Arc Minerals Resolves All Zambia Legal Disputes to Refocus on Copper Exploration Growth
Arc Minerals Ends All Zambia Litigation Through Comprehensive Settlement, Clearing Path for Copper Exploration Expansion
London-listed Arc Minerals has reached a comprehensive settlement agreement that fully resolves all outstanding legal disputes involving the company and several related entities in Zambia.
The agreement brings to a close multiple litigation proceedings that had been ongoing across various Zambian courts and tribunals, allowing the company to focus on advancing its copper exploration and development projects in Zambia and Botswana.
Comprehensive settlement agreement reached
The settlement was signed between Arc Minerals, Handa Resources, Unico Minerals, and Kopara Investments (collectively referred to as Party A), and Zambia Mineral Exchange Corporation, Lunda Resources, and Mumena Mushinge (collectively referred to as Party B).
Under the agreement, all parties agreed to permanently discontinue eight separate legal proceedings and resolve all disputes, claims, and counterclaims on a full and final basis.
The settlement includes mutual releases under which both groups irrevocably waive and discharge all past, present, and future claims against each other, without any admission of liability by either side.
The agreement applies across all jurisdictions and covers any legal or regulatory proceedings connected to the disputes.
Arc Minerals shifts focus back to exploration
Arc Minerals CEO Rémy Welschinger welcomed the resolution, describing it as an important milestone for the company’s strategic direction.
He said the settlement enables Arc Minerals to focus entirely on advancing exploration and development activities across its operations in Botswana and Zambia.
Welschinger also highlighted the importance of the company’s Kabompo West project, describing it as one of the largest exploration footprints within Zambia’s Domes region, an area considered prospective for major copper discoveries.
Settlement includes conditional payment arrangement
As part of the agreement, Party B has agreed to make a conditional settlement payment of US$200,000 to Party A.
The payment will only become due if Party B delivers a Joint Ore Reserves Committee (JORC)-compliant measured mineral resource of at least 30 million tonnes at a cut-off grade of 1.5% copper on Lunda Resources’ licence 41777-HQ-LEL by December 31, 2031.
No payment obligation will arise if the resource target is not achieved within the agreed timeframe.
Licence ownership clarified
The settlement also formally clarifies ownership rights relating to two exploration licences involved in the disputes.
Lunda Resources has irrevocably renounced and waived any claims or interests in Handa Resources’ large-scale exploration licence 19906-HQ-LEL and agreed not to challenge Handa’s ownership rights in any future legal or regulatory proceedings.
In return, Handa has similarly renounced any interest in licence 41777-HQ-LEL, which is now formally recognized as legally owned by Lunda Resources.
According to the agreement, the area covered by licence 41777-HQ-LEL was previously part of Handa’s broader licence package but is considered non-material to Arc Minerals’ overall asset portfolio.
Strategic implications
The settlement removes a significant legal overhang for Arc Minerals and is expected to improve operational certainty as the company continues pursuing large-scale copper exploration opportunities in southern Africa.
The resolution comes at a time of increasing global demand for copper, driven by the energy transition, electric vehicle production, and expanding renewable energy infrastructure.
