First Quantum Minerals Ltd has reported that the legal proceedings between its subsidiary Kansanshi Mines and ZCCM Investment Holdings Plc has ended.
This was after the Arbitral Tribunal denied permission for ZCCM IH to proceed for failing to establish a prima facie case, thereby ending the arbitration.
The ruling followed the hearing of submissions from both sides over a three-day period in January 2018.
As a result of this ruling, ZCCM IH is liable for costs incurred with this proceeding.
ZCCM IH has since appealed the ruling which they allege is misconceived and meritless.
On March 7, 2018, the parties in the Statement of Claim filed in the Lusaka High Court mutually consented to a stay of proceedings.
The stay is pending resolution of an appeal by the Company and other named defendants of the Court’s decision to reserve judgment on the point that the claims were filed beyond the time.
Background
ZCCM-IH argued First Quantum took out a loan from Kansanshi at non-commercial interest rates and used it for company operations outside Zambia, disadvantaging ZCCM-IH as a 20 percent shareholder in the 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.
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.
First Quantum said 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.
FQM bribed PF……
@ spaka, I agree. This Malawian Lungu, in exchange for a bribe, would rather support foreign companies stealing from Zambians.
Yes Lazy Lungu already cited his position on this one…it was already in the bag for FQM and a donation to probably PF and Ester Foundation sorted everything!!
Thanks LT, SO WHAT IS THE GIST OF THE STORY?? Please tell us which claim this is and where this tribunal was, in Lusaka, London, where??
Are you too lazy to read the whole article????
who does not know that PF was bought with 3 silver pieces; FQM is better that the Chinese and Indian mines; let us move on and just make sure that QFM does not avoid to pay more tax next time;
That’s why I have faith in London Courts when it comes to dealing with global firms.
Uli cipuba? Bamibila shonse nshi ati “let us move on”. That’s why white people have no respect for Africans; we’re pushovers. Have some balls. Big up Kasolo.
What do you expect when the vision less visionary interfered and told off ZCCM to let go? In who’s interest is all this gibberish being perpetrated? Is it in the country’s interest or some people’s pockets? Cry my beloved country, the claims were filed beyond time? What nonsense is this? We are failing to get what belongs to us instead we are taxing the poor left right and center? We no longer have patriots in this country, what we have are thirsty corrupt elements bent on fattening the bank accounts and nothing less.
LT: so what claim was this about and before which court? Please help us understand or else dont bring it up as a news item if you don’t have the details. It’s frustrating
I agree with you matador, we want news that will impeach lungu, not this one.
Read the article in full. You must be a lazy person
So it coming. That’s why I hate capitalism
can’t stand the thugs ruling us… please God do someting nice, like making them drown in their alcohol this holly week!
Zambian courts are useless when it comes to figures of this nature….what FQM did was wrong, they have always been using their Kansanshi to leverage at our expense…windfall tax is the only way to squeeze these crooks let them do what they want with remaining profits!!
FQML invested their own money in Kansanshi and ZCCM-IH never put up a single ngwee. So how can they sue over an investment they never put an ngwee into ?
Its seems you dont understand the rules of game…typical its no wonder that Indian bought KCM with money from copper got from the same mine…too many lazy docile people.
Another reason why we need more libraries in Zambia.
Even if takes 100 years this matter shall be pursued. A case does not rot
LT; Thank you for a more informative up dated version
Is Kansanshi a bank it has lending licence? Was there a properly executed agreement to lend monies to each other?
FQM is the best thing that happened to zambia. They are not only the largest taxpayer but the largest single producer of copper in Africa. DON’T ANTAGONISE THEM YOU MAGGOTS!!
Your lazy bum father brought you up with no manners! A bitter bully and loser!
HaGay’s useress!
Glad that ZCCM-IH is appealing. It’s evidence that counts.