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Daily Nation > Blog > Business > Moxico Resources ordered to pay US$21M to Kalengwa Mineral Processing
Business

Moxico Resources ordered to pay US$21M to Kalengwa Mineral Processing

Nation Editor
Last updated: March 6, 2025 7:58 pm
Nation Editor
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…in damages and surrender land, mining assets, licence to the rightful owners

By GRACE CHAILE

KALENGWA Mineral Processing will eventually resume mining operations at Kelengwa Mines in Mufumbwe after the High Court declared it as the right owners of the mining tenement.

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High Court Judge Edward Musona, has also ordered the defendants, Moxico Resources Zambia Limited and Euroafrica Kalengwa Mines Limited to pay Kalengwa Mineral Processing, US$21 million in damages.

Judge Musona  stated that according to the evidence on record Kalengwa Mineral Processing  was the rightful owner of Farm.no 31477, farm n0 31478 and and farm.no 31479  Mufumbwe District, North western Province .

The High Court ordered Moxico Resources Zambia Limited, Euro-Africa Kalengwa Mines Limited to pay Kalengwa Mineral Processing Limited US$21,000,000.00 in addition to other reliefs.

This is a matter in which the involved parties had land, mining assets and licence wrangles, leading to long standing legal battles over Kalengwa Mine in Mufumbwe.

In 2019, the first and second Defendants launched proceedings in the Ndola High Court against Kalengwa Processing Zone Limited.

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They also obtained an Order of Injunction against the Plaintiff.

Delivering the verdict in the commercial matter, High Court Judge, Justice E.L Musona said Kalengwa Mineral Processing Limited was affected and suffered the repercussions of that Order of Injunction. 

“Equally, I have seen no evidence to show that the plaintiffs’ mineral processing licence no. 24982-HQ-MPL was ever cancelled.  Further, the first and second defendants did not challenge that mineral processing licence. Equally the Attorney General (third defendant) did not dispute the validity of the licence.

“Accordingly , therefore ,the plaintiff is entitled to remain on the property in question and so to continue or resume their mining operations under their mineral processing licence  no. 24982-HQ-MPL  over its mining tenement in Mufumbwe District known as Kelengwa Mines,” he declared.

He further ordered Moxico Resources Zambia Limited and Euroafrica Kalengwa Mines Limited to pay the plaintiff damages for theft and pilfering of its plant and equipment.

The Judge stressed that after making others suffer that Injunction for almost three years, Moxico Resources Zambia Limited and Euro-Africa Kalengwa Mines Limited unilaterally and without consent from the Plaintiff discontinued the whole case. 

Judge Musona found the first and second defendants malicious obtained an injunction against the plaintiff, when there was no need for it.

He said the case was an epitome of many legal evils which included forum shopping, malice, and time buying.

“It is not prudent fir parties to bring matters to court with a view of achieving such evils. This is what the first and second defendants herein have attempted, the history of this case has shown that the have taken this matter twice, have obtained injunctions twice and have discontinued their actions without the consent of the parties they sued,” he said.

He ordered for interest for the amounts found due to the plaintiff to be calculated at the current Bank of Zambia rate.

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