Musokotwane must help recover $1.4billion owed to ZCCM-IH by FQM
By Amb. Emmanuel Mwamba
Behind the Kansanshi 3.1% royalty payment deal
In 2016, ZCCM-IH took a legal suit to recover $2.3billion from First Quantum Minerals (FQM). ZCCM-IH also filed a notice of arbitration against First Quantum Minerals in London over the same matter.
This was after an audit established that FQM had illegaly externalised $2.3billion revenue from Kansanshi Copper and Gold Mine, fraudulently and without board approval.
FQM on the other hand, claimed the money taken from Kansanshi Copper and Gold Mine, was a loan and claimed that the loans were obtained at a fair market rate.
At the time, FQM were engaged in global mine expansion programs including the development of the Cobre Mine in Panama.
ZCCM-IH which holds 20% shareholding in Kansanshi Copper and Gold Mine, was seeking a pay-out of $1.4billion from this money which included its principal share of $570million, a tax liability of $260million and interest of $228million among other claims.
However, Minister of Finance Dr. Situmbeko Musokotwane announced on 6th December 2022 that ZCCM-IH were directed to drop these recovery court cases and the State had engaged the Director of Public Prosecutions ( DPP) to also discontinue the criminal charges pending against the FQM Directors.
“We want to spend time mining and not to be locked up in court with our partners”, he said.
This was part of the larger deal to convert ZCCM-IH 20% shares to an annual 3.1% royalty payment.
Sadly and of serious worry, Dr. Musokotwane has not provided a path-way for ZCCM-IH to recover the $2.3billion belonging to Kansanshi Copper and Gold Mines.
Instead of Zambia looking for foreign investment or seeking the return of the discredited Vedanta, Government should help ZCCM-IH, which urgently needs this money to run both KCM and Mopani Copper Mines.
Dr. Musokotwane must explain when First Quantum Minerals will pay ZCCM-IH this collasal sum.