London court orders KCM to pay ZCCM-IH $103m

London court orders KCM to pay ZCCM-IH $103m.

By Michael Kasonde and Namatama Mundia

THE London High Court has ordered Konkola Copper Mines to pay a US $103 million debt it owes state-owned Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH).

In June, ZCCM-IH filed a claim before the London High Court of Justice in relation to outstanding amounts pursuant to the terms of the settlement agreement.

The Court last Friday, December 16, made a ruling allowing ZCCM-IH’s application for judgment and also ruled that KCM should pay the liability in the region of US$100 million.

“We now advise that ZCCM-IH has been successful in its application for default judgment. KCM has been ordered (on 16 December 2016) to pay all sums owed to ZCCM-IH pursuant to the Settlement Agreement (plus associated contractual interest) within fourteen (14) days. The total amount to be paid by KCM amounts to approximately US$103 million,” read part of the judgment from the English Court.

KCM has also been ordered to reimburse ZCCM-IH 80 per cent of the costs it had incurred in pursuing its claim.

“Further directions have been given to determine whether KCM made payments to Vedanta Group Companies in breach of the prohibition on doing so under the Settlement Agreement. If and to the extent it is determined that such payments were made, ZCCM-IH will be entitled to recover additional sums from KCM,” stated the judgment.

And Konkola Copper Mines, in a statement released yesterday, stated that the company and its shareholder, state-owned ZCCM-IH, had been engaged in discussions with regard to the price participation settlement agreement entered into in December 2012.

“KCM is in consultation with ZCCM IH and other relevant stakeholders to resolve all outstanding issues within 30 days in accordance with the court’s ruling,” stated company spokesperson Shapi Shachinda in a brief statement yesterday.


Source : The Mast