By GRACE CHAILE LESOETSA
CHINESE investors have sued Government in the Lusaka High Court challenging the 50 percent take-over of the famous Black Mountain in Kitwe.
Tianjin Maolin Science and Technology Company Limited, and Nkana Alloy and Smelting Company Limited wants the court to order the Minister of Finance, who is the golden shareholder not to take 50 percent of the Black Mountain and exit the Nkana Alloy.
They want an order for the Ministry of Mines and Mineral Development not to demarcate 50 percent of the Black Mountain offered by them.
Tianjin Maolin and Nkana Alloy seek an order that Government will exit within 30 days of the judgement of the court.
And also an order that Government will grant the mining licence to Nkana Alloy within 30 days of the judgement of the court as well as an order that the Ministry of Home Affairs and Zambia Police Service will provide security to the Black Mountain and the companies’ staff.
Attorney General Likando Kalaluka is the defendant in the matter.
According to a statement of claim, Tianjin Maolin is a company incorporated in China. Tianjin Maolin through ENRC (BVI) Limited which was a special purpose vehicle upon purchase of the shares which was held by Chambeshi Metals Limited holds 90 percent shares in Nkana Alloy.
The other shareholders are ZCCM-IH with 10 percent while the Minister of Finance is a golden share holder.
The two companies’ stated that Nkana Alloy has faced numerous challenges since its incorporation in 2014 with ex-miners famously known as Jerabos who it had legal cases which were only resolved three years ago when ZCCM-IH decided to exit from it with its 10 percent shareholding of Black Mountain.
“There have been negotiations within the Golden share holder, Ministry of Home Affairs and Ministry of Mines and Mineral Development with the plaintiffs offering 20 percent of the Black Mountain material and willingness to purchase some materials from the vulnerable women and other beneficiaries,” they stated.
However, the Chinese companies stated that they had regulatory challenges and management changes in China and wrote a letter in May this year, addressed to the Ministry of Mines and Mineral Development Permanent Secretary (PS).
They claimed that the PS replied on May 21, 2021 that the Ministry will carry out proposals of the Minister of Finance in the letter dated April 26, 2021 which demanded 50 percent of the Black mountain.
“The Ministry of Mines indicated to proceed with the demarcation of the Black Mountain starting May 23, 2021 on 50 percent basis without conclusion of negotiations with the plaintiffs,” they stated.
The Black Mountain (Nkana slag dump) has been in existence since 1931 when the copper smelter was commissioned. The smelter slag contains about 0.34 per cent – 4.5 per cent cobalt and average 1.2 per cent copper.
Author
