First Quantum launches arbitration against Zambian State miner
LUSAKA – First Quantum Minerals has begun arbitration proceedings against Zambian State miner ZCCM-IH to try to resolve a dispute over 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 State-owned ZCCM-IH against the alleged unauthorised transfer of money by Kansanshi Mining to First Quantum's local subsidiary.
ZCCM-IH in a separate case, launched 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 Mining 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 Toronto-listed First Quantum owns its majority stake.
A ZCCM-IH official, who declined to be named, said the company had received information on Friday that Kansanshi Holdings intended to appeal for arbitration over the dispute. The statement said arbitration would take place in London.
She declined to give further details of the money transfer or when it was alleged to have occurred. She declined to comment further. First Quantum could not be immediately contacted for comment.
The Canadian miner has been embroiled in a dispute with the Zambian government after being handed a $5.8-billion bill for unpaid import duties last year.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation