in natural resources terms and not in innovation.
@See these are cathodes
Once again the international companies try to use lazy excuses not to pay there way in Zambia. I know the company is remaining strong but hope be that the government also stays strong and tells the international companies to stop moaning and get on with respecting us and our country.
GREAT! Anything to do with LACK OF RESPECT for FINANCIAL or CORPORATE PROCEDURES is bound to be suspected to mean FRAUD or DISHONESTY CONDUCT.The reasons being advanced by FQM look flimsy and this should work as an EYE OPENER to those who blindly trust these investors!! THIS CASE SHOULD BE PURSUED TO ITS LOGICAL CONCLUSION!! If this case is won in addition to the already won KCM case, then WE CAN START SAYING that ZCCM-IH is working!!
Dununa Reverse
You wonder what chikolwa was doing as MD of these company when all these deals where going on