ZCCM-IH Faces Arbitration Proceedings Over Trafigura Payment Dispute
LUSAKA – ZCCM Investments Holdings Plc (LUSE: ZCCM-IH) has informed its shareholders and the investing public of ongoing confidential arbitration proceedings initiated by Trafigura Pte Limited.
The arbitration, filed under the London Court of International Arbitration (LCIA) Rules 2020 on February 24, 2024, follows Trafigura’s demand for payment made on November 21, 2023. The dispute relates to a guarantee signed on July 28, 2021, by ZCCM-IH’s then-CEO.
The guarantee was provided as security for a ZMW 1.663 billion (approximately US$100 million) prepayment agreement between Trafigura and Konkola Copper Mines Plc (KCM), in which ZCCM-IH holds a stake. However, ZCCM-IH is contesting Trafigura’s claims and is actively challenging the arbitration proceedings.
As the case remains unresolved, the outcome could impact ZCCM-IH’s share price. The company has assured shareholders that updates will be provided as developments unfold.
Meanwhile, the company secretary has urged shareholders and the investing public to exercise caution when trading in ZCCM-IH securities and to seek independent professional advice regarding the matter.
This disclosure complies with the Securities Act No. 41 of 2016 (as amended) and the Lusaka Securities Exchange Listings Requirements. The announcement was made by ZCCM-IH’s company secretary, Charles Mjumphi, on Monday.
The statement serves to keep market participants informed of critical legal proceedings that may influence investment decisions.
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