9.5 C
Alba Iulia
Tuesday, August 4, 2020

First Quantum Minerals in dispute with ZCCM-IH over transfer of money from Kansanshi Mining

Headlines First Quantum Minerals in dispute with ZCCM-IH over transfer of money from...

Head of the Office of the High Commission of Canada in Lusaka Amy Galigan inspects copper at First Quantum Minerals' Kansanshi mine.
Head of the Office of the High Commission of Canada in Lusaka Amy Galigan inspects copper at First Quantum Minerals’ Kansanshi mine.

Reuters reports that First Quantum Minerals has begun arbitration proceedings against Zambian state miner ZCCM-IH to try to resolve a dispute about a money transfer to the parent company of Kansanshi Mining, which is majority-owned by the Toronto-listed group.

The arbitration proceedings follow a criminal complaint made by ZCCM-IH with allegations of an unauthorised transfer of money by Kansanshi Mining to First Quantum’s local subsidiary.

First Quantum’s shares fell nearly 3% on Friday.

In a separate case 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.

The transfer in the latest case was made between Kansanshi Mining, which is 80% owned by First Quantum and 20% owned by ZCCM-IH, to Kansanshi Holdings – the Zambian-registered vehicle through which First Quantum owns its majority stake.

A ZCCM-IH official, who declined to be identified, said the company had received information on Friday that Kansanshi Holdings intended to appeal for arbitration over the dispute.

The source declined further comment.

First Quantum was involved in a dispute with the Zambian government after being handed a $5.8 billion bill for unpaid import duties last year.

First Quantum’s second quarter results issued in July state its subsidiary Kalumbila Minerals had reached a settlement with the Zambia Revenue Authority “with respect to the assessment claim on duties”.

It does not name the figure, although a separate document seen by Reuters shows the figure to be 304 million Zambian kwacha ($21 million).

Tensions have been running high between western mining companies and several African governments this year as they have sought to increase their share of revenues from national resources.

Mumbai-listed Vedanta has been locked in a dispute with the Zambian government since May, when Lusaka appointed a liquidator to run Konkola Copper Mines (KCM), which is 20% owned by Zambian state mining company ZCCM and the rest by Vedanta. ($1 = 14.3500 Zambian kwachas) (Reporting by Chris Mfula Additional reporting by Barbara Lewis and Jeff Lewis in Toronto Writing by Tim Cocks Editing by Louise Heavens and Grant McCool)

11 COMMENTS

  1. How did our Zambia end up with a 20% share holding portfolio in our national assets of North Western Province? A better deal could have been struck, I feel.
    We are always rushing for the so called foreign direct investment but are we surely getting the benefit?
    It is always dispute after dispute. Utwakulondolola londolola. Looks like investment deals shrouded in disputes, dishonesty and crookery.
    Had it not been for this minority shareholder, we would not have known a thing about FDI dishonest dealing.
    A country without Assets and the control thereof is in ICU and third-quarterly (75%) dead.
    I can’t imagine the UAE or Saudi Arabia without 75-80% or 100% control of their oil fields.

    • Looking at the above picture…where are Zambians to be controlling our copper..bazungu are in charge while Zambians are in bars drinking and lodges fighting for young girls

    • Anonymous – How can be in-charge of a coming you don’t own. Look at what you are doing to KCM the State House moron has handpicked a Junior lawyer to manage its affairs.

    • Iwe dont complain. You have seen what you have done to zesco in 8 years. The zesco during mmd and the zesco of now it has gone down. I am not talking about the load shedding but just the standard of the company and infrastructure. During mmd when we used to go over the flyover by zesco we could see the yard full of transformers, cables and spares etc. Compare that to now. So there will be a time you will have to sell of the company as you have run it to the ground. Once the new investors pump in money and start doing well, you want to complain.

  2. Zambia is a depressing country run by incompetent greedy thieves. That is why my wlfe who is whlte managed to convince me to move to the UK until upnd win the elections. All I have heard since we left is suffering, hunger , loadshedding, theft. So now, apart from seeing my family, convince me why I should visit zambia over Christmas? My whlte wlfe says muleeee wanjiiii to you all, in her swiss British accent.

  3. We need another liquidator for FQM. This time it should be Chief Mumena as liquidator of all mines in Northwestern Province.

  4. THE THIEVES UNDER THE FAILED LAWYER ARE BUSY STEALING.THESE PF ARE THIEVES THEY DON’T HAVE ANY REGARDS FOR MOTHER ZAMBIA,LOOK AT 48 FIRE TRUCKS,FOREST 27 ETC OH WE HARE A THIEVING PRESIDENT ASK GBM HE WILL REVEAL MORE.

  5. @Thorn in the Flesh.
    You have asked a very thought-provoking question: How did Zambia end up with 20% share ownership in mines in North western Province? Unlike mines on the copperbelt which sat on brownfield land from colonisation to the time of privatization (Hence had less life span after recapitalization),mines in North western were newly established and developed on greenfield( virgin) land. Now how can Zambia via ZCCM-IH get 20% shares on new investment? Zambia has the natural resources and the investors have capital,is it had for our negotiators to settle for 50/50 share ownership or better? or maybe we are still lacking in negotiations skills as evidenced in Anil Argawal’s taking of KCM for a song.
    My question is,are we also expecting 20% GRZ shares on the newly discovered gold…

  6. …..on the newly discovered gold deposits sitting underneath greenfield land in NWP? Minister Musukwa was recently at a mining investment conference in UK and talked at length on investment in gold mines back home and no details on how Zambia must benefit from her new gold deposits.

Comments are closed.

- Advertisement -
Loading...
- Advertisement -

Latest News

Power Dynamos Dent Forest Rangers Title Dreams

Forest Rangers debut FAZ Super Division title hopes sustained a dent on Sunday when they lost 2-1 away to...

What is the real opportunity cost of the $13 million Kafue Flyover Bridge?

By Anthony Bwalya - UPND Member Today is the day the Patriotic Front (PF) regime and President Edgar Lungu will once again parade the media...

Chitotela calls for a fully developed tourism product at Lumangwe Falls Heritage Site

Minister of Tourism and Arts Ronald Chitotela says he wants to see a fully developed tourism product at Lumangwe Falls Heritage Site in effort...

Inspections of hospital pharmacies and health facilities in the Central Province to begin

The Zambia Medicines Regulatory Authority has embarked on robust inspections of hospital pharmacies and health facilities in the Central Province of Zambia as part...

More Articles In This Category