ZCCM-IH wins extra $35m in court against KCM

Wed, 03 Jan 2018 14:09:07 +0000

By MAILESI BANDA

KONKOLA Copper Mines (KCM) has been ordered by the court to pay an additional US$35, 991, 768, to   ZCCM-IH for claims relating to outstanding payments under a 2013 copper price participation settlement agreement between the two entities.

In June 2016, ZCCM-Investments Holdings sued KCM claiming more than US$100 million from Vedanta Resources’ the owners of KCM.

According to an update from ZCCM-IH, the institution successfully brought an application for summary judgment against KCM, for an additional sum  bringing the total amount awarded to approximately US$139 million.

ZCCM-IH company secretary Chabby Chabala announced that the parties have since agreed on a repayment plan for the recovery of these additional sums.

Mr. Chabala explained that the plan consists of 21 equal monthly instalments of US$1,713,893.72, together with interest at 3 per cent.

He noted that the final payment is expected on 31 August 2019.

“We now advise that ZCCM-IH has successfully brought an application for summary judgment against KCM for such additional sums. Granting the claim in full, the Court has awarded ZCCM-IH a further US$35,991,768, bringing the total amount awarded to approximately US$139 million,” he said.

The claims are in reference to the market announcement provided in December 2016, in which the market was informed that the English High Court had granted default judgment in favour of ZCCM-IH in its claim against Konkola Copper Mines Plc (KCM), brought pursuant to a Settlement Agreement entered by the parties in 2013, for a sum in excess of US$100 million.

In the same announcement, the market was further informed that the court had given directions for an inquiry to determine whether KCM had breached the Settlement Agreement by making payments to Vedanta Group Companies whilst sums remained due and owing to ZCCM-IH, and whether ZCCM-IH would be entitled to recover additional sums from KCM as a result.

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